Answer:
Explanation:
The closing entry for the following accounts are shown below:
1. Sales Revenue A/c Dr $744,020
Interest revenue A/c Dr $13,110
To Income Summary $757,130
(Being revenue account closed)
2. Income summary A/c Dr $748,054
To Cost of Goods Sold $513,065
To Administrative Expenses $202,210
To Income Tax Expense $32,779
(Being expenses accounts are closed)
3. Income summary A/c Dr $9,076 ($757,130 - $748,054)
To Retained earning $9,076 ($757,130 - $748,054)
(Being the difference is credited to retained earning)
4. Retained earnings A/c Dr $20,221
To Dividend A/c $20,221
(Being dividend account is closed)
