Accumulated Depr.—Building $142,000 Notes Payable $ 125,000
Administrative Expenses 300,000 Sales 1,375,000
Building 446,000 Sales Discounts 20,000
Cash 60,000 Sales Returns and Allow. 13,000
Cost of Merchandise Sold 650,000 Sales Tax Payable 3,000
Interest Expense 10,000 Selling Expenses 140,000
Jordan Davenport, Capital 180,000 Store Supplies 23,000
Jordan Davenport, Drawing 25,000 Store Supplies Expense 12,000
Merchandise Inventory 126,000
Prepare the October 31, 2014, closing entries for Acorn Interiors Company.
Answer:
2014 Closing Entries
Oct. 31 Sales 1,375,000
Income Summary 1,375,000
31 Income Summary 1,145,000
Administrative Expenses 300,000
Cost of Merchandise Sold 650,000
Interest Expense 10,000
Sales Discounts 20,000
Sales Returns and Allowances 13,000
Selling Expenses 140,000
Store Supplies Expense 12,000
31 Income Summary 230,000
Jordan Davenport, Capital 230,000
31 Jordan Davenport, Capital 25,000
Jordan Davenport, Drawing 25,000