On July 31 2019 the balances of the accounts appearing in th

On July 31, 2019, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a furniture wholesaler, are as follows Accumulated Depreciation-Building Administrative Expenses Building Cash Cost of Merchandise Sold Interest Expense Merchandise Inventory Notes Payable $365,000 440,000 810,000 78,000 775,000 6,000 115,000 100,000 Peter Bronsky, Capital Peter Bronsky, Drawing Sales Sales Tax Payable Selling Expenses Store Supplies Store Supplies Expense $530,000 15,000 1,437,000 4,500 160,000 16,000 21,500 Prepare the July 31, 2019, closing entries for Serbian Interiors Company in the order as presented in the chapter For a compound transaction, if an amount box does not require an entry, leave it blank. July 31 July 31

Solution

31-Jul Sales 1437000       Income Summary 1437000 31-Jul Income Summary 1402500       Cost of merchandise sold 775000        Administraive expenses 440000        Interest expense 6000        Selling expenses 160000        Store supplies expense 21500 31-Jul Income Summary 34500        Peter Bronsky, Capital 34500 31-Jul Peter Bronsky, Capital 15000        Peter Bronsky, Drawing 15000