Reference no: EM133003117
How to journalize the closing entries?
- How to create the income statement JJJ Partnership for the year-end December 31, 2020?
- Net income or loss is divided equally among the three partners James, John, and Jude?
- Income tax rate is at 20%.
The following is the list of income and expense accounts of JJJ Partnership as of year-end December 31, 2020.
Freight-in ----------------------------- 7,500
Merchandise Inventory, Jan. 1 ---- 50,000
Purchase Discount ----------------- 8,000
Purchases---------------------------- 300,000
Rent Expense ----------------------- 10,000
Sales ---------------------------------- 800,000
Salaries and Wages ---------------- 90,000
Sales Discount ---------------------- 12,000
Sales Return and Allowances ----- 4,500
Supplies Expenses ------------------ 9,500
Taxes and Licenses Expense ------ 15,000
Utilities Expense --------------------- 60,000
Additional Information
Merchandise Inventory, Dec. 31 --- 26,500