The adjusted trial balance for China Tea Company at December 31,
2018, is presented below:
|Accumulated depreciation - equipment||144,000|
|Notes payable - due in three months||49,000|
|Costs of goods sold||275,000|
Prepare the closing entries for China Tea Company for the year ended December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the entry to close the revenue accounts using the income summary.
2. Record the entry to close the expense accounts using the income summary.
3. Record the entry to close the income summary account.
|Cost of goods sold||$275000|
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