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On December 31, 20X1, the Income Statement columns of the worksheet for The Sax Shop...

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Accounting

On December 31, 20X1, the Income Statement columns of the worksheet for The Sax Shop contained the following information.

Income Statement Columns Debit Credit
Income summary $ 39,500 $ 42,800
Sales 259,000
Sales returns and allowances 4,350
Sales discounts 3,350
Interest income 215
Purchases 135,300
Freight in 2,650
Purchases returns and allowances 2,450
Purchases discounts 1,620
Rent expense 8,950
Utilities expense 3,020
Telephone expense 1,630
Salaries expense 67,000
Payroll taxes expense 5,360
Supplies expense 1,790
Depreciation expense 2,950
Interest expense 430
Totals $ 276,280 $ 306,085

Assume further that the owner of the firm is Mark Fronke and that the Mark Fronke, Drawing account had a balance of $26,650 on December 31, 20X1.

Prepare the entries that should be made in the general journal to close the revenue, cost of goods sold, expense, and other temporary accounts.

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