Answer and Explanation:
The closing entries for the following accounts are presented below:
1. Sales Revenue A/c Dr $408,750
To Income Summary $408,750
(Being revenue account closed)
2. Income summary A/c Dr $323,830
To Cost of Goods Sold $229,017
To Sales Returns and Allowances $11,908
To Sales Discounts $15,070
To Selling Expenses $16,133
To Administrative Expenses $37,525
To Income Tax Expense $30,300
(Being expenses accounts are closed)
3. Income summary A/c Dr $84,930 ( $408,750 - $323,830)
To Retained earning $84,930
(Being the difference is credited to retained earning)
4. Retained earnings A/c Dr $17,873
To Dividend A/c $17,873
(Being dividend account is closed)
