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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:

Compounded Annually

A method of calculating interest where the interest earned over a period is added to the principal, and the total becomes the basis for calculating interest in the next period, occurring once per year.

Positively Correlated

A relationship between two variables where both either increase or decrease together.

Negatively Correlated

A statistical relationship between two variables in which one variable increases as the other decreases.

Positively Skewed

Describes a distribution of data where the tail is longer on the right side, indicating a larger number of observations are below the mean.