Preparing Closing Entries

The following selected accounts and amounts are from the adjusted trial balance for Seattle Inc.

Sales	$192,500	Cost of goods sold	$92,750
Service revenue	3,500	Interest expense	7,000
Operating expenses	42,000	Dividends	19,250
Income tax expense	8,750

Required

Prepare the closing entries for revenues, expenses, and dividends. Use the Income Summary account to close income statement amounts.

General Journal
Account Name	Dr.	Cr.
	Answer	Answer
Service Revenue	Answer	Answer
	Answer	Answer
To close revenues to income summary
	Answer	Answer
Operating Expenses	Answer	Answer
Income Tax Expense	Answer	Answer
Costs of Goods Sold	Answer	Answer
AnswerRetained EarningsDividendsCommon StockInterest RevenueSalesService RevenueSalesService RevenueInterest ExpenseIncome Tax ExpenseOperating ExpensesIncome Summary	Answer	7,000
To close expenses to income summary
	Answer	Answer
	Answer	Answer
To close income summary to retained earnings
	Answer	Answer
	Answer	Answer
To close dividends to retained earnings