View History Bookmarks Window Help Wixiceda Facebook The Weather Channel Problem

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View History Bookmarks Window Help Wixiceda Facebook The Weather Channel Problems t section ot the worksheet tor Capeletti Distributors contained the tollowing intormatio tncone Sunnary 39,600 42,900 261,500 Sales Returna and Allovances Sales Discounts Interest Ineone 4,400 1,600 220 137,200 2.700 Freight In Purchases Returns and Allovances 1,500 1,630 Rent Expense utilities Expense Telephone Expense 12,000 ,030 1,740 67,100 5,370 Payroll Taxes Expense Supplies Expense Depreciation Expense Enterest Expense Totals ,000 279,440 $307,750 Assume further that the owner of the firm is John Capeletti and that the John Capeletti, Drawing account had a balance of $30,700 on December 31, 2019. Prepare the entries that should be made in the general journal to close the revenue, cost of goods sold, expense, and other temporary accounts Journal entry worksheet Prepare the closing entry for revenue and other credit tems debits before credits 19

Explanation / Answer

Journal Entries S.No. Account Name Debit Credit 1 Sales revenue $        261,500 Interest Revenue $                220 Purchase Returns and allowance $            1,500 Purchase Discounts $            1,630                    To Income Summary $        264,850 ( to close the revenue account at year end) 2 Income Summary A/c $        239,840                       To Saes Return and Allowances $            4,400                        To Sales Discounts $            1,600                        To Purchase $        137,200                        To Freight Inward $            2,700                        To Rent Expense $          12,000                        To Utility Expenses $            3,030                         To Telephone expnses $            1,740                        To salary Expenses $          67,100                        To Payroll Tax Expense $            5,370                        To supplies expense $            1,280                        To Depreciation A/c $            3,000                         To Interest Expenses $                420 ( to close the cost of goods sold and expnses accounts at year end) 3 Income Summary A/c $          28,310                    To Retained Earning $          28,310 ( To cloase the income summary account at year end) 4 Retained earning a/c $          30,700                      To Drawing A/c $          30,700 ( To close the drawing a/c at year end)

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