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    OxOa's Avatar
    OxOa Posts: 1, Reputation: 1
    New Member
     
    #1

    Jul 22, 2008, 02:44 PM
    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!
    jrnich1902's Avatar
    jrnich1902 Posts: 2, Reputation: 1
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    #2

    Nov 16, 2010, 03:07 PM
    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)
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
     
    #3

    Nov 16, 2010, 06:20 PM

    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).
    mirianx's Avatar
    mirianx Posts: 2, Reputation: 1
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    #4

    Mar 5, 2012, 08:14 PM
    A.income summary 194000
    Sales salaries expense 48000
    Utilities expense 15000
    Selling expense 36000
    Administrative expense 105000

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