Question

The adjusted trial balance of Antoine Corporation at December 31 shows that sales revenue for the year was $ 520 comma 000 and other revenue was $ 49 comma 000. Cost of goods sold for that same period was $ 280 comma 000​, while other expenses totaled $ 210 comma 000. The corporation declared and paid dividends of $ 18 comma 000 during the year. The balance of retained earnings before closing entries was $ 490 comma 000. Read the requirements LOADING.... 1. Prepare the closing entries for​ revenues, expenses, and dividends for the year. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.) Begin by recording the entry to close out the revenue accounts.

Answer 1

Step-by-step explanation:

The closing entries for the following accounts are shown below:

1. Sales Revenue A/c Dr $520,000

Other revenue A/c Dr $49,000

To Income Summary A/c $569,000

(Being revenue account closed)

2. Income Summary A/c Dr $490,000

To Cost of goods sold $280,000

To other expenses $210,000

(Being expenses accounts are closed)

3. Income summary A/c Dr $79,000 ($569,000 - $490,000)

To Retained earning $79,000

(Being the difference is credited to retained earning)

4. Retained earnings A/c Dr $18,000

To Dividend A/c $18,000

(Being dividend account is closed)