The following information is available for Liu Company: Debit Credit Owner’s Capital $ 50 , 000 Owner’s Drawings $ 23 , 000 Sales Revenue 500 , 000 Sales Returns and Allowances 20 , 000 Sales Discounts 7 , 500 Cost of Goods Sold 302 , 000 Freight-Out 2 , 300 Advertising Expense 15 , 000 Interest Expense 19 , 200 Salaries and Wages Expense 53 , 000 Utilities Expense 18 , 000 Depreciation Expense 9 , 000 Interest Revenue 18 , 000 \begin{array}{lrr} & ext { Debit } & ext { Credit } \ ext { Owner ' s Capital } & & \$ 50,000 \ ext { Owner ' s Drawings } & \$ 23,000 & \ ext { Sales Revenue } & & 500,000 \ ext { Sales Returns and Allowances } & 20,000 & \ ext { Sales Discounts } & 7,500 & \ ext { Cost of Goods Sold } & 302,000 & \ ext { Freight-Out } & 2,300 & \ ext { Advertising Expense } & 15,000 & \ ext { Interest Expense } & 19,200 & \ ext { Salaries and Wages Expense } & 53,000 & \ ext { Utilities Expense } & 18,000 & \ ext { Depreciation Expense } & 9,000 & \ ext { Interest Revenue } & & 18,000\end{array} Owner’s Capital Owner’s Drawings Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Freight-Out Advertising Expense Interest Expense Salaries and Wages Expense Utilities Expense Depreciation Expense Interest Revenue Debit $23 , 000 20 , 000 7 , 500 302 , 000 2 , 300 15 , 000 19 , 200 53 , 000 18 , 000 9 , 000 Credit $50 , 000 500 , 000 18 , 000 InstructionsUsing the above information prepare the closing entries for Liu Company.

Question

The following information is available for Liu Company:    Debit   Credit   Owner’s Capital  $ 50 , 000  Owner’s Drawings  $ 23 , 000  Sales Revenue  500 , 000  Sales Returns and Allowances  20 , 000  Sales Discounts  7 , 500  Cost of Goods Sold  302 , 000  Freight-Out  2 , 300  Advertising Expense  15 , 000  Interest Expense  19 , 200  Salaries and Wages Expense  53 , 000  Utilities Expense  18 , 000  Depreciation Expense  9 , 000  Interest Revenue  18 , 000 \begin{array}{lrr} & 	ext { Debit }  &  	ext { Credit } \	ext { Owner ' s Capital }  &   &  \$ 50,000 \	ext { Owner ' s Drawings }  &  \$ 23,000  &  \	ext { Sales Revenue }  &   &  500,000 \	ext { Sales Returns and Allowances }  &  20,000  &  \	ext { Sales Discounts }  &  7,500  &  \	ext { Cost of Goods Sold }  &  302,000  &  \	ext { Freight-Out }  &  2,300  &  \	ext { Advertising Expense }  &  15,000  &  \	ext { Interest Expense }  &  19,200  &  \	ext { Salaries and Wages Expense }  &  53,000  &  \	ext { Utilities Expense }  &  18,000  &  \	ext { Depreciation Expense }  &  9,000  &  \	ext { Interest Revenue }  &   &  18,000\end{array}  Owner’s Capital   Owner’s Drawings   Sales Revenue   Sales Returns and Allowances   Sales Discounts   Cost of Goods Sold   Freight-Out   Advertising Expense   Interest Expense   Salaries and Wages Expense   Utilities Expense   Depreciation Expense   Interest Revenue  ​  Debit  $23 , 000 20 , 000 7 , 500 302 , 000 2 , 300 15 , 000 19 , 200 53 , 000 18 , 000 9 , 000 ​  Credit  $50 , 000 500 , 000 18 , 000 ​ InstructionsUsing the above information prepare the closing entries for Liu Company.

Javariah Sohail · Accepted Answer

Final Answer :   Interest Expense 19 , 200  Salaries and Wages Expense  53 , 000  Utilities Expense  18 , 000  Depreciation Expense  9 , 000 \begin{array}{lrr}  	ext {  Interest Expense}  & 19,200\ 	ext { Salaries and Wages Expense  }  & 53,000\ 	ext { Utilities Expense   }  & 18,000\ 	ext { Depreciation Expense }  & 9,000\\end{array}  Interest Expense  Salaries and Wages Expense   Utilities Expense   Depreciation Expense  ​ 19 , 200 53 , 000 18 , 000 9 , 000 ​  31 Income Summary  72 , 000  Owner’s Capital  72 , 000  31 Owner’s Capital  23 , 000  Owner’s Drawings 23 , 000 \begin{array}{lrr}  	ext { 31\quad Income Summary }  & 72,000\\quad\quad\quad 	ext { Owner ' s Capital }  & & 72,000\\ 	ext { 31\quad Owner ' s Capital }  & 23,000\\quad\quad\quad 	ext {  Owner ' s Drawings}  & & 23,000\\end{array}  31 Income Summary   Owner’s Capital   31 Owner’s Capital   Owner’s Drawings ​ 72 , 000 23 , 000 ​ 72 , 000 23 , 000 ​

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