Answer and Explanation:
The closing entries are shown below:
Sales revenue $620,000
Dividend revenue $3,000
To Income summary $623000
(Being closing of revenues to Income Summary)
Income summary 548000
To Salaries expenses $90,000
To Miscellaneous expenses $12,000
To Loss on sale of investment $8,000
To Cost of goods sold $355,000
To Insurance expenses $20,000
To Depreciation expenses $18,000
To Income tax expenses $35,000
To Rent expenses $10,000
(Being closing of expenses to Income Summary)
Income summary $75,000
To Retained earnings $75,000
(To close net income to Retained earnings)
Retained earnings Dr $5,000
To Dividend $5,000
(Being closing of dividend is recorded)
