Answer:
Explanation:
The closing entry for the following accounts are shown below:
1. Sales Revenue A/c Dr 760,000
Interest Revenue A/c Dr $3,500
To Income Summary $763,500
(Being revenue account closed)
2. Income summary A/c Dr $593,200
To cost of goods sold $425,000
To Interest Expense $5,100
To Salaries Expense $110,000
To depreciation Expense $31,000
To Rent Expense $16,000
To Insurance expense $6,100
(Being expenses accounts are closed)
3. Income summary A/c Dr $170,300
To Retained earning $170,300
(Being the difference is credited to retained earning)
The retained earning is computed by
= Number 1 - Number 2
= $763,500 - $763,500
= $170,300
