The year-end adjusted trial balance of Gordon Produce for the current year, is shown below:GORDON PRODUCEAdjusted Trial BalanceDecember 31?DebitCreditCash$ 1,500?Store supplies500?Merchandise inventory11,000?Store equipment18,000?Accum. depr.-store equipment?$ 3,000Accounts payable?6,000Common stock?10,000Retained earnings?40,000Dividends22,000?Sales?60,500Cost of goods sold48,000?Depreciation expense-Store equipment1,000?Store supplies expense1,500?Salaries expense14,000?Rent expense2,000??$119,500$119,500Prepare closing entries at December 31 for the current year.
What will be an ideal response?
| Dec. 31 | Sales | 60,500 | ? |
| ? | Income Summary | ? | 60,500 |
| 31 | Income Summary | 66,500 | ? |
| ? | Cost of goods sold | ? | 48,000 |
| ? | Salaries Expense | ? | 14,000 |
| ? | Rent Expense | ? | 2,000 |
| ? | Store Supplies Expense | ? | 1,500 |
| ? | Depreciation Expense-Store Equip. | ? | 1,000 |
| 31 | Retained earnings | 6,000 | ? |
| ? | Income Summary | ? | 6,000 |
| ? | Retained earnings | 22,000 | ? |
| ? | Dividends | ? | 22,000 |
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