Cruisers Boat Supply uses the periodic inventory method. The adjusted trial balance of Cruisers Boat Supply at

Cruiser’s Boat Supply uses the periodic inventory method. The adjusted trial ­balance of Cruiser’s Boat Supply at December 31, 2015, follows:

Requirements
1. Journalize the required closing entries at December 31, 2015. Assume ending Merchandise Inventory is $ 53,260.
2. Set up T-accounts for Income Summary; Retained Earnings; and Dividends. Post the closing entries to the T-accounts and calculate their ending balances.
3. How much was Cruiser’s net income or netloss?

Transcribed Image Text:

CRUISER'S BOAT SUPPLY Adjusted Trial Balance December 31, 2015 Balance Account Titie Cash Accounts Receivable Merchandise Inventory (beginning) Office Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Notes Payable, long-tem Common Stock Retained Eamings Debit $ 3,360 15.960 44.380 8,960 59.500 19,460 12,880 1.400 11,060 30,000 20,040 60,200 Sales Revenue Sales Returns and Allowances Sales Discounts Interest Revenue Purchases Purchase Returns and Allowances Purchase Discounts Selling Expense Administrative Expense 328,300 1.400 3,220 274,720 94,820 8.200 38,080 20.720 $ 529,380 529,380