Question

Following are Nintendo’s revenue and expense accounts for a recent March 31 fiscal year-end (yen in millions). (Enter answers in millions.) Net sales ¥ 549,780 Cost of sales 335,196 Advertising expense 54,834 Other expense, net 117,907 Prepare the company’s closing entries for its revenues and its expenses.

Answer 1

Answer:

Explanation:

The closing entries  are shown below:  

1. Net sales  A/c Dr  ¥549,780 million

        To Income Summary ¥549,780 million

(Being revenue account closed)

2. Income summary A/c Dr ¥507,937 million

        To Cost of sales A/c ¥335,196 million

        To Advertising expense A/c ¥54,834 million

        To Other expense, net A/c ¥117,907 million

(Being expenses accounts are closed)

3. Income summary A/c Dr ¥41,843  million

                  To Retained earning ¥41,843  million

(Being the difference is credited to retained earning)