Answer:
Sales Revenue 326,560 debit
Income Summary 326,560 credit
-- to close revenues account--
Income Summary 310,360 debit
Income Tax Expense 10,530 credit
Office Expenses 6,330 credit
Rent Expense 164,500 credit
Salaries and Wages Expense 129,000 credit
--to close expenses account--
Income Summary 16,200 debit
Retained Earnings 16,200 credit
-- to close retained earnings--
Explanation:
To close the accounting period, we will use income summary account.
We will use it against revenues, expenses and dividends. Then his balance will be closed against retained earnings.
Income Summary balance: 326,560 - 310,360 = 16,200
