Chapter 2, Problem 2.13E

Closing entries

• LO2–7

American Chip Corporation’s fiscal year-end is December 31. The following is a partial adjusted trial balance as of December 31, 2018.

Account Title	Debits	Credits
Retained earnings		80,000
Sales revenue		750,000
Interest revenue		3,000
Cost of goods sold	420,000
Salaries expense	100,000
Rent expense	15,000
Depreciation expense	30,000
Interest expense	5,000
Insurance expense	6,000

Required:

Prepare the necessary closing entries at December 31, 2018.