Prepare the entries to close the revenue and expense

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Question - The income statement for Pierre Paul Company for the year ended December 31, 2020 is as follows:

PIERRE PAUL COMPANY Income Statement For the Year Ended December 31, 2020

Revenues

Sales revenue $53,000

Interest revenue 4,000

Total revenues $57,000

Expenses

Cost of goods sold 30,000

Salaries and wages expense 18,000

Interest expense 1,500

Total expenses 49,500

Net Income $7,500

Required - Prepare the entries to close the revenue and expense accounts at December 31, 2020.

Reference no: EM132654394

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