Answer:
(A)
income summary 728,776
cost of goods sold 509,030
adminsitrative expenses 183,720
income tax expense 36,026
to record close of expense account
(B)
revenues 822,958
income summary 822,958
to record close of revenues account
(C)
income summary 18,372
dividends 18,372
to record close of dividends account
(D)
income summary 75,810
retained earnings 75,810
to record close of income summary to retained earnings
Explanation:
(A)
expenses normal balance is debit, to close them, we credit them
(B)
revenues normal balance is credit, to closethem, we debit it.
(C) dividends normal balance is debit, we credit in order to close it.
(D) to close incom summary we will calcualte their balance:
debit for 728,776
debit for 18,732
credit for 822,598
balance 18,372 credit
to close we will debit against retained earnings.
