The account balances in the ledger of the Dindorf Company on January 31 (the end of its
Question:
The data for the adjustments are
1. Cost of merchandise sold, $302,990.
2. Depreciation on store equipment, $12,750.
3. Supplies inventory, January 31, $5,210. (Purchases of supplies during the year were debited to the Supplies Inventory account.)
4. Expired insurance, $4,660.
5. Interest accrued on notes payable, $3,730.
6. Sales salaries earned but not paid to employees, $3,575.
7. Interest earned on savings accounts, but not recorded, $390.
Required:
a. Set up T accounts with the balances given above.
b. Journalize and post adjusting entries, adding other T accounts as necessary.
c. Journalize and post closing entries.
d. Prepare an income statement for the fiscal year and a fiscal year-end balance sheet.
Step by Step Answer:
Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant