Following Is a Random List of Some of the Accounts

question 101

Essay

Following is a random list of some of the accounts and their December 31, 2019, balances for Carmen & Company. Carmen & Company uses a periodic inventory system and all account balances are normal. $$\begin{array} { l r } \text { Purchases } & \$ 320,000 \\\text { Sales revenue } & 460,000 \\\text { Interest revenue } & 23,000 \\\text { Salary expense } & 45,000 \\\text { Freight in } & 17,000 \\\text { Purchase discounts } & 31,000 \\\text { Sales returns and allowances } & 35,000 \\\text { Interest expense } & 18,000 \\\text { Delivery expense } & 24,000 \\\text { Sales discounts } & 27,000 \\\text { Insurance expense } & 16,000 \\\text { Purchase returns and allowances } & 46,000 \\\text { B.J. Carmen, Capital } & 30,000 \\\text { Utilities expense } & 14,000 \\\text { Amortization expense-equipment } & 10,000 \\\text { B.J. Carmen, Withdrawals } & 15,000\end{array}$$ The beginning and ending amounts for inventory are $58,000 and $65,000, respectively.
Prepare the closing entries for Carmen & Company.

---

Definitions:

Tropical Climate

A non-arid climate characterized by consistent high temperatures throughout the year, usually found within 23.5 degrees north or south of the equator.

Organic Debris

Organic matter, such as leaves, twigs, and other plant or animal material, that has accumulated in a natural environment.

Calcium Carbonate

A chemical compound with the formula CaCO3, commonly found in rocks as the minerals calcite and aragonite and is the main component of pearls and the shells of marine organisms.

Clay

1. Any fine-grained sedimentary particle that is finer than 1/256 mm. 2. A family of finely crystalline, hydrous-silicate minerals with a two- or three-layered crystal structure.