Question

Presented below is income statement information of the Nebraska Corporation for the year ended December 31, 2018.

Sales revenue		860,000		Cost of goods sold		455,000
Salaries expense		110,000		Insurance expense		40,000
Dividend revenue		5,000		Depreciation expense		38,000
Miscellaneous expense		32,000		Income tax expense		55,000
Loss on sale of investments		10,000		Rent expense		30,000

Required:
Prepare the necessary closing entries at 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 and losses 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.

Date	General Journal	Debit	Credit
Dec 31, 2018
Dec 31, 2018
Dec 31, 2018

Answer 1

31-Dec-18	Sales revenue	860000
	Dividend revenue	5000
	Income summary		865000
31-Dec-18	Income summary	770000
	Salaries expense		110000
	Miscellaneous expense		32000
	Loss on sale of investments		10000
	Cost of goods sold		455000
	Insurance expense		40000
	Depreciation expense		38000
	Income tax expense		55000
	Rent expense		30000
31-Dec-18	Income summary	95000
	Retained earnings		95000