Nantucket Corporation has the following income statement accounts for the year ended December 31.
$$\begin{array} { l r l r }
\text { Sales } & \$ 750,000 & \text { Rent Expense } & \$ 105,000 \
\text { Salaries Expense } & 425,000 & \text { Utilities Expense } & 11,000 \
\text { Dividend Revenue } & 4,500 &\text { Depreciation Expense } & 16,500 \
\text { Interest Expense } & 9,500& \text { Income Tax Expense } & 38,000 \
\text { Gain on Sale of Equipment } & 6,000& \text { Insurance Expense } & 23,000
\end{array}$$ Required: Prepare the necessary closing entries for December 31.

Question

Nantucket Corporation has the following income statement accounts for the year ended December 31.
 $$\begin{array} { l r l r } 
\text { Sales } & \$ 750,000 & \text { Rent Expense } & \$ 105,000 \
\text { Salaries Expense } & 425,000 & \text { Utilities Expense } & 11,000 \
\text { Dividend Revenue } & 4,500 &\text { Depreciation Expense } & 16,500 \
\text { Interest Expense } & 9,500& \text { Income Tax Expense } & 38,000 \
\text { Gain on Sale of Equipment } & 6,000& \text { Insurance Expense } & 23,000
\end{array}$$ Required: Prepare the necessary closing entries for December 31.

Quizplus · Accepted Answer

The Answer of Nantucket Corporation has the following income statement accounts for the year ended December 31.
 $$\begin{array} { l r l r } 
\text { Sales } & \$ 750,000 & \text { Rent Expense } & \$ 105,000 \
\text { Salaries Expense } & 425,000 & \text { Utilities Expense } & 11,000 \
\text { Dividend Revenue } & 4,500 &\text { Depreciation Expense } & 16,500 \
\text { Interest Expense } & 9,500& \text { Income Tax Expense } & 38,000 \
\text { Gain on Sale of Equipment } & 6,000& \text { Insurance Expense } & 23,000
\end{array}$$ Required: Prepare the necessary closing entries for December 31.

Nantucket Corporation Has the Following Income Statement Accounts for the Year