the adjusted trial balance of amana corporation at december 31 shows that sales revenue for the year was…

the adjusted trial balance of amana corporation at december 31 shows that sales revenue for the year was $513,000 and other revenue was $37,000. cost of goods sold for that same period was $256,000, while other expenses totaled $185,000. the corporation declared and paid dividends of $12,000 during the year. the balance of retained earnings before closing entries was $457,000.\nread the requirements.\n1. prepare the closing entries for revenues, expenses, and dividends for the year. (record debits first, then credits. exclude explanations from any journal entries.)\nbegin by recording the entry to close out the revenue accounts.\njournal entry\ndate\naccounts\ndebit\ncredit\ndecember 31

the adjusted trial balance of amana corporation at december 31 shows that sales revenue for the year was $513,000 and other revenue was $37,000. cost of goods sold for that same period was $256,000, while other expenses totaled $185,000. the corporation declared and paid dividends of $12,000 during the year. the balance of retained earnings before closing entries was $457,000.\nread the requirements.\n1. prepare the closing entries for revenues, expenses, and dividends for the year. (record debits first, then credits. exclude explanations from any journal entries.)\nbegin by recording the entry to close out the revenue accounts.\njournal entry\ndate\naccounts\ndebit\ncredit\ndecember 31

Answer

Explanation:

Step1: Close revenue accounts

Revenue accounts have credit balances. To close them, we debit the revenue accounts and credit Income Summary. Sales Revenue is ( $513,000 ) and Other Revenue is ( $37,000 ). The total revenue is ( 513000 + 37000=$550,000 ). So, we debit Sales Revenue ( $513,000 ), debit Other Revenue ( $37,000 ), and credit Income Summary ( $550,000 ).

Step2: Close expense accounts

Expense accounts have debit balances. To close them, we credit the expense accounts and debit Income Summary. Cost of Goods Sold is ( $256,000 ) and Other Expenses is ( $185,000 ). The total expenses is ( 256000+185000 = $441,000 ). So, we debit Income Summary ( $441,000 ), credit Cost of Goods Sold ( $256,000 ), and credit Other Expenses ( $185,000 ).

Step3: Close Income Summary

Income Summary balance is ( 550000 - 441000=$109,000 ) (credit balance). To close Income Summary, we debit Income Summary ( $109,000 ) and credit Retained Earnings ( $109,000 ).

Step4: Close Dividends

Dividends have a debit balance. To close dividends, we credit Dividends and debit Retained Earnings. Dividends is ( $12,000 ). So, we debit Retained Earnings ( $12,000 ) and credit Dividends ( $12,000 ).

Answer:

Date Accounts Debit Credit
December 31 Sales Revenue ( 513000 )
Other Revenue ( 37000 )
Income Summary ( 550000 )
December 31 Income Summary ( 441000 )
Cost of Goods Sold ( 256000 )
Other Expenses ( 185000 )
December 31 Income Summary ( 109000 )
Retained Earnings ( 109000 )
December 31 Retained Earnings ( 12000 )
Dividends ( 12000 )