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23 January, 18:04

Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'lt uses the perpetual inventory system). Merchandise inventory $ 45,800 Sales returns and allowances $ 4,900T. Nix, Capital 131,300 Cost of goods sold 109,800T. Nix, Withdrawals 7,000 Depreciation expense 11,900Sales 162,600 Salaries expense 40,500Sales discounts 4,500 Miscellaneous expenses 5,000A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $43,850Record the entry to close temporary revenue and account with a credit balance.

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  1. 23 January, 18:20
    0
    Nix'It Company

    Close Revenue

    DR CR

    Net Sales (162,600-4900) $157,700

    Income Summary 157,700

    Close Expenses Account

    Income Summary 171,700

    Cost of Goods sold 109,800

    Depreciation expenses 11,900

    Salaries expenses 40,500

    Miscellaneous expenses 5,000

    sales discount 4,500

    Close Income Summary account

    Retained earnings 14,000

    Income summary account (157,700-171,700) 14,000

    Close Withdrawal

    Nix, Capital 7,000

    Nix withdrawal 7,000
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