Requirement 1. Journalize the required closing entries at

March 31, 2018.

(Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Start by closing revenues. Do not close expenses or contra-revenue accounts; we will do this in the next step.

Date	Accounts and Explanation	Debit	Credit
Mar. 31	Sales Revenue	239,000
Clos. (1)	Income Summary		239,000
			To close revenues.

Part 2

Close expenses and other temporary accounts for the period.

Date	Accounts and Explanation	Debit	Credit
Mar. 31	Income Summary	150,350
Clos. (2)	Cost of Goods Sold		107,550
			Selling Expense		26,600
			Administrative Expense		14,300
			Interest Expense		1,900
			To close expenses.

Part 3

Close Income Summary.

Date	Accounts and Explanation	Debit	Credit
Mar. 31	Income Summary	88,650
Clos. (3)	Retained Earnings		88,650
			To close Income Summary.

Part 4

Close Dividends.

Date	Accounts and Explanation	Debit	Credit
Mar. 31	Retained Earnings	44,500
Clos. (4)	Dividends		44,500
			To close Dividends.

Part 5

Requirement 2. The following T-accounts have been set up: Income Summary; Retained Earnings; and Dividends. Post the closing entries to the T-accounts and calculate their ending balances.

Use "Clos." and the corresponding number as shown in the journal entry as posting

references"Clos.(1)",

"Clos.(2)", etc. The adjusted balance of each account has been entered for you. For any accounts with a zero balance after closing, enter a "0" on the normal side of the account. For Income Summary, calculate and enter the balance ("Bal.") before posting the entry to close out the account. Post the entry to close Income Summary account on the line after the balance prior to closing (the third line) and then show the post-closing balance ("Bal.") on the last (fourth) line of the account.

Review the closing journal entries you prepared above.

LOADING...

Dividends

Retained Earnings

Income Summary

Adj. Bal.

44,500

11,250

Adj. Bal.

Bal.

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Closing Journal Entries

Date	Accounts and Explanation	Debit	Credit
Mar. 31	Sales Revenue	239,000
Clos. (1)	Income Summary		239,000
			To close revenues.

Mar. 31	Income Summary	150,350
Clos. (2)	Interest Expense		1,900
			Administrative Expenses		14,300
			Cost of Goods Sold		107,550
			Selling Expenses		26,600
			To close expenses and other debit accounts.

Mar. 31	Income Summary	88,650
Clos. (3)	Retained Earnings		88,650
			To close Income Summary.

Mar. 31	Retained Earnings	44,500
Clos. (4)	Dividends		44,500
			To close Dividends.