Question content area top left

Part $1$

Tree TopTree$$Top

Company is a service based company that rents canoes for use on local lakes and rivers. At the beginning of the new$$year$,$

Tree TopTree$$Top

Company decided to carry and sell$$T$-$shirts with its logo printed on them.

Tree TopTree$$Top

Company uses the perpetual inventory system to account for the inventory. During

JanuaryJanuary

$20252025,$

Tree TopTree$$Top

Company completed these

merchandising transactions

LOADING...

$,$

and posted the merchandising transactions to the

ledger

LOADING...

accounts.

$...$

Question content area top right

Part $1$

Tree TopTree$$Top

Company does not typically prepare adjusting and closing entries each$$month$,$ but the company is surprised at how popular the shirts are and wishes to know the net income for

JanuaryJanuary

and would also like to understand how to prepare the closing entries for a merchandising company. During

JanuaryJanuary

$20252025,$

Tree TopTree$$Top

Company completed the following$$non$-$merchandising transactions:

LOADING...

$($Click

the icon to view the$$non$-$merchandising transactions.$)$

Read the

requirements

LOADING...

$.$

Question content area bottom

Part $1$

Requirement $1.$ Journalize and post the

JanuaryJanuary

transactions. Omit explanations. Use the ledger provided for posting.

Begin by journalizing the$$non$-$merchandising

JanuaryJanuary

transactions. Omit explanations. $($Record debits$$first$,$ then credits. Exclude explanations from any journal$$entries$.)$

The opening balances of each account$($that were determined after recording the

JanuaryJanuary

merchandising$$transactions$)$ have been entered for you. Post the

JanuaryJanuary

$$non$-$merchandising transactions you recorded above using the dates as posting references. Compute each account$$balance$,$ and denote the balance as Bal. $($For any transactions that occurred on the same date that affect the same$$account$,$ post to the account in the same order as you prepared the journal entries above. For any accounts with a zero balance after posting the

JanuaryJanuary

$$non$-$merchandising transactions, select a$"$Bal$."$ reference and enter a$"0"$ on the normal side of the$$T$-$account.$)$

Review the journal entries you prepared above.

Requirement $2.$ Journalize and post the adjusting entries for the month of

JanuaryJanuary.

Omit explanations. Denote each adjustment as Adj. Compute each account$$balance$,$ and denote the balance as Bal.

Begin by journalizing the adjusting entries for the month of

JanuaryJanuary.

Omit explanations. $($Record debits$$first$,$ then credits. Exclude explanations from any journal$$entries$.)$

Enter the unadjusted balance of each account by selecting a$"$Bal$."$ reference and entering the amount on first line and on the appropriate side of the$$T$-$account. Post the

JanuaryJanuary

adjusting entries you recorded above using$"$Adj$."$ along with the applicable letter as posting references on the second line of the necessary$$T$-$accounts. For$$example$,$ for adjustment$($a$),$ select$"$Adj$.($a$)"$ as the appropriate posting reference to post to the accounts. Compute the adjusted balance of each$$account$,$ and denote the balance as Adj. Bal. on the final line of each

$$T$-$account.

$($For accounts with a zero unadjusted$$and$/$or adjusted$$balance$,$ select the$"$Bal$."$ and$/$or$"$Adj$.$Bal$."$ reference and enter a$"0"$ on the normal size of the$$T$-$account.$)$