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 ¥ 549,780 Cost of sales 335,196 Advertising expense 54,834 Other expense, net 117,907 Prepare the company’s closing entries for its revenues and its expenses.

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andromache andromache · Answer 1 · 2019-12-26T09:09:49+01:00

Answer:

Explanation:

The closing entries are shown below:

1. Net sales A/c Dr ¥549,780 million

To Income Summary ¥549,780 million

(Being revenue account closed)

2. Income summary A/c Dr ¥507,937 million

To Cost of sales A/c ¥335,196 million

To Advertising expense A/c ¥54,834 million

To Other expense, net A/c ¥117,907 million

(Being expenses accounts are closed)

3. Income summary A/c Dr ¥41,843 million

To Retained earning ¥41,843 million

(Being the difference is credited to retained earning)