Ask Question
9 January, 19:44

The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2018, unadjusted trial balance of Emiko Co ... Emiko Co. uses a perpetual inventory system. Debit Credit Merchandise inventory $ 30,000 Prepaid selling expenses 5,600 Dividends 33,000 Sales $ 529,000 Sales returns and allowances 17,500 Sales discounts 5,000 Cost of goods sold 212,000 Sales salaries expense 48,000 Utilities expense 15,000 Selling expenses 36,000 Administrative expenses 105,000 Additional Information Accrued sales salaries amount to $1,700. Prepaid selling expenses of $3,000 have expired. A physical count of year-end merchandise inventory shows $28,700 of goods still available. (a) Use the above account balances along with the additional information, prepare the adjusting entries. (b) Use the above account balances along with the additional information, prepare the closing entries.

+2
Answers (2)
  1. 9 January, 21:37
    0
    Dec 31, 2018

    Dr Sales Salaries expense 1,700

    Cr Sales Salaries payable 1,700

    Dec 31, 2018

    Dr Selling expense 3,000

    Cr Prepaid selling expense 3,000

    Dec 31, 2018

    Dr COGS 1,300

    Cr Merchandise inventory 1,300

    COGS = Merchandise inventory - Year end inventory = 30,000 - 28700 = 1300

    Dec 31, 2018

    Dr Sales Revenue 529,000

    Cr Income summary 529,000

    Dec 31, 2018

    Dr Income summary 444,500

    Cr Sales return and allowances 17,500

    Cr Sales discounts 5,000

    Cr COGS 213,300

    Cr Sales salaries payable 49,700

    Cr Utilities expense 15,000

    Cr Selling expense 39,000

    Cr Administrative expenses 105,000

    Dec 31, 2018

    Dr Income Summary 84,500

    Cr Retained earnings 84,500

    Net Income = Total Sales - Total Expenses = 529,000 - 444,500 = 84,500

    Dec 31, 2018

    Dr Retained earnings 33,000

    Cr Withdrawal 33,000
  2. 9 January, 23:00
    0
    General Journal

    A. Adjusting entries

    Dec 31

    Dr Sales salaries expense1,700

    Cr Salaries payable1,700

    Dec 31

    Dr Selling expenses 3,000

    Cr Prepaid selling expenses 3,000

    Dec 31

    Dr Cost of goods sold (30,000 - 28,700) 1,300

    Cr Merchandise inventory 1,300

    B. Closing Entries

    31 Dec

    Dr Sales 529,000

    Cr Income summary 529,000

    Dec 31

    Dr Income summary 444,500

    Cr Sales returns and allowances 17,500

    Cr Sales discounts 5,000

    Cr Cost of goods sold (212,000+1300) 213,300

    Cr Sales salaries expense (48,000+1,700) 49,700

    Cr Utilities expense 15,000

    Cr Selling expenses (36,000+3000) 39,000

    Cr Administrative expenses 105,000

    Dec 31

    Dr Income summary (529,000-444,500) 84,500

    Cr Emiko, Capital 84,500

    Dec 31

    Dr Emiko, Capital 33,000

    Cr Emiko, Withdrawals 33,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2018, unadjusted trial ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers