Presented below is income statement information of the Nebraska Corporation for

Question

Presented below is income statement information of the Nebraska Corporation for the year ended December 31, 2018.

Required:
Prepare the necessary closing entries at December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the entry to close the revenue and losses using the income summary.

2. Record the entry to close the expense accounts using the income summary.

3. Record the entry to close the income summary account.

Sales revenue 860,000 Cost of goods sold 455,000 Salaries expense 110,000 Insurance expense 40,000 Dividend revenue 5,000 Depreciation expense 38,000 Miscellaneous expense 32,000 Income tax expense 55,000 Loss on sale of investments 10,000 Rent expense 30,000

Explanation / Answer

31-Dec-18 Sales revenue 860000 Dividend revenue 5000        Income summary 865000 31-Dec-18 Income summary 770000       Salaries expense 110000       Miscellaneous expense 32000       Loss on sale of investments 10000       Cost of goods sold 455000       Insurance expense 40000       Depreciation expense 38000       Income tax expense 55000       Rent expense 30000 31-Dec-18 Income summary 95000       Retained earnings 95000

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