Part E.

Closing entries

Date Account Title and explanation debit credit

$1,901,00
2018   0  
13- $1,901,00
Dec Sales Revenue   0
  Income summary    
  (to close the sale revenue to income summary)    
       
31-
Dec Income summary $215,000  
  Sales Returns and allowances   $95,000
  Sales discounts   $120,000
  (to close the sales returns to income summary    
       
31-
Dec Income summary $650,000  
  sold goods cost   $650,000
  (To close the cost of goods to income summary)    
       
31- $1,481,00
Dec Income summary 0  
  Wages expense   $465,000
  Insurance expense   $480,000
Depreciation expense (fixtures and
  Furniture)   $90,000
Depreciation expense (computer
  equipment)   $100,000
  Store supplies expense   $40,000
  Utilities expense   $180,000
  Bad debt Expense   $30,000
  Interest expense   $90,000
  inventory shrinkage   $6,000
(To close the expense incurred to owner’s
  capital account)    
       
31-
Dec Owner's capital $445,000  
  Income summary   $445,000
(To close the net loss to owner’s capital
  account)    
       
31-
Dec Owner’s capital $95,000  
  Owner's withdrawals   $95,000
  (to close the withdrawals to capital)