Question

Presented below is information related to Headland Corporation for the month of January 2017.

Cost of goods sold $221,450
Salaries and wages expense $62,960
Delivery expense 6,300
Sales discounts 8,320
Insurance expense 11,900
Sales returns and allowances 12,540
Rent expense 18,370
Sales revenue 364,700
Required:
1. Prepare the necessary closing entries.

Answer 1

Step-by-step explanation:

The above stated accounts are closed into the statement of Income and expenditure account

Account Title Dr Cr

$ $

Cost of goods sold 221,450

Salaries & wages 62,960

Delivery Expenses 6,300

Sale Discount 8,320

Insurance Expenses 11,900

Sales Return & Allowances 12,540

Rent Expenses 18,370

Income summary 341,840

Sales Revenue 364,700

Income summary 364,700