Problem:
Company's accounting records carried the following accounts.(amounts in millions)
inventory $5,489
interest earned $ 37
accounts payable $ 1,993
cost of goods sold $27,023
other expenses $ 1, 597
owner withdrawals $ 255
selling expenses $ 6,832
sales revenue $ 38,434
interest expense $ 28
receivables $ 587
general admin.
expense $ 671
Question 1: What I need to understand is how to Journalize all of the company's closing entries at January 31st, 2001. Using an owner capital account.
Question 2: Also need assistance in setting up T-ACCOUNTS for the Income Summary account and the Owner CAPITAL account.
Post to these accounts and take their ending balances. One year earlier, at January 31st 2000, The Owner Capital balance was $8,740 million
Any assistance would be appreciated.