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3 years ago

Presented below are selected account balances for Tamarisk Co. as of December 31, 2020.

Business

1 answer:

Svetradugi [14.3K]3 years ago

7 0

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)

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