Presented below is income statement information of the Millenium Corporation for the year ended December 31, 2020. Sales revenue$620,000 Cost of goods sold$355,000Salaries expense90,000 Insurance expense20,000Dividend revenue3,000 Depreciation expense18,000Miscellaneous expense12,000 Income tax expense35,000Loss on sale of investments8,000 Rent expense10,000 Required:Prepare the necessary closing entries at December 31, 2020. Use compound journal entries where necessary. Question 45 options:

Closing entries: Closing entries are those journal entries, which are passed to transfer the final…

Answered: Prepare the necessary closing entries…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Presented below is income statement information of the Millenium Corporation for the year ended December 31, 2020.

Sales revenue	$620,000	Cost of goods sold	$355,000
Salaries expense	90,000	Insurance expense	20,000
Dividend revenue	3,000	Depreciation expense	18,000
Miscellaneous expense	12,000	Income tax expense	35,000
Loss on sale of investments	8,000	Rent expense	10,000

Required:

Prepare the necessary closing entries at December 31, 2020. Use compound journal entries where necessary.

Question 45 options:

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