The adjusted trial balance of Antoine Corporation at December 31 shows that sales revenue for the year was $ 540,000 and other revenue was $ 49,000. Cost of goods sold for that same period was $ 290,000 , while other expenses totaled $ 230,000. The corporation declared and paid dividends of $ 14, 000 during the year. The balance of retained earnings before closing entries was $ 475,000. Prepare the closing entries for revenues, expenses, dividends for the year. (Record debits first, then credits. Exclude explainations from any. Begin by recording the entry to close out the revenue accounts)

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Business

Jayvion Wilson

16 January, 04:45

The adjusted trial balance of Antoine Corporation at December 31 shows that sales revenue for the year was $ 540,000 and other revenue was $ 49,000. Cost of goods sold for that same period was $ 290,000 , while other expenses totaled $ 230,000. The corporation declared and paid dividends of $ 14, 000 during the year. The balance of retained earnings before closing entries was $ 475,000. Prepare the closing entries for revenues, expenses, dividends for the year. (Record debits first, then credits. Exclude explainations from any. Begin by recording the entry to close out the revenue accounts)

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Ralph Chambers · Answer 1

sales revenue 540,000

other revenue 49,000

income summary 589,000

to close revenue accounts

income summary 520,000

COGS 290,000

other expenses 230,000

to close expense accounts

income summary 14,000

dividends 14,000

to close dividends expense

income summary 55,000

Retained Earnings 55,000

Explanation:

We use incomme summary to close the temporary accounts.

The revenues has credit normal balance, so we debit them to close them.

The expenses has debit normal balance so we credit to close them.

We do this using the income summary account to balance the entries.

We also close dividends account against Income Summary

Finally we move the balance of income summary to retained earnings