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Presented below is income statement information of the Schefter Corporation for the year ended December 31, 2021. Sales revenue $ 528,000 Salaries expense 87,800 Interest revenue 7,200 Advertising expense 12,000 Gain on sale of investments 9,800 Cost of goods sold 290,400 Insurance expense 15,200 Interest expense 4,100 Income tax expense 44,000 Depreciation expense 26,000 Required: Prepare the necessary closing entries at December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Respuesta :

Answer:

Explanation:

The closing entry for the following accounts are shown below:

1. Sales Revenue A/c Dr $528,000

   Interest revenue A/c Dr  $7,200

  Gain on sale of investments Dr $9,800

                                                To Income Summary $545,000

(Being revenue account closed)

2. Income summary A/c Dr $479,500

                    To Salaries Expense $87,800

                    To Advertising Expense $12,000

                    To Cost of goods sold $290,400

                    To Insurance expense $15,200

                    To Interest expense $4,100

                    To Income tax expense $44,000

                    To Depreciation expense 26,000

(Being expenses accounts are closed)

3. Income summary A/c Dr $65,500

                               To Retained earning $65,500

(Being the difference is credited to retained earning)

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