Solved

From the Data Below for the Sorta Company, Prepare the Closing

question 24

Essay

From the data below for the Sorta Company, prepare the closing entries for the year ended December 31, 20--. $\begin{array} { l r } \text { Cash dividends } & \$ 105,000 \\\text { Sales } & 987,000 \\\text { Sales returns and allowances } & 5,200 \\\text { Interest revenue } & 3,700 \\\text { Factory overhead (debit) } & 205,300 \\\text { Factory overhead (credit) } & 205,300 \\\text { Cost of goods sold } & 674,200 \\\text { Wages expense } & 112,000 \\\text { Supplies expense } & 5,300 \\\text { Depreciation expense-office equipment } & 4,200 \\\text { Utilities expense } & 5,700 \\\text { Bad debt expense } & 1,300 \\\text { Advertising expense } & 6,300 \\\text { Interest expense } & 4,700 \\\text { Income tax expense } & 61,950\end{array}$ $From the data below for the Sorta Company, prepare the closing entries for the year ended December 31, 20--. \begin{array} { l r } \text { Cash dividends } & \$ 105,000 \\ \text { Sales } & 987,000 \\ \text { Sales returns and allowances } & 5,200 \\ \text { Interest revenue } & 3,700 \\ \text { Factory overhead (debit) } & 205,300 \\ \text { Factory overhead (credit) } & 205,300 \\ \text { Cost of goods sold } & 674,200 \\ \text { Wages expense } & 112,000 \\ \text { Supplies expense } & 5,300 \\ \text { Depreciation expense-office equipment } & 4,200 \\ \text { Utilities expense } & 5,700 \\ \text { Bad debt expense } & 1,300 \\ \text { Advertising expense } & 6,300 \\ \text { Interest expense } & 4,700 \\ \text { Income tax expense } & 61,950 \end{array}$

Definitions:

Aggregate Income

The total income earned by all individuals and entities in an economy over a specific time period.

Final Output

The total value of goods and services produced by an economy after adjusting for intermediate goods used in production, representing the end products available for consumption, investment, exports, and government spending.

Aggregate Expenditure

The total spending on goods and services in an economy during a specific period, including consumer spending, investment, government spending, and net exports.

Consumption Expenditures

Spending by households on goods and services, excluding new housing.