American Chlp C ns fiscal yearend is December 31 The followi

American Chlp C n\'s fiscal year-end is December 31. The following is a partal adjusted trlal balance as of December 31, 2018. Account Title Debits Credits B5,000 B00,000 5, 500 Sale revenue Cost of goods sold 8alaries expense Rent expense Depreciation expense 445,000 150,000 20,000 35,000 5, 500 6,500 Required: Prepare the necessary closingea December 31, 2018. (If no entry is required for a transaction/event, select \"No Journal entry required In the first account field.) View transaction list Journal entry worksheet Record the entry to close the revenue accounts using the income summary. Date Debit Credit 2018 Record entry Clear enty View génèral joumal

Solution

Dec, 31 Sales Revenue Dr. 8,00,000

Interest Revenue Dr. 5,500

Income Summary Cr. 8,05,500

Recording of close of revenue to income summary

Dec 31 Income Summary Dr. 662,000   

Cost of good sold Cr. 445,000

salaries Cr. 150,000

Rent Cr. 20,000

Depreciation Cr. 35,000

Interest Cr. 5,500

Insurance Cr. 6,500

Recording close of expense to income summary

Dec, 31 Income Summary Dr. 85,000

Retained Earning Cr. 85,000

recording close of RE to income summary