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.

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Definitions:

Common Law Remedies

Legal solutions or compensations available under common law systems, typically including damages, injunctions, and restitution.

Sale of Goods Act

Legislation that regulates the sale of goods, ensuring certain standards for transactions, such as the goods being as described, of satisfactory quality, and fit for purpose.

Duty Not to Injure

A legal obligation to avoid causing harm to others, typically in the context of negligence or tort law.

Disposable Propane Cylinders

Single-use containers designed for holding propane gas, commonly used for camping stoves and outdoor grills.