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-   -   Preparing adjusting entries and closing entries (https://www.askmehelpdesk.com/showthread.php?t=240465)

  • Jul 22, 2008, 02:44 PM
    OxOa
    Preparing adjusting entries and closing entries
    I cannot find any examples about this question on my book or anywhere else
    Please help.~

    The following list includes selected permanent account and all of the temporary accounts from the December 31, 2008, unadjusted trial balance of Emiko Co. a business owned by
    Kumi Emiko. Use these account balances along with the additional information to
    Journalize (a) adjusting entries (b) closing entries. Emiko Co. uses a perpetual inventory system.

    .. . Debit.. . Credit
    Merchandise inventory.. . $30,000
    Prepaid selling expenses.. . 5,600
    Dvidends.. . 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 expenses.. . 15,000
    Selling expenses.. . 36,000
    Administrative expense.. . 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 $28,450 of goods
    Still available.




    How to prepare adjusting and closing entries for a merchandise for this question above?
    Please help!
  • Nov 16, 2010, 03:07 PM
    jrnich1902
    a)
    Sales salaries expense 1,700
    Sales salaries payable 1,700

    Selling Expenses 3,000
    Prepaid selling expenses 3,000

    Cost of Merchandise Sold 1,550
    Merchandise Inventory 1,550
    (30,000-28,450)
  • Nov 16, 2010, 06:20 PM
    pready

    The closing entry involves closing out your Income Sttement accounts (temporary accounts) to the Income Summary Account and closing the Income Summary account to Retained Earnings (permanent account).
  • Mar 5, 2012, 08:14 PM
    mirianx
    A.income summary 194000
    Sales salaries expense 48000
    Utilities expense 15000
    Selling expense 36000
    Administrative expense 105000

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