The December 28, 2013 income statement of Snap-On Incorporated includes the amou
ID: 2416269 • Letter: T
Question
The December 28, 2013 income statement of Snap-On Incorporated includes the amounts shown below. The company paid dividends of $93.2 (in millions). Prepare the closing entries for the company for 2013.
(in millions)
Net sales
$3,056.5
Deferred revenue
1,567.0
Cost of goods sold
1,583.6
Other operating expenses
1,012.4
Interest expense, net
60.0
Accumulated depreciation
245.0
Operating income from financial services
125.7
Income tax expense
166.7
(in millions)
Net sales
$3,056.5
Deferred revenue
1,567.0
Cost of goods sold
1,583.6
Other operating expenses
1,012.4
Interest expense, net
60.0
Accumulated depreciation
245.0
Operating income from financial services
125.7
Income tax expense
166.7
Explanation / Answer
Closing Entries For Month of Dec 31, 2013 S No Date Account Title Debit Credit 1) 31-Dec-13 Profit & Loss Account 2,822.70 To Cost of Goods Sold 1,583.60 To Other operating expenses 1,012.40 To Income Tax Expeses 166.70 To Interest Expenses 60.00 (being entry passed for transfer of expenses to profit & Loss account) 2) 31-Dec-13 Sales 3,056.50 Operating income from financial services 125.70 To Profit & Loss Account 3,182.20 (being entry passed for transfer of sales & Other Income to profit & Loss account) 3) 31-Dec-13 Cash 233.80 To Deffered Revenue 233.80 (being entry passed for Recodring advance received for Sales to be made) 4) 31-Dec-13 Dividend Expenses 93.20 To Cash 93.20 (being entry passed for dividend payment) 5) 31-Dec-13 Profit & Loss Account 93.20 To Dividend Expenses 93.20 (Being entry passed for transfer of dividend exp to profit & Loss account) 6) 31-Dec-13 Profit & Loss Account 266.30 To Retained Earnings 266.30 (being entry passed for transfer of closing profit to retained earnigs)
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