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Preparing Closing Journal Entries

The following selected accounts appear in The GAP Inc.$$s financial statements for the fiscal year ended February $2,2019.$

$ millions Debit Credit

Sales $$16,580$

Cost of goods sold $$10,258$

Operating expenses $($other than COGS$)4,960$

Interest expense $40$

Income tax expense $319$

Retained earnings $($beginning of year$)3,081$

a$.$ Prepare entries to close these accounts in journal entry form.

Note: List any multiple debits or any multiple credits in alphabetical order by account name.

Account Debit Credit

$1.$ Answer

Sales

Answer

Answer

$0$

Answer

Retained Earnings

Answer

$0$

Answer

To close the revenue account

Account Debit Credit

$2.$ Answer

Retained Earnings

Answer

Answer

$0$

Answer

Cost of Goods Sold

Answer

$0$

Answer

Answer

Operating Expenses

Answer

$0$

Answer

Answer

Interest Expense

Answer

$0$

Answer

Answer

Income Tax Expense

Answer

$0$

Answer

To close the expense accounts

b$.$ Set up T$$accounts for each of the accounts, and post the entries to them.

Retained Earnings

Answer

Bal.

$(2)15,57716,580(1)$

Answer

$0$

Answer

Bal.

Sales

$(2)$ Answer

Answer

$29,844$

Bal.

Answer

$0$

Answer

$0$

Bal.

Cost of Goods Sold

Bal. Answer

Answer

$(2)$

Bal. Answer

$0$

Answer

$0$

Interest Expense

Bal. Answer

Answer

$(2)$

Bal. Answer

$0$

Answer

$0$

Operating Expenses

Bal. Answer

Answer

$(2)$

Bal. Answer

$0$

Answer

$0$

Income Tax Expense

Bal. Answer

Answer

$($b$)$

Bal. Answer

$0$

Answer

$0$

c$.$ After these entries are posted, what is the balance of the retained earnings account? $Answer

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