Below is the closing journal entry prepared by Charny Ltd. on December 31, 2016. Use the closing journal entry to prepare Charny Ltd.’s income statement for the year ended December 31, 2016.
Dr. Sales................ 650,000
Dr. Interest revenue............ 3,000
Cr. Retained earnings ........... 112,000
Cr. Wage expense ............ 125,000
Cr. Advertising expense .......... 35,000
Cr. Depreciation expense......... 25,000
Cr. Cost of goods sold......... .. 225,000
Cr. Selling and administrative expense..... 32,000
Cr. Interest expense ............ 12,500
Cr. Rent expense............ 18,000
Cr. Income tax expense.......... 59,000
Cr. Miscellaneous expense......... 9,500