Closing Entries
Below Is a Selection of Account Balances for Howard

question 35

Essay

Closing entries
Below is a selection of account balances for Howard Ltd. at December 31, 2020:
$\begin{array}{llcc} \text { Sales } & \$856,000\\ \text {Sales returns } &40,000\\ \text {Cost of goods sold. } &456,000\\ \text { Advertising expense } &38,000\\ \text { Salaries expense } &113,000\\ \text { Depreciation expense } &31,000\\ \text { Insurance expense } &9,000\\ \text { Administrative expense } &10,000\\\end{array}$
All accounts have their normal balances.
Instructions
Prepare all necessary closing entries at December 31, 2020.

---

Definitions:

Ebbinghaus and Thorndike

Two influential psychologists; Ebbinghaus is known for his work on memory and forgetting, while Thorndike is known for his work on learning and the law of effect.

IQ Test

A standardized test designed to measure human intelligence and cognitive abilities in relation to an age group, often used for educational placement, assessment of intellectual disability, and job applicant evaluation.

Creative Intelligence

An aspect of intelligence that involves the ability to deal with new situations using past experiences and current skills.

Practical Intelligence

The aspect of intelligence that involves the ability to solve everyday problems through skilled reasoning that relies on tacit knowledge.