Question 3 (A) (7.5 marks)

The following financial information has been collected for Forest Ltd for the month of December 2020.

Accounts	Balance
Cash	45,250
Inventory	88,750
Prepaid expenses	3,560
interest expense	1,200
Interest revenue	2,650
Sales revenue	880,500
Insurance expense	32,000
Supplies	4,560
Supplies expense	6,340
Owner's drawings	3,500
salary expense	25,400
COGS	560,800
Unearned revenue	25,700

Required: Calculate in the net income of Forest Ltd for the Month ending December 31, 2020.

Question 3 (B) (7.5 marks)

ABB company has the below information in its Income Statement at the end of the year 2021. For recording the closing entries, Income Summary account is created and used.

• Salaries Expenses $34,800
• Utilities Expenses $8,500
• Depreciation Expense $4,500
• Owners drawings $3,000
• Owners capital $105,000
• service revenue $345,600

Based on the above information, provide the closing entries.