unit 8 learning act

Novak Company had the following account balances at year-end: Cost of Goods Sold $60,870; Inventory $18,070; Operating Expenses $32,660; Sales Revenue $123,390; Sales Discounts $1,030; and Sales Returns and Allowances $1,930. A physical count of inventory determines that merchandise inventory on hand is $12,840.

Account Titles and Explanation Debit Credit

Cost of Good Sold 5,230

Inventory 5,230

Closing entries:

Account Titles and Explanation Debit Credit

__________________________ ______ ______

__________________________ ______ ______

(To close accounts with credit balances)

__________________________ ______ ______

__________________________ ______ ______

__________________________ ______ ______

__________________________ ______ ______

__________________________ ______ ______

(To close accounts with debit balances)

__________________________ ______ ______

__________________________ ______ ______

(To close net income / (loss))