The following is the adjusted trial balance taken from the books of Nike Co. on Dec. 31, 2017.

Income tax is 30%

Account Debit Credit

Cash $10,000

Accounts receivable 40,000

Allowance for doubtful accounts $ 2,000

Inventory, 12/31, 2017 50,000

Furniture and equipments 250,000

Accumulated depreciation 120,000

Accounts payable 68,000

Common stock 60,000

Retained earnings 20,000

Dividends 30,000

Sales 400,000

Rental revenue 50,000

Purchase 260,000

Salary expense 90,000

Insurance Expense 20,000

Rent expense 30,000

Totals 750,000 750,000

Instruction:

Prepare any necessary journal entry for income taxes.

Prepare closing entries of Nike Co. for the year 2017.