Question

Shamrock has year-end account balances of Sales Revenue $836,833, Interest Revenue $14.000, Cost of Goods Sold $591,437, Administrative Expenses $206,230, Income Tax Expense $33,947, and Dividends $20,623. Prepare the year-end closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. (To close revenue accounts.) 2. (To close expense accounts.) 3. (To close income/(loss).) 4. (To close dividends.)

Answer 1

Jounal entries Sr. No. Credit 1 Account Titles and Explanation Debit Sales Revenue $ 836,833 Interest Revenue $ 14,000 Income Summary (To close revenue accounts) $ 850,833 2 $ 831,614 Income Summary Cost of goods sold Administrative Expenses Income Tax expense (To close expense accounts) $ $ $ 591,437 206,230 33,947 3 $ 19,219 Income Summary Retained earnings (To close income/loss)) (850833-831614) 19,219 $ 4 $ 20,623 Retained Earnings Dividends (To close dividends.) $ 20,623 I hope this solves your doubt. Feel free to comment if you still have any query or need something else. I'll help asap. Do give a thumbs up if you find this helpful.