Preparing Closing Journal Entries Selected financial information from General Mills as of May 29, 2016 follows.

Question

Preparing Closing Journal Entries Selected financial information from General Mills as of May 29, 2016 follows. Smillions Debit Credit Net sales 516,561 Cost of sales $10.733.6 Selling general & administrative expenses other 300731 Interest expense.net 303 Income tax expense 755 Retained earnings Assume the company has not yet closed any accounts to retained earnings. Prepare journal entries to dose the temporary accounts above. Set up the needed accounts, and post the closing entries. After these entries are posted, what is the balance of the retained earnings account (enter balance is account) General Journal Date Description Debit Credit 29 May . O 0 0 0 To close the revenue account 29 May 0 0 0 0 SGLA expense and other Interest expense.net Income tax expense To do the expense accounts Assume the company has not yet closed any accounts to retained earnings. Prepare journal entries to close the temporary accounts above, Set up the needed T-accounts. and post the closing entries.

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Assumption 1.Based on the Given Details it is assumed that closing entries are directly accounted with Retained Earing account instead of Profit and Loss which is correct General Journal Net Sales Account Date Description Debit Credit Amount Aount 29-May Net Sales A/c 16563.1 To Retained earnings 16563.1 By Balance 16563.1 To Retained Earnings A/C 16563.1 (To Close the Revenue Account) Cost of Sales 29-May Retained Earnings A/C 14865.7 Amount Aount To Cost of Sales A/C 10733.6 To Balance 10733.6 By Retained Earings 10733.6 To SG & A expenses and other 3073.1 To Income Tax Expense 303.8 SG & A Expense To Interest Expense Net 755.2 Amount Aount (To Close other Expenses including Cost of Sales To Balance 3073.1 By Retained Earings 3073.1 Interest Expense Net Amount Aount To Balance 755.2 By Retained Earings 755.2 Income Tax Expense Amount Aount To Balance 303.8 By Retained Earings 303.8 Retained Earnings Amount Aount To Cost of Sales A/C 10733.6 Balance 11990.8 To SG & A expenses and other 3073.1 By Net Sales A/c 16563.1 To Income Tax Expense 303.8 To Interest Expense Net 755.2 Balance 13688.2 Total 28553.9 28553.9

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Preparing Closing Journal Entries Selected financial information from General Mills as of May 29, 2016 follows

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Assumption
1.Based on the Given Details it is assumed that closing entries are directly accounted with Retained Earing account instead of Profit and Loss which is correct


General Journal		Net Sales Account
Date	Description	Debit	Credit		Amount		Aount
29-May	Net Sales A/c	16563.1		To Retained earnings	16563.1	By Balance	16563.1
	To Retained Earnings A/C		16563.1
	(To Close the Revenue Account)			Cost of Sales
29-May	Retained Earnings A/C	14865.7			Amount		Aount
	To Cost of Sales A/C		10733.6	To Balance	10733.6	By Retained Earings	10733.6
	To SG & A expenses and other		3073.1
	To Income Tax Expense		303.8	SG & A Expense
	To Interest Expense Net		755.2		Amount		Aount
	(To Close other Expenses including Cost of Sales			To Balance	3073.1	By Retained Earings	3073.1

				Interest Expense Net
					Amount		Aount
				To Balance	755.2	By Retained Earings	755.2

				Income Tax Expense
					Amount		Aount
				To Balance	303.8	By Retained Earings	303.8

				Retained Earnings
					Amount		Aount
				To Cost of Sales A/C	10733.6	Balance	11990.8
				To SG & A expenses and other	3073.1	By Net Sales A/c	16563.1
				To Income Tax Expense	303.8
				To Interest Expense Net	755.2

				Balance	13688.2
				Total	28553.9		28553.9