Answer:
Sales Revenue 410,000 debit
Income Summary 410,000 credit
--to close revenues accounts--
Income Summary 95,000 debit
Administrative Expenses 38,000 credit
Income Tax Expense 30,000 credit
Sales Returns and Allowances 12,000 credit
Sales Discounts 15,000 credit
--to close expenses and other--
Income Summary 18,000 debit
Dividends 18,000 credit
--to close dividends--
Income summary 297,000 debit
Retained Earnings 297,000 credit
--to close the income summary against RE--
Explanation:
We have to close against income summary he temporary accounts:
To close this accounts we need to post them in their opposite side of the normal balance. Revenues will be debited while expenses credited.
At last, we solve for the income summary balance and close it against retained earnings
410,000 - 95,000 - 18,000 = 297,000
