Homework SourseWindsor has yearend account balances of Sales Revenue 839807
Windsor has year-end account balances of Sales Revenue $839,807, Interest Revenue $13,020, Cost of Goods Sold $534,832, Administrative Expenses $193,450, Income Tax Expense $32,693, and Dividends $19,345. Prepare the year-end closing entries.
Solution
Closing entries :
| Date | accounts & explanation | debit | credit |
| Sales revenue | 839807 | ||
| Interest revenue | 13020 | ||
| Income summary a/c | 852827 | ||
| (To record close of revenue account) | |||
| Income summary a/c | 760975 | ||
| Cost of goods sold | 534832 | ||
| Administrative Expenses | 193450 | ||
| Income Tax Expense | 32693 | ||
| (To record close of expenses account) | |||
| Income summary a/c | 91852 | ||
| Retained earnings a/c | 91852 | ||
| (To record close of income summary a/c) | |||
| Retained earnings a/c | 19345 | ||
| Dividend a/c | 19345 | ||
| (To record dividend account) |
