Following is the year-end adjusted trial balance for Fred's Corner Grocery for the current year: ??Fred's Corner GroceryAdjusted Trial Balance December 31???????Dr.Cr.Cash…………………………………………………….. ?$ 67,500?Accounts receivable…………………………………… 46,000?Merchandise inventory………………………………… 60,000?Store supplies…………………………………………. 800?Accounts payable………………………………………?$ 16,000Salaries payable………………………………………..?850Common stock……………………………………..?100,000Retained
earnings……………………………………..?25,630Dividends……………………………….45,000?Sales……………………………………………………..?550,000Sales returns & allowances……………………………4,500?Sales discounts…………………………………………4,250?Cost of goods sold..…………………………………….382,450?Sales salaries expense…………………………………44,000?Advertising expense…………………………………….8,150?Store salaries expense………………………………...24,325?Store supplies expense………………………………..450?Interest expense………………………………………... 5,055?Totals……………………………………………………..$692,480$692,480Prepare the closing entries at December 31 for the current year.
What will be an ideal response?
| Dec | 31 | Sales | 550,000 | ? |
| ? | ? | Income Summary | ? | 550,000 |
| ? | 31 | Income Summary | 473,180 | ? |
| ? | ? | Sales Returns and Allowances | ? | 4,500 |
| ? | ? | Sales Discounts | ? | 4,250 |
| ? | ? | Cost of goods sold | ? | 382,450 |
| ? | ? | Sales Salaries Expense | ? | 44,000 |
| ? | ? | Advertising Expense | ? | 8,150 |
| ? | ? | Store Salaries Expense | ? | 24,325 |
| ? | ? | Store Supplies Expense | ? | 450 |
| ? | ? | Interest Expense | ? | 5,055 |
| ? | 31 | Income Summary | 76,820 | ? |
| ? | ? | Retained earnings | ? | 76,820 |
| ? | 31 | Retained earnings | 45,000 | ? |
| ? | ? | Dividends | ? | 45,000 |
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