The adjusted trial balance of The Open Space at November 30, 2023, is shown below. The...
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The adjusted trial balance of The Open Space at November 30, 2023, is shown below. The Open Space uses the nernetual inventory system Requirement 1. Journalize The Open Space's closing entries. First, close the revenue accounts. (Record debits first, then credits. Exclude explanations from journal entries.) Date November 30 Sales Revenue Sales Returns Accounts Debit 130000 Credit 2800 Adjusted Trial Balance Account Title Cash Accounts receivable Inventory Supplies Furniture The Open Space Adjusted Trial Balance November 30, 2023 Accumulated amortization-furniture Ananunta navabla $ Debit 5,000 30,000 13,700 860 30,000 $ Credit 28,000 7.900 - X Adjusted Trial Balance Accumulated amortization-furniture Accounts payable Salaries payable Unearned sales revenue Note payable, long-term A. Travers, capital A. Travers, withdrawals Sales revenue Sales returns Cost of goods sold 28,000 2,800 70,500 16 700 $ 28,000 7,800 1,100 5,400 34,000 3,240 130,000 - X Adjusted Trial Balance Note payable, long-term A. Travers, capital A. Travers, withdrawals Sales revenue Sales returns Cost of goods sold Selling expenses General expenses Interest expense Total 28,000 34,000 3,240 130,000 2,800 70,500 16,700 10,800 1,180 $ 209,540 $ 209,540 - X Required 1. Journalize The Open Space's closing entries. 2. Compute the gross margin percentage and the rate of inventory turnover for 2023. Inventory on hand one year ago was $10,700. For 2022, The Open Space's gross margin was 35 percent, and inventory turnover was 4.6 times during the year. Does the two-year trend in these ratios suggest improvement or deterioration in profitability? The adjusted trial balance of The Open Space at November 30, 2023, is shown below. The Open Space uses the nernetual inventory system Requirement 1. Journalize The Open Space's closing entries. First, close the revenue accounts. (Record debits first, then credits. Exclude explanations from journal entries.) Date November 30 Sales Revenue Sales Returns Accounts Debit 130000 Credit 2800 Adjusted Trial Balance Account Title Cash Accounts receivable Inventory Supplies Furniture The Open Space Adjusted Trial Balance November 30, 2023 Accumulated amortization-furniture Ananunta navabla $ Debit 5,000 30,000 13,700 860 30,000 $ Credit 28,000 7.900 - X Adjusted Trial Balance Accumulated amortization-furniture Accounts payable Salaries payable Unearned sales revenue Note payable, long-term A. Travers, capital A. Travers, withdrawals Sales revenue Sales returns Cost of goods sold 28,000 2,800 70,500 16 700 $ 28,000 7,800 1,100 5,400 34,000 3,240 130,000 - X Adjusted Trial Balance Note payable, long-term A. Travers, capital A. Travers, withdrawals Sales revenue Sales returns Cost of goods sold Selling expenses General expenses Interest expense Total 28,000 34,000 3,240 130,000 2,800 70,500 16,700 10,800 1,180 $ 209,540 $ 209,540 - X Required 1. Journalize The Open Space's closing entries. 2. Compute the gross margin percentage and the rate of inventory turnover for 2023. Inventory on hand one year ago was $10,700. For 2022, The Open Space's gross margin was 35 percent, and inventory turnover was 4.6 times during the year. Does the two-year trend in these ratios suggest improvement or deterioration in profitability?
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Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
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