Question

The adjusted trial balance of Antoine Corporation at December 31 shows that sales revenue for the year was $ 535 comma 000 and other revenue was $ 41 comma 000. Cost of goods sold for that same period was $ 305 comma 000​, while other expenses totaled $ 225 comma 000. The corporation declared and paid dividends of $ 20 comma 000 during the year. The balance of retained earnings before closing entries was $ 485 comma 000. Read the requirements LOADING.... 1. Prepare the closing entries for​ revenues, expenses, and dividends for the year. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.) Begin by recording the entry to close out the revenue accounts. Journal Entry Date Accounts Debit Credit Dec 31 Sales Revenue 535,000 Other Revenue 41,000 Retained Earnings 576,000 Close out the expense accounts. Journal Entry Date Accounts Debit Credit Dec 31 ▼ Cost of Goods Sold Other Expenses

Answer 1

Answer:

Explanation:

The closing entries for the following accounts are shown below:

1. Sales Revenue A/c Dr $535,000

  Other revenue A/c Dr $41,000

                   To Income Summary A/c $576,000

(Being revenue account closed)

2. Income Summary A/c Dr $530,000

       To  Cost of goods sold $305,000

       To other expenses $225,000

(Being expenses accounts are closed)

3. Income summary A/c Dr $46,000

                   To Retained earning $46,000

(Being the difference is credited to retained earning)

4. Retained earnings A/c Dr $20,000

             To Dividend A/c $20,000

(Being dividend account is closed)