Brief Exercise 311 Windsor has yearend account balances of S

Brief Exercise 3-11 Windsor has year-end account balances of Sales Revenue $795,635, Interest Revenue $14,740, Cost of Goods Sold $567,566, Administrative Expenses $205,540, Income Tax Expense $35,298, and Dividends $20,554. Prepare the year-end closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \"No entry\" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. To close revenue accounts.) 2. To close expense accounts.) 3. (To close income/(loss).) 4. (To close dividends.)

Solution

Journal Entries (Amount in $)

No.	Account Titles and Explanation	Debit	Credit
1)	Sales Revenue	795,635
	Interest Revenue	14,740
	Income Summary		810,375
	(To close revenue accounts)
2)	Income Summary	808,404
	Cost of goods sold		567,566
	Administrative Expenses		205,540
	Income Tax Expense		35,298
	(To close expense accounts)
3)	Income Summary ($810,375-$808,404)	1,971
	Retained Earnings		1,971
	[To close income/(loss)]
4)	Retained Earnings	20,554
	Dividends		20,554
	(To close dividends)