Answer and Explanation:
The closing entries are as follows
1. Sales Revenue A/c Dr $405,210
To Income Summary $405,210
(Being revenue account closed)
2. Income summary A/c Dr $332,466
To Cost of Goods Sold $222,005
To Selling Expenses 15,964
To Administrative Expenses $37,422
To Income Tax Expense 30,070
To Sales Returns and Allowances 11,865
To Sales Discounts 15,140
(Being expenses accounts are closed)
3. Income summary A/c Dr $72,744
To Retained earning $72,744
(Being the difference is credited to retained earning)
4. Retained earnings A/c Dr $18,160
To Dividend A/c $18,160
(Being dividend account is closed)
