Formation,Inc

Essay

Formation,Inc.had the following balances as of December 31,2012.Prepare closing entries based on these balances.
$\begin{array}{ll}\text { Equipment } & \$ 26,00 \\\text { Retained Earnings } & 7,000 \\\text { Accumulated Depreciation } & \$ 4,500 \\\text { Paid-in Capital } & 21,400 \\\text { Cost of Goods Sold } & 59,000 \\\text { Supplies } & 4,300 \\\text { Wages Payable } & 1,200 \\\text { Sales } & 112,00 \\\text { Cash } & 34,000 \\\text { Accounts Payable } & 7,200 \\\text { Wage Expense } & 36,000 \\\text { Rent Expense } & 8,000 \\\text { Merchandise Inventory } & 12,700 \\\text { Dividends (Amount Declared) } & 3,000\end{array}$