Question

Presented below is information related to Headland Corporation for the month of January 2017.
Cost of goods sold $221,450
Salaries and wages expense $62,960
Delivery expense 6,300
Sales discounts 8,320
Insurance expense 11,900
Sales returns and allowances 12,540
Rent expense 18,370
Sales revenue 364,700
Required:
1. Prepare the necessary closing entries.

Answer 1

Answer:

Explanation:

The above stated accounts are closed into the statement of Income and expenditure account

Account Title                                  Dr                              Cr

                                                          $                                $

Cost of goods sold                                                      221,450

Salaries & wages                                                          62,960

Delivery Expenses                                                          6,300

Sale Discount                                                                   8,320

Insurance Expenses                                                        11,900

Sales Return & Allowances                                             12,540

Rent Expenses                                                                  18,370

Income summary                             341,840

Sales Revenue                                364,700

Income summary                                                             364,700