Closing Entries On July 31, the close of the fiscal year, the balances of the accounts...

Closing Entries

On July 31, the close of the fiscal year, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a furniture wholesaler, are as follows:

Accumulated Depreciation—Building	$365,000	Inventory	$115,000
Administrative Expenses	440,000	Notes Payable	100,000
Building	810,000	Retained Earnings	455,000
Cash	78,000	Sales	1,437,000
Common Stock	75,000	Sales Tax Payable	4,500
Cost of Goods Sold	775,000	Selling Expenses	160,000
Dividends	15,000	Store Supplies	16,000
Interest Expense	6,000	Store Supplies Expense	21,500

Prepare the July 31, 2018, closing entries for Serbian Interiors Company in the order as presented in the chapter.

Solutions

Expert Solution

July 31	Sales	1437000
	Income Summary		1437000

July 31	Income Summary	1402500
	Administrative Expenses		440000
	Cost of Goods Sold		775000
	Interest Expense		6000
	Selling Expenses		160000
	Store Supplies Expense		21500

July 31	Income Summary	34500		=1437000-1402500
	Retained Earnings		34500

July 31	Retained Earnings	15000
	Dividends		15000

ekkarill92 answered 2 years ago

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