Chapter 5, Problem 5.7SE

Journalizing closing entries

Rockwall RV Center’s accounting records include the following accounts at December 31, 2016.

Cost of Goods Sold	$368,000
Accounts Payable	20,000
Rent Expense	23,000
Building	115,000
Common Stock	132,000
Retained Earnings	46,400
Merchandise Inventory	238,400
Sales Returns and Allowances	40,000
Notes Receivable	37,000
Accumulated Depreciation-Building	$40,000
Cash	54,00
Sales Revenue	710,000
Depreciation Expense-Building	16,000
Dividends	55,000
Sales Discounts	6,000
Interest Revenue	4000

Requirements

1. Journalize the required closing entries for Rockwall.

2. Determine the ending balance in the Retained Earnings account.