Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Journalize the closing entries that are necessary. The Deluxe Store is located in midtown Madison. During the past several years, net income has been declining
Journalize the closing entries that are necessary.
The Deluxe Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company's fiscal year on November 30, 2022, the following accounts appeared in two of its trial balances. All accounts balances are normal. Adjusted Adjusted Unadjusted $ 25,200 $ 25,200 Unadjusted $ 29,000 37,000 Accounts Payable Accounts Receivable Accumulated Depr.--Equipment $ 29,000 30,500 30,500 37,000 Inventory Notes payable Prepaid Insurance Property Tax Expense 34,000 45,000 10,500 3,500 Cash 26,000 26,000 2,500 Common Stock 40,000 40,000 Property Taxes Payable 2,500 Cost of Goods Sold 507.000 507,000 Rent Expense 15,000 15,000 Dividends 10,000 10,000 61,700 61,700 Freight-Out 6,500 6,500 96,000 96,000 Retained Earnings Salaries and Wages Expense Sales Commissions Expense Sales Commissions Payable 146,000 146,000 6,500 11,000 Equipment Depreciation Expense 11,000 4,500 Insurance Expense 7,000 Sales Returns and Allowances 8.000 8.000 Interest Expense 6,400 6,400 Sales Revenue 700.000 700,000 Interest Revenue 8,000 8,000 Utilities Expense 8,500 8,500 Journalize the closing entries that are necessary. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Nov. 30 (To close accounts with credit balances) Nov. 30 (To close' accounts with debit balances) Nov. 30 (To close net income / (loss)) Nov. 30 (To close dividends) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started