Question

Prepare Closing Entries

Cash      162,985.00        -  

Accounts receivable        124,661.50        -  

Allowance for doubtful accounts               -             3,425.57

Inventory            20,670.00           -  

Supplies               11,550.00           -  

Prepaid insurance            -             -  

Prepaid expense, other -             -  

P,P & E –Store Equipment            278,000.00        -  

Accumulated depreciation – Store Equipment     -             35,600.00

P,P & E –Office Equipment           25,000.00           -  

Accumulated depreciation – Office Equipment    -             10,000.00

P,P & E – Building             617,500.00        -  

Accumulated depreciation – building       -             61,750.00

                -             -  

Accounts payable             -             80,900.00

Accrued expenses           -             4,125.00

Salaries payable -             -  

Interest payable               -             24,999.67

Fed Income tax withheld               -             20,800.00

State Income tax withheld           -             7,800.00

FICA tax withheld             -             7,956.00

FICA tax liability -             7,956.00

Sales tax liability                -             31,679.10

Short-term notes payable            -             70,000.00

Notes payable   -             250,000.00

                -             -  

Common stock -             100,000.00

Capital in excess of par -             400,000.00

Retained earnings            -             94,270.00

Dividends            -             -  

Sales Revenue -             1,446,640.00

Purchases           -             -  

Cost of goods sold            777,434.00        -  

Salary expense 416,000.00        -  

Benefits expense             36,750.00           -  

Supplies expense             21,750.00           -  

Insurance expense          24,000.00           -  

Utilities expense              6,460.00             -  

Travel expenses 4,800.00             -  

Advertising expenses     3,746.00             -  

Interest expense              25,000.00           -  

Depreciation expense    53,675.00           -  

Consulting expenses      9,170.00             -  

Bank fees            5,000.00             -  

Bad debt expense           1,925.57             -  

FICA tax expense             31,824.00          

Income Summary             -             -  

Totals    $2,657,901        $2,657,901

Answer 1

Date	Title and explanation	Debit	Credit
	Sales revenue	$ 1,446,640.00
	Income summary		$ 1,446,640.00
	(To close revenue account)
	Income summary	$ 1,417,534.57
	Cost of goods sold		$      777,434.00
	Salary expense		$      416,000.00
	Benefit expense		$        36,750.00
	Supplies expense		$        21,750.00
	Insurance expense		$        24,000.00
	Utilities expense		$          6,460.00
	Travel expense		$          4,800.00
	Advertising expense		$          3,746.00
	Interest expense		$        25,000.00
	Depreciation expense		$        53,675.00
	Consulting expense		$          9,170.00
	Bank fees		$          5,000.00
	Baddebt expense		$          1,925.57
	FICA tax expense		$        31,824.00
	(To close expenses accounts)
	Income summary $1,446,640-$1,417,534.57)	$        29,105.43
	Retained earnings		$        29,105.43
	(To close income summary account)

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