Textbook Problem

Closing entries

On July 31, the close of the fiscal year, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a fumiture wholesaler, are as follows:

Accumulated Depr.—Building	$365,000	Inventory	$ 115,000
Administrative Expenses	440,000	Notes Payable	100,000
Building	810,000	Retained Earnings	455,000
Cash	78,000	Sales	1,437,000
Common Stock	75,000	Sales Tax Payable	4,500
Cost of Goods Sold	775,000	Selling Expenses	160,000
Dividends	15,000	Store Supplies	16,000
Interest Expense	6,000	Store Supplies Expense	21,500

Prepare the July 31 closing entries for Serbian Interiors Company.