The following information is available for Moiz Company:________.
Debit Credit
Common Stock $30,000
Retained Earnings 20,000
Dividends $30,000
Sales Revenue 510,000
Sales Returns and Allowances 20,000
Sales Discounts 7,000
Cost of Goods Sold 310,000
Freight-Out 2,000
Advertising Expense 15,000
Interest Expense 19,000
Salaries and Wages Expense 55,000
Utilities Expense 18,000
Depreciation Expense 7,000
Interest Revenue 23,000
Using the above information, prepare the closing entries for Moiz Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer and Explanation:

1. Interest Revenue $23,000  

 Sales Revenue $510,000  

              To Income Summary $533000

(Being closing of revenues accounts are closed)

2. Income Summary $453,000

  To Sales returns $20,000

      To Sales Discounts  $7,000

     To Cost Of goods sold $310,000

     To Freight out $2,000

      To Advertise Exp $15,000

      To Interest Exp  $19,000

      To Salaries & Wages $55,000

      To Utility  $18,000

      To Depreciation $7,000

(Being closing of expenses accounts are closed)

3. Income Summary $80,000

      To Retained Earning $80,000

(Being profit is recorded)

4. Retained Earning $30,000

        To Dividends  $30,000

(Being closing of dividend is recorded)