The following statement of profit or loss extracts are from entities employing different inventory recording methods. Required
Question:
The following statement of profit or loss extracts are from entities employing different inventory recording methods.
Required
(a) Using the information above, prepare closing general journal entries for both the periodic and perpetual inventory systems.
(b) Post these entries to the appropriate general ledger accounts.
MICHAEL LTD Statement of profit or loss (extract) Perpetual inventory method Sales revenue Less: Sales returns and allowances Net sales revenue Less: Cost of sales Gross profit $154275 9075 145 200 104544 $ 40656
Step by Step Answer:
a Closing journal entries for Michael Ltd Perpetual inventory method Record the sales returns and al...View the full answer
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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