Preparing Closing Journal Entries The following selected accounts appear in The GAP Inc.'s financial statements for...

Transcribed Image Text:

Preparing Closing Journal Entries The following selected accounts appear in The GAP Inc.'s financial statements for the fiscal year ended February 2, 2019. $ millions Debit Sales Credit $16,580 Cost of goods sold $10,258 Operating expenses (other than COGS) 4,960 Interest expense 40 Income tax expense 319 Retained earnings (beginning of year) 3,081 a. Prepare entries to close these accounts in journal entry form. Note: List any multiple debits or any multiple credits in alphabetical order by account name. 1. 2 Account Debit Credit To close the revenue account Account Debit Credit To close the expense accounts b. Set up T-accounts for each of the accounts, and post the entries to them. Retained Earnings (2) 15,577 Bal. 16,580 (1) (2) Bal. Sales Cost of Goods Sold Interest Expense Operating Expenses Income Tax Expense Bal. Bal, (2) Bal. (2) Bal (2) Bal (b) Bal. Bal. c. After these entries are posted, what is the balance of the retained earnings account? $ Bal. Bal. Bal. Preparing Closing Journal Entries The following selected accounts appear in The GAP Inc.'s financial statements for the fiscal year ended February 2, 2019. $ millions Debit Sales Credit $16,580 Cost of goods sold $10,258 Operating expenses (other than COGS) 4,960 Interest expense 40 Income tax expense 319 Retained earnings (beginning of year) 3,081 a. Prepare entries to close these accounts in journal entry form. Note: List any multiple debits or any multiple credits in alphabetical order by account name. 1. 2 Account Debit Credit To close the revenue account Account Debit Credit To close the expense accounts b. Set up T-accounts for each of the accounts, and post the entries to them. Retained Earnings (2) 15,577 Bal. 16,580 (1) (2) Bal. Sales Cost of Goods Sold Interest Expense Operating Expenses Income Tax Expense Bal. Bal, (2) Bal. (2) Bal (2) Bal (b) Bal. Bal. c. After these entries are posted, what is the balance of the retained earnings account? $ Bal. Bal. Bal.