Question

The following information is available for Moiz Company:________.

Debit Credit
Common Stock $30,000
Retained Earnings 20,000
Dividends $30,000
Sales Revenue 510,000
Sales Returns and Allowances 20,000
Sales Discounts 7,000
Cost of Goods Sold 310,000
Freight-Out 2,000
Advertising Expense 15,000
Interest Expense 19,000
Salaries and Wages Expense 55,000
Utilities Expense 18,000
Depreciation Expense 7,000
Interest Revenue 23,000
Using the above information, prepare the closing entries for Moiz Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Answer and Explanation:

1. Interest Revenue $23,000

Sales Revenue $510,000

To Income Summary $533000

(Being closing of revenues accounts are closed)

2. Income Summary $453,000

To Sales returns $20,000

To Sales Discounts $7,000

To Cost Of goods sold $310,000

To Freight out $2,000

To Advertise Exp $15,000

To Interest Exp $19,000

To Salaries & Wages $55,000

To Utility $18,000

To Depreciation $7,000

(Being closing of expenses accounts are closed)

3. Income Summary $80,000

To Retained Earning $80,000

(Being profit is recorded)

4. Retained Earning $30,000

To Dividends $30,000

(Being closing of dividend is recorded)