Question

3-4) Presented below are selected account balances for Pina Co. as of December 31, 2017.

Inventory 12/31/17		$59,970		Cost of Goods Sold		$223,818
Common Stock		75,590		Selling Expenses		16,076
Retained Earnings		44,340		Administrative Expenses		38,613
Dividends		18,040		Income Tax Expense		29,780
Sales Returns and Allowances		11,773
Sales Discounts		14,780
Sales Revenue Prepare closing entries for Pina Co. on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)		402,900

Answer 1

Prepare closing entries for Pina Co. on December 31, 2017.

Date	account and explanation	debit	credit
Dec 31,2017	Sales Revenue	402900
	Income summary		402900
	(To close revenue account)
Dec 31, 2017	Income summary	334840
	Sales Returns and Allowances		11773
	Sales Discounts		14780
	Cost of Goods Sold		223818
	Selling Expenses		16076
	Administrative Expenses		38613
	Income Tax Expense		29780
	(To close expense account)
Dec 31,2017	Income summary	68060
	Retained earnings		68060
	(To close income summary account)
Dec 31,2017	Retained earnings	18040
	Dividend		18040
	(To close dividend account)