The adjusted trial balance of Armstrong Corporation at December 31 shows that sales revenue for the year was $ 520 comma 000 and other revenue was $ 47 comma 000. Cost of goods sold for that same period was $ 295 comma 000 , while other expenses totaled $ 200 comma 000. The corporation declared and paid dividends of $ 15 comma 000 during the year. The balance of retained earnings before closing entries was $ 490 comma 000. 1. Prepare the closing entries for revenues, expenses, and dividends for the year.

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Business

Kyan Holmes

22 August, 11:58

The adjusted trial balance of Armstrong Corporation at December 31 shows that sales revenue for the year was $ 520 comma 000 and other revenue was $ 47 comma 000. Cost of goods sold for that same period was $ 295 comma 000 , while other expenses totaled $ 200 comma 000. The corporation declared and paid dividends of $ 15 comma 000 during the year. The balance of retained earnings before closing entries was $ 490 comma 000. 1. Prepare the closing entries for revenues, expenses, and dividends for the year.

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Benton · Answer 1

Below are the closing entries for the relevant accounts:

1. Sales Revenue A/c Dr $520,000

Other revenue A/c Dr $47,000

To Income Summary $567,000

(Being revenue account closed)

2. Income summary A/c Dr $495,000

To Cost of goods sold A/c $295,000

To Other Expenses A/c $200,000

(Being expenses accounts are closed)

3. Income summary A/c Dr $72,000 ($597,000 - $495,000)

To Retained earning $72,000

(Being the difference is credited to retained earning)

4. Retained earnings A/c Dr $15,000

To Dividend A/c $15,000

(Being dividend account is closed)