The year-end adjusted trial balance of the Timmons Tool and Die Corporation included the following account balances: retained earnings, $265,000; sales revenue, $880,000; cost of goods sold, $580,000; salaries expense, $155,000; rent expense, $49,000; and interest expense, $24,000.1. Close the revenue accounts as necessary2. Close the expense accounts as necessary3. Close net income

Question

Benton

Business

7 March, 07:00

The year-end adjusted trial balance of the Timmons Tool and Die Corporation included the following account balances: retained earnings, $265,000; sales revenue, $880,000; cost of goods sold, $580,000; salaries expense, $155,000; rent expense, $49,000; and interest expense, $24,000.1. Close the revenue accounts as necessary2. Close the expense accounts as necessary3. Close net income

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Makhi Guerrero · Answer 1

Year end Closing journal Entries:

Dr. Cr.

1.

Sales revenue $880,000

Income Summary $880,000

2.

Income Summary $808,000

Cost of goods sold $580,000

Salaries expense $155,000

Rent expense $49,000

Interest expense $24,000

Retained earning is an equity account and it is also a permanent account which will not close.