Presented below are selected account balances for Sunland Co. as of December 31, 2020. Inventory 12/31/20 $59,550 Cost of Goods Sold $222,005
Common Stock 76,250 Selling Expenses 15,964
Retained Earnings 44,780 Administrative Expenses 37,422
Dividends 18,160 Income Tax Expense 30,070
Sales Returns and Allowances 11,865 Sales Discounts 15,140
Sales Revenue 405,210

Required:
Prepare closing entries for Homer Winslow Co. on December 31, 2020.

Answer and Explanation:

The closing entries are as follows

1. Sales Revenue A/c Dr $405,210

           To Income Summary $405,210

(Being revenue account closed)

2. Income summary A/c Dr $332,466

            To Cost of Goods Sold $222,005

            To  Selling Expenses 15,964

            To Administrative Expenses $37,422

            To Income Tax Expense 30,070

             To Sales Returns and Allowances 11,865

             To Sales Discounts 15,140

(Being expenses accounts are closed)

3. Income summary A/c Dr $72,744

        To Retained earning $72,744

(Being the difference is credited to retained earning)

4. Retained earnings A/c Dr $18,160

            To Dividend A/c $18,160

(Being dividend account is closed)

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

hi there,

do u need ? ?

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