Need part b) solved. Closing entries.
Answer to a) attached
The following accounts were taken from the records of Best Company on the year end (December 31, 2019) after adjusting entries being recorded and posted; all accounts have normal balances: Account payables $ 5,200 Account receivables 6,400 Cost of goods sold 8,300 Capital stock 18,700 Cash 5,400 Sales Revenue 24.800 Land 15.000 Salaries expense 3,000 Insurance expense 1.300 Salaries payable 1,000 Interest expense 980 Rent expense 1,000 Utilities expense 720 Income Tax Expense 1,000 Income Tax Payable 400 Investment (long-term) in ZYX, Inc shares 5,700 Depreciation Expense-Equipment 2,400 Sales Discounts 1,000 Accumulated Depreciation-Equipment 3,600 Inventory 8,000 Bonds Payable (Due in ten years) 16,500 Retained Earnings (January 1, 2019) 2,500 Dividends Equipment 12,000 Additional information: Total assets (end of the year) Total assets (beginning of the year) 47.100 70% of operating expenses are Selling expenses and 30% of the operating expenses are General and administrative expenses. Number of share outstanding during the year is 5,100. No new shares were issued during the year. The stock was selling at $10 per share at the year end. No additional entries are required. REQUIREMENT: (Show your detailed work) (a) Prepare Classified Balance Sheet, Multiple-Step Income Statement and Statement of Retained Earnings of Best Company using the proper format and all the required accounting conventions. (b) Prepare the closing entries for Best Company. 7:13 Income statement Best company For the year ended Dec 31,2019 24500 1000 23811 8300 13500 (Noxe: ) 5894 Sites revenue Less: Sales discounts Net sales Less: Cost of goods sold Gross grolit Less: Operating expenses Selling expenses General and administrative expenses Total operating expenses Operating in one Other items: Interest expense Income before tax Less: income tax expense Net incomo 8420 7050 -980 6100 1000 5100 NE Operating expenses 3000 1300 Salaries exponse Insurance expense Rent expense Utilities expense Depreciation expense-Equipment 1000 720 24600 Total 1420 Selling expensen-H420 70%-S 5894 General and administrutive expenses-8420*30%-$2526 Balance sheet Best company As on Dec 31,2019 Current Assets S000 19800 S700 15001 12000 0 2340 48910 Account courables Inventory Total ciment assets Lonplermasses Investment in ZYX.Inc shares Property.plant and equipment: Land Equipment Less: Accumulnted derecintion Equipment (net) Total property.plant and quiet Total Liabilities and lxkholder's Current liabilities: Account payable Salaries payable Incone tax payable Total current liabilities Lax-term liabilities: Bonds payable Stockholder's quity: Capital stock Retained earnings Total stockholders equity Total liabilities and stockholder's equiry quity 3200 1000 100 6500 165010 Balancing figure) 18700 7100 25800 4840 Statement of retained carnes: 2500 Reginning halance Add: Nat income Less:Dividends Ending balance S100 760 (Note:2) 500 7100 No:2 Dividends paid 2500 Beginning balance Aild: Net income 5100 7600
