Appendix I
Review Exercise Solutions
413
f ) Journalize the closing entries using the income summary method
JOURNAL Page 1
Date
2016
Account Title and Explanation
Debit Credit
Dec 31 Sales Revenue
113,500
Interest Revenue
6,500
Income Summary
120,000
Close revenue accounts
Dec 31 Income Summary
79,630
Sales Returns & Allowances
1,000
Sales Discounts
1,580
Cost of Goods Sold
44,700
Depreciation Expense
5,000
Insurance Expense
2,500
Interest Expense
2,600
Rent Expense
6,000
Salaries Expense
11,000
Supplies Expense
4,500
Utilities Expense
750
Close expense and debit accounts
Dec 31 Income Summary
40,370
Gregg, Capital
40,370
Close income summary
Dec 31 Gregg, Capital
5,000
Gregg, Drawings
5,000
Close drawings account
