Making closing entries
Howe Audio Equipment’s accounting records carried the following selected accounts at April 30, 2012:
|
Inventory |
$ 5,900 |
Selling expense |
$ 7,300 |
|
|
Interest revenue |
40 |
Sales revenue |
38,400 |
|
|
Accounts payable |
1,000 |
Interest expense |
30 |
|
|
Cost of goods sold |
26,900 |
Accounts receivable |
600 |
|
|
Other expense |
1,700 |
General and administrative expense |
900 |
|
|
Howe, drawing |
300 |
Howe, capital |
8,730 |
|
Requirements
1. Journalize the closing entries at April 30, 2012.
2. Set up T accounts for Income summary and Howe, capital. Post the closing entries to the T accounts and calculate their ending balances.