American Chip Corporation\'s fiscal year-end is December 31. The following is a

Question

American Chip Corporation's fiscal year-end is December 31. The following is a partial adjusted trial balance as of December 31, 2013 Credits 85,000 800,000 5,500 Account Title Retained earnings Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Insurance expense Debits 445,000 150,000 20,000 35,000 5,500 6,500 Required Prepare the necessary closing entries at December 31, 2013. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) View transaction list 1 Record the closure of revenue accounts. 2 Record the closure of expense accounts. 3 Record the transfer of the net profit. Credit Note : = journal entry has been entered Record entry Clear entry View general journal

Explanation / Answer

Closing entry :

Date accounts & explanation debit credit Sales revenue a/c 800000 Interest revenue a/c 5500     Income summary a/c 805500 (To record close of revenue account) Income summary a/c 662000      Cost of goods sold a/c 445000      Salaries expenses a/c 150000        Rent expenses 20000       Depreciatione expenses 35000      Interest expenses 5500      Insurance expenses 6500 (TO record close of expenses account) Income summary a/c 143500      Retained earnings a/c 143500 (TO record close of net profit)

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