The following information is available for Potts Company: Debit Credit Potts, Capital $ 50,000 Potts, Drawing $ 32,000 Sales 510,000 Sales Returns and Allowances 20,000
The following information is available for Potts Company:
Debit Credit
Potts, Capital $ 50,000
Potts, Drawing $ 32,000
Sales 510,000
Sales Returns and Allowances 20,000
Sales Discounts 7,000
Cost of Goods Sold 347,000
Freight-out 2,000
Advertising Expense 15,000
Interest Expense 19,000
Store Salaries Expense 45,000
Utilities Expense 18,000
Depreciation Expense 7,000
Interest Revenue 25,000
Instructions: Using the above information, prepare the closing entries for Potts Company.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To prepare the closing entries for Potts Company we need to close temporary accounts such as revenues and expenses to the income summary account At th...
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
Authors: Priti Sikdar
1st Edition
036756792X, 978-0367567927
