Homework SoursePresented below is information related to Coronado Corporati
Presented below is information related to Coronado Corporation for the month of January 2017.
Prepare the necessary closing entries.
| Cost of goods sold | $192,350 | Salaries and wages expense | $65,470 | |||
| Delivery expense | 7,420 | Sales discounts | 8,770 | |||
| Insurance expense | 11,370 | Sales returns and allowances | 14,060 | |||
| Rent expense | 21,700 | Sales revenue | 324,000 |
Solution
Prepare the necessary closing entries.
| Date | accounts & explanation | debit | credit |
| Sales revenue | 324000 | ||
| Income summary a/c | 324000 | ||
| (To record close of revenue account) | |||
| Income summary a/c | 321140 | ||
| Sales returns and allowances | 14060 | ||
| Sales discounts | 8770 | ||
| Cost of goods sold | 192350 | ||
| Delivery expense | 7420 | ||
| Insurance expense | 11370 | ||
| Rent expense | 21700 | ||
| Salaries and wages expense | 65470 | ||
| (To record close of expenses account) | |||
| Income summary a/c | 2860 | ||
| Retained earnings | 2860 | ||
| (To record close of income summary account) |
