american chip corporation s fiscal year end is december 31 the following is a partia 452295

Aug 29, 2021 | Uncategorized

American Chip Corporation’s fiscal year end is December 31. The following is a partial adjusted trial balance as of December 31, 2013.

Account Title Debits Credits
Retained earnings 95,000
Sales revenue 900,000
Interest revenue 5,000
Cost of goods sold 495,000
Salaries expense 140,000
Rent expense 30,000
Depreciation expense 45,000
Interest expense 6,500
Insurance expense 7,500

Required:

Prepare the necessary closing entries at December 31, 2013. (If no entry is required for a particular transaction, select “No journal entry required” in the first account field.)


  • 1. Record the closure of revenue accounts.
  • 2. Record the closure of expense accounts.
  • 3. Record the transfer of the net profit.