The Following Information Is Available for Liu Company Instructions
Using the Above Information Prepare the Closing Entries for Debit

question 196

Essay

The following information is available for Liu Company: $\begin{array}{lrr}&\text { Debit } & \text { Credit } \\\text { Owner's Capital } & & \$ 50,000 \\\text { Owner's Drawings } & \$ 23,000 & \\\text { Sales Revenue } & & 500,000 \\\text { Sales Returns and Allowances } & 20,000 & \\\text { Sales Discounts } & 7,500 & \\\text { Cost of Goods Sold } & 302,000 & \\\text { Freight-Out } & 2,300 & \\\text { Advertising Expense } & 15,000 & \\\text { Interest Expense } & 19,200 & \\\text { Salaries and Wages Expense } & 53,000 & \\\text { Utilities Expense } & 18,000 & \\\text { Depreciation Expense } & 9,000 & \\\text { Interest Revenue } & & 18,000\end{array}$
Instructions
Using the above information prepare the closing entries for Liu Company.

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Definitions:

Competitive Strategies

Approaches adopted by businesses to gain a competitive edge over rivals, including differentiation, cost leadership, and focus strategies.

Consumer Welfare

The overall well-being and interest of consumers, focusing on the quality, affordability, and accessibility of goods and services.

Consumer Financial Protection Bureau

A U.S. government agency aimed at ensuring consumers are treated fairly by banks, lenders, and other financial institutions, and protecting consumers from unfair, deceptive, or abusive practices.

Financial Crisis

A significant disruption in the flow of funds within financial markets and institutions, leading to a severe decline in asset values and liquidity, often resulting in a recession.