Preparing Closing Journal Entries
The following selected accounts appear in The GAP Inc.s financial statements for the fiscal year ended February
$ millions Debit Credit
Sales $
Cost of goods sold $
Operating expenses other than COGS
Interest expense
Income tax expense
Retained earnings beginning of year
a Prepare entries to close these accounts in journal entry form.
Note: List any multiple debits or any multiple credits in alphabetical order by account name.
Account Debit Credit
Answer
Sales
Answer
Answer
Answer
Retained Earnings
Answer
Answer
To close the revenue account
Account Debit Credit
Answer
Retained Earnings
Answer
Answer
Answer
Cost of Goods Sold
Answer
Answer
Answer
Operating Expenses
Answer
Answer
Answer
Interest Expense
Answer
Answer
Answer
Income Tax Expense
Answer
Answer
To close the expense accounts
b Set up Taccounts for each of the accounts, and post the entries to them.
Retained Earnings
Answer
Bal.
Answer
Answer
Bal.
Sales
Answer
Answer
Bal.
Answer
Answer
Bal.
Cost of Goods Sold
Bal. Answer
Answer
Bal. Answer
Answer
Interest Expense
Bal. Answer
Answer
Bal. Answer
Answer
Operating Expenses
Bal. Answer
Answer
Bal. Answer
Answer
Income Tax Expense
Bal. Answer
Answer
b
Bal. Answer
Answer
c After these entries are posted, what is the balance of the retained earnings account? $Answer
