Answer:
1. Dr Sales Revenue $411,940
Cr Income Summary $411,940
2. Dr Income summary $341,540
Cr Cost of Goods Sold $225,870
Cr Sales Returns and Allowances $13,650
Cr Sales Discounts $15,290
Cr Selling Expenses $17,400
Cr Administrative Expenses $39,150
Cr Income Tax Expense $30,180
3. Dr Income summary $70,400
Cr Retained earning $70,400
4. Dr Retained earnings $19,080
Cr Dividend $19,080
Explanation:
Preparation of closing entries for Homer Winslow Co. on December 31, 2014
1. Dr Sales Revenue $411,940
Cr Income Summary $411,940
(Being To close expense accounts)
2. Dr Income summary $341,540
($225,870+$13,650+$15,290+$17,400+$39,150+$30,180)
Cr Cost of Goods Sold $225,870
Cr Sales Returns and Allowances $13,650
Cr Sales Discounts $15,290
Cr Selling Expenses $17,400
Cr Administrative Expenses $39,150
Cr Income Tax Expense $30,180
(Being To close expense accounts)
3. Dr Income summary $70,400
( $411,940 -$341,540 )
Cr Retained earning $70,400
(Being To close net income)
4. Dr Retained earnings $19,080
Cr Dividend $19,080
(Being To close dividends to retained earnings)
