4 Determine the gross profit and net income then journalize

4. Determine the gross profit and net income, then journalize the entries required to close the accounts and finally to close income summary account. (20 percent) Sales 570,650 Rent revenue 18,500 The cost of sales 280,550 Wages Expense 80,000 Supplies Expense 45,000 General Expenses 10,000 Miscellaneous Expense 9,500

Solution

Part 1 - Calculation of Gross Profit and Net Profit

Part 2 - Journal entries required to close accounts

Particulars	Amount
Sales	570650
Less : Cost of Sales	280550
Gross Profit	$290100
Less : Expenses
Wages Expenses	80000
Rent Expenses	18500
Supplies expenses	45000
General Expenses	10000
Miscellaneous Expenses	9500
Net Income	$127100