Question

the adjusted trial balance for china tea company at December 31 2018, is presented below
cash 11,300
account receivable 158,000
prepaid rent 5,800
inventory 33,000
equipment 380,000
accumulated depreciation- equipment 133,000
account payable.                                        38,000
notes payable- due in three months.      38,000
salaries payable.                                          4,800
interest payable                                          1,800
common stock.                                           240,000
retained earnings.                                      67,600
sales revenue.                                             480,000
costs of goods sold 220,000
salaries expense 128,000
rent expense 23,000
depreciation expense 38,000
interest expense 2,800
advertising expense 3,300
totals.                         1,003,200.               1,00,200
prepare the closing entries for china tea company for the year ended December 31 2018.(if no entry is required for a transaction/event select no journal entry required in the first account field.)
1record the entry to close the revenue accounts using the income summary.
2
record the entry to close the expense accounts using the income summary
3
record the entry to close the income summary account

Answer 1

Date	Account title	Debit	Credit
	Sales revenue	480,000
	Income summary		480,000
	(To close the revenue account)
	Income summary	415,100
	Cost of goods sold		220,000
	Salaries expense		128,000
	Rent expense		23,000
	Depreciation expense		38,000
	Interest expense		2,800
	Advertising expense		3,300
	(To close the expense account)
	Income summary (480,000-415,100)	64,900
	Retained earnings		64,900
	(To close income summary account)