Chapter 3, Problem 3.17S

LO 5

(Learning Objective 5: Make closing entries and calculate net income) The adjusted trial balance of Amana Corporation at December 31 shows that sales revenue for the year was $513,000 and other revenue was $37,000. Cost of goods sold for that same period was $256,000. while other expenses totaled $185,000. The corporation declared and pa d dividends of $12,000 during the year. The balance of retained earnings before closing entries was $457,000.

1. 1. Prepare the closing entries for revenues, expenses, and dividends for the year.
2. 2. What was net income for the year?
3. 3. What is the ending balance of retained earnings after the closing entries are posted?