Prepare the entries that should be made in the general journal to close the revenue, cost of goods sold, expense, and other temporary accounts.On December 31, 20X1, the Income Statement columns of the worksheet for Jim’s Music Emporium contained the following information.Income Statement ColumnsDebitCreditIncome Summary$ 38,000$ 41,300Sales 251,500Sales Returns and Allowances3,600 Sales Discounts2,600 Interest Income 140Purchases133,800 Freight In1,900 Purchases Returns and Allowances 1,700Purchases Discounts 1,470Rent Expense8,200 Utilities Expense2,870 Telephone Expense1,480 Salaries Expense65,500 Payroll Taxes Expense5,210 Supplies Expense1,640 Depreciation Expense2,200 Interest Expense280 Totals$ 267,280$ 296,110Assume further that the owner of the firm is Jim Landis and that the Jim Landis, Drawing account had a balance of $25,900 on December 31, 20X1.

A closing entry is where the temporoary accounts are closed at the end of the period by moving the…

Answered: 20X1, the Income Statement columns of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare the entries that should be made in the general journal to close the revenue, cost of goods sold, expense, and other temporary accounts.

On December 31, 20X1, the Income Statement columns of the worksheet for Jim’s Music Emporium contained the following information.

Income Statement Columns	Debit	Credit
Income Summary	$ 38,000	$ 41,300
Sales		251,500
Sales Returns and Allowances	3,600
Sales Discounts	2,600
Interest Income		140
Purchases	133,800
Freight In	1,900
Purchases Returns and Allowances		1,700
Purchases Discounts		1,470
Rent Expense	8,200
Utilities Expense	2,870
Telephone Expense	1,480
Salaries Expense	65,500
Payroll Taxes Expense	5,210
Supplies Expense	1,640
Depreciation Expense	2,200
Interest Expense	280
Totals	$ 267,280	$ 296,110

Assume further that the owner of the firm is Jim Landis and that the Jim Landis, Drawing account had a balance of $25,900 on December 31, 20X1.

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