Closing Entries

On July 31, the close of the fiscal year, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a furniture wholesaler, are as follows:

Accumulated DepreciationBuilding $365,000 Inventory $115,000

Administrative Expenses 440,000 Notes Payable 100,000

Building 810,000 Retained Earnings 455,000

Cash 78,000 Sales 1,437,000

Common Stock 75,000 Sales Tax Payable 4,500

Cost of Goods Sold 775,000 Selling Expenses 160,000

Dividends 15,000 Store Supplies 16,000

Interest Expense 6,000 Store Supplies Expense 21,500

Prepare the July 31, 2018, closing entries for Serbian Interiors Company in the order as presented in the chapter.