Question

Following are Nintendo’s revenue and expense accounts for a recent March 31 fiscal year-end (yen in millions). (Enter answers in millions.) Net sales ¥ 1,888,622 Cost of sales 1,254,981 Advertising expense 118,308 Other expense, net 397,544 Prepare the company's closing entries for its revenues and its expenses.

Answer 1

1.

Dr. Net Sales ¥ 1,888,622

Cr. Income Summary ¥ 1,888,622

2.

Dr. Income Summary ¥1,770,833

Cr. Cost of sales ¥ 1,254,981

Cr. Advertising expense ¥ 118,308

Cr. Other expense ¥ 397,544

Step-by-step explanation:

Closing Entries are passed to close the temporary accounts of a business for the year. These accounts are closed and their balances are transferred to income summary account.

First we will close the the revenue / income accounts and then expenses or cost accounts.