Presented below is income statement information of the Schefter Corporation for the year ended December 31, 2021.
Sales revenue $504,000
Salaries expense 80,300
Interest revenue 6,600
Advertising expense 11,250
Gain on sale of investments 8,900
Cost of goods sold 277,200
Insurance expense 13,850
Interest expense 3,800
Income tax expense 39,500
Depreciation expense 23,000
Required:
1. Prepare the necessary closing entries at December 31, 2013.
2. Record the closure of revenue accounts.
3. Record the closure of expense accounts.
4. Record the transfer of the net profit.