Closing and Reversing Journal Entries Prepare journal entries for the following events (or transactions): ...
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Accounting
Closing and Reversing Journal Entries
Prepare journal entries for the following events (or transactions):
Part (a): On the balance date, the Company Accountant wishes to close the Cost of Goods Sold account. It has a debit balance of $510,000.
Part (b): On the balance date, the Company Accountant wishes to record the income tax expense. She notes that profit before tax is $85,000, income tax rate is 28% and a provisional income tax expense of $33,000 has already been recorded.
Part (c): On the balance date, the Company Accountant wishes to update the retained earnings account. After closing the revenue and expense accounts to the income summary account, she notes that total revenue is $1,480,000 and total expenses (including income tax) are $1,530,000. Dividends are $40,000.
Part (d): On the first day of a new accounting period, the Company Accountant wishes to reverse accrued catering expenses of $5,000 (excluding GST).
Note that dates, reference numbers and narrations are not required. Instead of a date, label the journal entries as (a), (b), (c), etc.
3 marks per journal entry; TOTAL: 12 MARKS
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