Question

Exercise 3-14 Presented below is information related to Pronghorn Corporation for the month of January 2017. Cost of goods sold $192,390 Salaries and wages expense $65,800 Delivery expense 7,620 Sales discounts 8,440 Insurance expense 11,850 Sales returns and allowances 12,030 Rent expense 18,830 Sales revenue 319,900 Prepare the necessary closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Answer 1

Answer:

Explanation:

The closing entry for the following accounts are shown below:

1. Sales Revenue A/c Dr $319,900

      To Income Summary $319,900

(Being revenue account closed)

2. Income summary A/c Dr $316,960

             To Cost of goods sold   $192,390

             To Delivery Expense $7,620

             To Salaries and Wages Expense $65,800

             To Insurance Expense $11,850

             To  Sales returns and allowances $12,030

             To Rent Expense $18,830

             To Sales discounts $8,440

(Being expenses accounts are closed)

3. Income summary A/c Dr $2,940 ($319,900 - $316,960)

        To Retained earning $2,940

(Being the difference is credited to retained earning)