Question

View Policies Current Attempt in Progress Presented below is information related to Vaughn Corporation for the month of January 2020. Cost of goods sold Delivery expense Insurance expense Rent expense $222,460 7,290 11,760 21,140 Salaries and wages expense Sales discounts Sales returns and allowances Sales revenue $65,030 7,560 13,720 366,500 Prepare the necessary 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 Ofor the amounts.) Debit Credi No. Date Account Titles and Explanation Jan. 1. 31 (To close revenue accounts) 2. Jan. 31 (To close expense accounts) 3. Jan. 31 (To close net income / (loss))

Answer 1

Date	Account titles and explanation	Debit	Credit
Jan 31	Revenue	$366,500
	Income Summary		$366,500
	(To close revenue accounts)
Jan 31	Income Summary	$348,960
	Sales discounts		$7,560
	Sales returns and allowances		$13,720
	Cost of goods sold		$222,460
	Salaries and wages expense		$65,030
	Delivery expense		$7,290
	Insurance		$11,760
	Rent Expense		$21,140
	(To close expenses account)
Jan 31	Income Summary	$17,540
	Retained Earnings		$17,540
	(To close net income)