prepare the closing entries for the dionne s accounts smith company is preparing its 581639

The trial balance of Dionne”s Boutique at December 31 shows Merchandise Inventory $21,000, Sales $136,000, Sales Returns and Allowances $4,000, Sales Discounts $3,000, Cost of Goods Sold $92,400, Interest Revenue $5,000, Freight out $1,500, Utilities Expense $7,400, Salaries Expense $18,500. Prepare the closing entries for the Dionne”s accounts.

Smith Company is preparing its multiple step income statement, retained earnings statement, and classified balance sheet. Using the column heads Account, Financial Statement, and Classification, indicate in which financial statement and under what classification each of the following would be reported.


Financial Statement


Accounts Payable

Accounts Receivable

Accumulated Depreciation—

Office Building


Casualty Loss from Vandalism

Cost of Goods Sold

Delivery Equipment

Depreciation Expense

Common Stock


Freight out

Insurance Expense

Interest Payable


Merchandise Inventory

Notes Payable (due in 5 years)

Property Tax Payable

Salaries Expense

Salaries Payable

Sales Returns and Allowances


Unearned Rent

Utilities Expense