In 2018, CSX Corporation, which operates under the name Surface Transportation, reported operating expenses of $7,381 million. A partial list of the company’s operating expenses follows. CSX Corporation reported revenues of $12,250 million for the year.

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 Investors. Within the Annual Report link, find the most recent annual report.
3. On the consolidated statement of earnings, what was the amount reported for operating expenses?
4. What percentage increase or decrease does this figure represent from the operating expenses reported in the prior fiscal year?

Transcribed Image Text:

Consolidated Income Statement (Dollars in millions) Revenue Operating Expenses (Dollars in millions) Labor and Fringe Benefits Materials, Supplies, and Other Fuel Depreciation Equipment and Other Rents $12,250 $2,738 1,967 1,046 1,331 395