Prepare the required closing entries with brief description

Response to the following problem:

Southern Cross Corporation supplies you with the following information applicable to the current year, December 31, 2016. The company uses the perpetual inventory system.

Delivery expense                               $ 2,000

Sales                                              100,000

Merchandize inventory (Dec. 31)           15,000

Cost of goods sold                             70,000

Office supplies expense                         7,000

Sales returns and allowances                10,000

Salaries expense                                  4,000

Unused supplies                                   5,000


1. Prepare an income statement. List expenses other than cost of goods sold as other expenses. Assume all accounts have normal balances.

2. Prepare all required closing entries. Include general ledger account numbers and a brief description for each entry.

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Cost Accounting: Prepare the required closing entries with brief description
Reference No:- TGS02089538

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