Question

The December 31, 2019 adjusted trial balance for Camptown Company is shown below.

	Debit	Credit
Cash	$12,600
Accounts receivable	2,400
Prepaid rent	800
Inventory	28,000
Accounts payable		$4,200
Salary payable		1,000
Notes payable		800
Capital		13,800
Drawing	1,000
Sales revenue		96,000
Sales returns and allowances	1,600
Sales discounts	400
Cost of goods sold	25,000
Salary expense	21,000
Rent expense	22,500
Supplies expense	500
Total	$115,800	$115,800

Using the information above prepare an income statement in single-step format and the closing entries for Camptown Company.

Answer 1

Single step income statement

Revenue
Sales revenue		96000
Expense
Sales return and allowance	1600
Sales discount	400
Cost of goods sold	25000
Salary expense	21000
Rent expense	22500
Supplies expense	500
Total expense		71000
Net income		25000

Closing entries

No	General Journal	Debit	Credit
1	Sales revenue	96000
	Income summary		96000
	(To close revenue)
2	Income summary	71000
	Sales return and allowance		1600
	Sales discount		400
	Cost of goods sold		25000
	Salary expense		21000
	Rent expense		22500
	Supplies expense		500
	(To close expense)
3	Income summary	25000
	Capital		25000
	(To close income summary)
4	Capital	1000
	Drawing		1000
	(To close drawing)