Question

On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows:

Accumulated Depreciation—Building	$ 300,000
Administrative Expenses	216,000
Building	1,000,000
Cash	70,000
Cost of Merchandise Sold	1,520,000
Interest Expense	4,000
Kathy Melman, Capital	634,800
Kathy Melman, Drawing	70,000
Merchandise Inventory	392,000
Notes Payable	100,000
Office Supplies	8,000
Salaries Payable	3,200
Sales	2,564,000
Selling Expenses	286,000
Store Supplies	36,000

Journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Racine Furnishings Company

General Ledger

	ASSETS
110	Cash
130	Merchandise Inventory
140	Office Supplies
141	Store Supplies
190	Building
191	Accumulated Depreciation-Building

	LIABILITIES
216	Salaries Payable
221	Notes Payable

	EQUITY
310	Kathy Melman, Capital
311	Kathy Melman, Drawing
312	Income Summary

	REVENUE
410	Sales

	EXPENSES
510	Cost of Merchandise Sold
523	Depreciation Expense
526	Salaries Expense
539	Selling Expenses
540	Administrative Expenses
710	Interest Expense

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Closing Entries
2
3
4
5
6
7
8
9

Answer 1

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Mar. 31	Sales	410	2564000				-2564000
2		Cost of Merchandise Sold	510		1520000			1520000
3		Selling Expenses	539		286000			286000
4		Administative Expenses	540		216000			216000
5		Interest Expense	710		4000			4000
6		Income Summary	312		538000			538000
7	Mar. 31	Income Summary	312	538000				-538000
8		Kathy Melman, Capital	310		468000			468000
9		Kathy Melman, Drawing	311		70000			70000