Question: How should I do the adjusting journal entries for closing stock and inventory in this case: Mario, Luciano and the staff undertook a stocktake on

How should I do the adjusting journal entries for closing stock and inventory in this case:

Mario, Luciano and the staff undertook a stocktake on the morning of 30 June 2019. Closing stock (which consists of food, food ingredients and drink - both alcoholic and non-alcoholic) has been reliably ascertained at $22,040 (GST-exclusive).

The trust adopts a periodic inventory system and uses the weighted average cost inventory valuation method for both accounting and taxation purposes. The opening balance of inventory on the first day of business (ie. 1 August 2018) was $16,088.

The bookkeeper, Amanda, did not know how to input the closing stock figure of $22,040 into the MYOB management accounts and specifically asks you to process the relevant journal entry/entries directly into MYOB on her behalf. She has left the opening stock figure of $16,088 (which she entered on 1 August 2018) in the MYOB management accounts as she did not know how to do the adjustment.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!