Question

Presented below are selected account balances for Bramble Co. as of December 31, 2020. Inventory 12/31/20 $61,060 Cost of Goods Sold $223,482 Common Stock 73,650 Selling Expenses 15,959 Retained Earnings 45,870 Administrative Expenses 38,595 Dividends 17,785 Income Tax Expense 30,520 Sales Returns and Allowances 12,014 Sales Discounts 14,740 Sales Revenue 405,510 Prepare closing entries for Bramble Co. on December 31, 2020. (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 0 for the amounts.)

Answer 1

Step-by-step explanation:

The closing entries for the following accounts are shown below:

1. Sales Revenue A/c Dr $405,510

To Income Summary $405,510

(Being revenue account closed)

2. Income summary A/c Dr $335,310

To Sales Returns and Allowances $12,014

To Sales Discounts $14,740

To Cost of good sold $223,482

To Selling Expenses $15,959

To Administrative Expenses $38,595

To Income Tax Expense $30,520

(Being expenses accounts are closed)

3. Income summary A/c Dr $70,200 ( $405,510 - $335,310)

To Retained earning $70,200

(Being the difference is credited to retained earning)

4. Retained earnings A/c Dr $17,785

To Dividend A/c $17,785

(Being dividend account is closed)