Presented below are selected account balances for Homer Winslow Co as of December 31, 2014. Instructions: Prepare closing entries

Offered under are chosen account balances for Homer Winslow Co as of December 31, 2014. Directions: Put together closing entries for Homer Winslow Co on December 31,2014. (Omit explanations) Stock 12/31/14 $60,000 Price of Items Bought $225,700 Frequent Inventory 75,000 Promoting Bills 16,000 Retained Earnings 45,000 Administrative Bills 38,000 Dividends 18,000 Earnings Tax Expense 30,000 Gross sales Returns and Allowances 12,000 Gross sales Reductions 15,000 Gross sales Income 410,000

Gross sales Income 410,000 debit         Earnings Abstract    410,000 credit score –to shut revenues accounts– Earnings Abstract               95,000 debit       Administrative Bills          38,000  credit score       Earnings Tax Expense                30,000  credit score       Gross sales Returns and Allowances 12,000  credit score       Gross sales Reductions                         15,000 credit score –to shut bills and other– Earnings Abstract     18,000 debit Dividends                                   18,000 credit score –to shut dividends– Earnings abstract    297,000 debit    Retained Earnings      297,000 credit score –to shut the revenue abstract in opposition to RE– Clarification: We’ve got to shut in opposition to revenue abstract he momentary accounts: To shut this accounts we have to publish them of their reverse facet of the conventional steadiness. Revenues shall be debited whereas bills credited. Ultimately, we clear up for the revenue abstract steadiness and shut it in opposition to retained earnings 410,000 – 95,000 – 18,000 = 297,000

Also Read :   Financial managers should strive to maximize the current value per share of the existing stock because: Select one: a. doing so guarantees

reply; mental property safety;

The reply is dialectical inquiry

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