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Preparation of closing entries for sparrow at Dec 31, 2019:
Date | General Journal | Debit | Credit |
Dec 31 | Revenues | $99600 | |
Income summary | $99600 | ||
(To record closing of revenues) | |||
Dec 31 | Income summary | $79200 | |
Salaries expense | $49400 | ||
Rent expense | $17250 | ||
Insurance expense | $2200 | ||
Depreciation expense | $4950 | ||
Income tax expense | $5400 | ||
(To record closing of expenses) | |||
Dec 31 | Income summary ($99600-$79200) | $20400 | |
Retained Earnings | $20400 | ||
(To record closing of income summary) | |||
Dec 31 | Retained Earnings | $10500 | |
Dividends | $10500 | ||
(To record closing of dividends) |
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