Question

The following is a list of accounts and adjusted amounts for Rollcom, Inc., for the fiscal year ended September 30, 2018. The accounts have normal debit or credit balances.

Accounts Payable $39,100
Accounts Receivable 66,500
Accumulated Depreciation 21,500
Cash 80,300
Common Stock 94,800
Equipment 90,700
Income Tax Expense 10,500
Notes Payable (long-term) 1,500
Office Expenses 6,300
Rent Expense 164,200
Retained Earnings 99,900
Salaries and Wages Expense 128,700
Sales Revenue 325,600
Supplies 35,200
Prepare the closing entry required at September 30, 2018.

Answer 1

30-Sep-18

Dr Sales revenue 325,600

Cr Income tax expense 10,500

Cr Office expenses 6,300

Cr Rent expense 164,200

Cr Salaries and wages expense 128,700

Retained earnings $15,900

Step-by-step explanation:

Preparation of the closing entry required at September 30, 2018

30-Sep-18

Dr Sales revenue 325,600

Cr Income tax expense 10,500

Cr Office expenses 6,300

Cr Rent expense 164,200

Cr Salaries and wages expense 128,700

Retained earnings $15,900

(325,600-10,500-6,300-164,200-128,700)

(To record closing entries)