Question

Question: Following are Nintendo’s revenue and expense accounts for a recent March 31 fiscal year-end (yen in

millions). Prepare the company’s closing entries for its revenues and its expenses

Net sales ¥549,780

Cost of sales 335,196

Advertising expense 54,834

Other expense, net 117,907

Short answer

Income summary account debited and net sales credited with ¥549,780. Income summary debited ¥507,937, cost of sales credited ¥335,196, advertising expense credited ¥54,834 and other expense credited ¥117,907.

Step-by-step solution

Definition of closing entries

Closing entries are the entries that are passed at the end of the year.

Closing entries

	Journal entries
Date	Particulars	Debit	Credit
March 31	Net Sales	¥549,780
	Income Summary		¥549,780
	(Closing entry for sale)
March 31	Income Summary	¥507,937
	Cost of Sales		¥335,196
	Advertising Expense		¥54,834
	Other Expense		¥117,907
	(Closing entry of expenses)