Question

Presented below is income statement information of the Millenium Corporation for the year ended December 31, 2020.

 

Sales revenue

$620,000

 

Cost of goods sold

$355,000

Salaries expense

90,000

 

Insurance expense

20,000

Dividend revenue

3,000

 

Depreciation expense

18,000

Miscellaneous expense

12,000

 

Income tax expense

35,000

Loss on sale of investments

8,000

 

Rent expense

10,000

 

Required:

Prepare the necessary closing entries at December 31, 2020. Use compound journal entries where necessary.

 

Question 45 options:

 

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