Required information With a perpetual system, it is sometimes necessary to make an adjustment for inventory...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Required information With a perpetual system, it is sometimes necessary to make an adjustment for inventory shrinkage, which is normally charged to Cost of Goods Sold. New revenue recognition rules require additional adjusting entries that are explained in the appendix. Temporary accounts closed to Income Summary for a merchandiser include Sales, Sales Discounts, Sales Returns and Allowances, and Cost of Goods Sold. Knowledge Check 01 The company's adjusted trial balance includes the following accounts balances: Cash, $15,000; Equipment, $85,000: Accumulated Depreciation, $25,000; Accounts Payable, $10,000; Retained earnings, $63,500; Dividends, $2,000; Sales, $56,000; Sales Returns and Allowances, $3,000; Sales Discounts, $1,500; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have normal balances. Prepare the second closing entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns. View transaction list Journal entry worksheet The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated Depreciation, $25,000; Accounts Payable, $10,000; Owner, Capital, $63,500; Owner, Withdrawals, $2,000; Sales, $56,000; Sales Returns and Allowances, www Note: Enter debits before credits. General Journal Debit Credit Journal entry worksheet < Depreciation, $25,000; Accounts Payable, $10,000; Owner, Capital, $63,500; Owner, Withdrawals, $2,000; Sales, $56,000; Sales Returns and Allowances, $3,000; Sales Discounts, $1,500; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have normal balances. Note: Enter debits before credits. Date Dec. 31 Record entry General Journal Clear entry Debit Credit View general journal 3 Required information With a perpetual system, it is sometimes necessary to make an adjustment for inventory shrinkage, which is normally charged to Cost of Goods Sold. New revenue recognition rules require additional adjusting entries that are explained in the appendix. Temporary accounts closed to Income Summary for a merchandiser include Sales, Sales Discounts, Sales Returns and Allowances, and Cost of Goods Sold. Knowledge Check 01 The company's adjusted trial balance includes the following accounts balances: Cash, $15,000; Equipment, $85,000: Accumulated Depreciation, $25,000; Accounts Payable, $10,000; Retained earnings, $63,500; Dividends, $2,000; Sales, $56,000; Sales Returns and Allowances, $3,000; Sales Discounts, $1,500; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have normal balances. Prepare the second closing entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns. View transaction list Journal entry worksheet The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated Depreciation, $25,000; Accounts Payable, $10,000; Owner, Capital, $63,500; Owner, Withdrawals, $2,000; Sales, $56,000; Sales Returns and Allowances, www Note: Enter debits before credits. General Journal Debit Credit Journal entry worksheet < Depreciation, $25,000; Accounts Payable, $10,000; Owner, Capital, $63,500; Owner, Withdrawals, $2,000; Sales, $56,000; Sales Returns and Allowances, $3,000; Sales Discounts, $1,500; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have normal balances. Note: Enter debits before credits. Date Dec. 31 Record entry General Journal Clear entry Debit Credit View general journal 3
Expert Answer:
Answer rating: 100% (QA)
Closing books of accounts is a four step process whic... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
Students also viewed these mechanical engineering questions
-
It is sometimes necessary to prepare isotopically labeled samples of organic substances for probing biological transformations and reaction mechanisms. Various sources of the radioactive mass-14...
-
Inventory turnover is calculated as cost of goods sold divided by ending inventory . 1. True 2. False
-
A company reports the following: Cost of goods sold $510,000 Average inventory 60,000 Determine (a) The inventory turnover and (b) The number of days sales in inventory. Round to one decimal place
-
Develop, debug, and document a program to determine the roots of a quadratic equation, ax2 + bx + c, in either a high-level language or a macro language of your choice. Use a subroutine procedure to...
-
How does a TV broad cast have characteristics of a public good? What about cable services such as HBO?
-
A carboxylic acid with molecular formula C 5 H 10 O 2 is treated with thionyl chloride to give compound A. Compound A has only one signal in its 1 H NMR spectrum. Draw the structure of the product...
-
Explain the nature and roles of accounting and finance.
-
The 2010 oil spill in the Gulf of Mexico caused the oil firm BP and the U. S. government to greatly increase purchases of boat services, various oil-absorbing materials, and other goods and services...
-
On January 1, 2011, Mick Goldberg invested in an apartment project in Prince George, BC on an all-equity basis with no debt financing. The property cost $1,700,000 with the following apportionment:...
-
Can establishing a multinational corporation or a joint venture serve the principles of social entrepreneurship? Would some options lend themselves better to social entrepreneurship than others? What...
-
A 0.5 kg ball is thrown up words: what is the maximum height reached by the ball. What will be its velocity at maximum height?
-
What is air-conditioning? What is comfort air-conditioning?
-
Describe self priming devices.
-
What is a pump? What are its functions?
-
How do you classify the pumps?
-
Explain the working of a single acting plunger pump.
-
Numerous sources report that terrorist organizations have joined with the drug cartels in Mexico to form a coalition effort for future terrorist attacks and other criminal efforts directed against...
-
The tractor is used to lift the 150-kg load B with the 24-mlong rope, boom, and pulley system. If the tractor travels to the right at a constant speed of 4 m/s, determine the tension in the rope when...
-
Quarterly budgeted overhead costs for two different levels of activity follow. The 2,000 level was the expected level from the master budget. The actual activity level was 1,700 hours. Required: 1....
-
Consider each of the following independent situations: a. A computer service agreement in which a company pays $150 per month and $15 per hour of technical time b. Fuel cost of the companys fleet of...
-
Obtain Wal-Marts 2010 annual report either through the Investor Relations portion of its website (do a web search for Wal-Mart investor relations) or go to www.sec.gov and click Search for company...
-
On July 31, 2020, Magnus's Muffins paid \(\$ 18,000\) for business insurance for the next year. Record the entries for the purchase of the insurance by recording it as an expense and then making a...
-
On November 1, 2020, Freya Albatter's orthodontic office received a \(\$ 2,500\) prepayment from a client for dental work to be performed on November 22. The appointment got postponed until January...
-
On April 1, 2020, you prepaid three months of rent for a total of \(\$ 18,000\). Give your adjusting entry to record rent expense at April 30, 2020. Include the date of the entry and an explanation....
Study smarter with the SolutionInn App