Closing Entries

Use the following information for Lincoln Company to prepare closing entries. All accounts have normal balances. Not all accounts need to be closed. The account balances are for 12/31/22 before closing entries. SHOW CALCULATIONS

Accounts Payable. 39,000

Accounts Receivable 270,000

Accumulated Depreciation-Building 75,000

Accumulated Depreciation-Equipment. 60,000

Administrative Expenses. 60,000

Allowance for Doubtful Accounts 30,000

Bonds Payable.. 270,000

Building 750,000

Cash. 39,000

Common Stock 624,000

Cost of Goods Sold. 570,000

Discount on Bonds Payable 10,000

Dividends 20,000

Equipment 290,000

Loss from Operations of Division X... 60,000

(Division X is a component of Lincoln)

Income Tax Expense 450,000

Interest Revenue.. 40,000

Inventory...420,000

Land (held for future use).... 300,000

Land (used for building).. 165,000

Gain on Sale of Division X...............................120,000

(Division X is a component of Lincoln)

Loss on Sale of Investments... .. 15,000

Mortgage Payable ... 375,000

Prepaid Insurance. 15,000

Retained Earnings, January 1, 2022 375,000

Sales Discounts 250,000

Sales Returns and Allowances 100,000

Sales Revenue...1,600,000

Selling Expenses. 195,000

Trademark 45,000