The entry to close the income statement account are: Debit Sales $162,100; Credit Income summary $162,100.
Nix’it company’s journal entries
1. July 31
Debit Sales $162,100
Credit Income summary $162,100
(To close sales revenue to income summary)
2. July 31
Debit Income summary $177,600
Credit Cost of goods sold $111,400
[$109,500+($45,300-$43,400)]
Credit Depreciation expense $11,800
Credit Sales discounts $4,400
Credit Salaries expense $40,000
Credit Miscellaneous expenses $5,000
Credit Sales returns and allowances $5,000
(To close expenses account)
Inconclusion the entry to close the income statement account are: Debit Sales $162,100; Credit Income summary $162,100.
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