The income statement for Home Light, Inc., for the year ended December 31, 200

Sales revenue .

$452,000

Less expenses:

Cost of goods

$363,000

Salaries expense.

72,000

Interest expense

5,250

Office supplies

3,820

Insurance expense

4,930

Property tax expense

11,200

Total expenses.

460,200)

Net loss

$0(8,200)

Dividends of $20,000 were paid on December 30, 2003.

1. Give the entry required on December 31, 2003, to properly close the income statement accounts.

2. Give the entry required to close the dividends account at December 31, 2003.