Question

3. The year-end adjusted trial balance of ABC Supply, Incorporated, for the current year is shown below. ABC SUPPLY INC. Adjusted Trial Balance December 31 Cash Office supplies Merchandise inventory Store equipment Accum. depr.-store equipment Accounts payable Common Stock Sales Cost of goods sold Depreciation expense-Store equipment Office Supplies expense Salaries expense Rent expense Debit Credit $1,500 500 11,000 18,000 $3,000 6,000 28,000 60,000 48,000 1,000 1,000 14,000 2.000 $97.000 $97.000 Required: Prepare closing entries at December 31 for the current year. Explanantion Debit Date Credit

Answer 1

Preparing of closing entries at December 31 for the current year:

Date	Explanation	Debit	Credit
Dec31	Sales	$60000
	Income summary		$60000
	(To record the closing of revenue account)
Dec31	Income summary	$66000
	Cost of foods sold		$48000
	Depreciation expense-store equipment		$1000
	Office supplies expense		$1000
	Salaries expense		$14000
	Rent expense		$2000
	(To record the closing of all expense accounts)
Dec31	Retained Earnings	$6000
	Income summary		$6000
	(To record the closing of income summary account)

_______×________

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