The company's adjusted trial balance as follows includes the following accounts balances:
Cash, $15,000;
Equipment, $85,000;
Accumulated Depreciation, $25,000;
Accounts Payable, $10,000;
Retained earnings, $63,500;
Dividends, $2,000;
Sales, $56,000;
Sales Returns and Allowances, $3,000;
Sales Discounts, $1,500;
Depreciation Expense, $25,000; and Salaries Expense, $23,000.
All accounts have normal balances.
Required:
a. Prepare closing entry #1.

Expense & revenue summary a/c (credit balance) = $3500

Explanation:

  1. Dr  Expense & revenue summary 52500

                          Cr Sales discount                     1500

                          Cr Sales return & allowance   3000

                          Cr   Depreciation expense      25000

                          Cr   Salaries expense               23000

         (Close expenses to expense & revenue summary a/c)

2. Dr Sales    56000

                           Cr  Expense & revenue summary  56000

       (Close sales to expense & revenue summary a/c)

3.  Dr Expense & revenue summary a/c 3500

                         Cr  Retained earning a/c           3500

      (To close expense & revenue summary a/c)

4. Dr Retained earning  2000

                          Cr Expense & revenue summary  2000

       (Close dividend to expense & revenue summary a/c)d

eds? ederal government or feds

answer; the correct answer to the above statement is (true);