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