In 2015, CSX Corporation, which operates under the name Surface Transportation, reported operating expenses of $8,227 million. A partial list of the company's operating expenses follows. CSX Corporation reported revenues from external customers to be $11,811 million for the year.
Consolidated Income Statement
(Dollars in millions)
Revenue...................................................$11,811
Operating Expenses
(Dollars in millions)
Labor and Fringe Benefits...............................$3,290
Materials, Supplies, and Other...........................2,336
Fuel............................................................957
Depreciation................................................1,208
Equipment and Other Rents................................436
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?