Business
Business, 15.10.2020 14:01, anatomyfl

The following is the income statement for the period ending December 31, Year 1, for Manatee Construction Company: Manatee Construction Company Income Statement

Sales $8,000,000
Cost of goods sold (6,500,000)
Gross profit 1,500,000
Salaries expense (300,000)
Other administrative expenses (100,000)
Interest expense (900,000)
Advertising expense (450,000)
Total expenses (1,750,000)
Operating loss (250,000)
Gain from the sale of investments 100,000
Total net loss $(150,000)

Based on this information, perform the adjusting journal entry to close Manatee’s books at the end of Year 1. To prepare each required journal entry: Enter the corresponding debit or credit amount in the associated column. Round all amounts to the nearest whole number.

Account Name Debit Credit

1. Sales
2. Cost of goods sold
3. Salaries expense
4. Other administrative expenses
5. Interest expense
6. Advertising expense
7. Gain from the sale of investments
8. Retained earnings

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Answers: 2

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The following is the income statement for the period ending December 31, Year 1, for Manatee Constru...

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