In 2012, CSX Corporation, which operates under the name Surface Transportation, reported operating expenses of $8,299 million. A partial list of the company's operating expenses follows. CSX Corporation reported revenues from external customers to be $11,756 million for the year.
Consolidated Income Statement
(Dollars in millions)
Revenue.............................................................. $11,756
Operating Expenses
(Dollars in millions)
Labor and Fringe Benefits.......................................... $3,020
Materials, Supplies, and Other....................................... 2,156
Fuel...................................................................... 1,672
Depreciation.............................................................1,059
Equipment and Other Rents.............................................392
Analyze:
1. If the given categories represent the related general ledger accounts, what journal entry would be made to close the expense accounts at year-end?
2. What journal entry would be made to close the revenue accounts?
Analyze Online: Locate the website for CSX Corporation (www.csx.com). Click on CSX Corporation and then click on Investor Relations. Within the Financial Information link, find the most recent annual report.