Closing Entries
Below Is a Selection of Account Balances for Howard

Essay

Closing entries
Below is a selection of account balances for Howard Ltd. at December 31, 2020:
$\begin{array}{llcc} \text { Sales } & \$856,000\\ \text {Sales returns } &40,000\\ \text {Cost of goods sold. } &456,000\\ \text { Advertising expense } &38,000\\ \text { Salaries expense } &113,000\\ \text { Depreciation expense } &31,000\\ \text { Insurance expense } &9,000\\ \text { Administrative expense } &10,000\\\end{array}$
All accounts have their normal balances.
Instructions
Prepare all necessary closing entries at December 31, 2020.