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Late Learner
Oct 13, 2009, 03:50 AM
What journals do I prepare for closing inventories.

I have an opening inventory balance of $8,000 and need to show journals to get the closing inventory balance of $12,000.

My trial balance shows net purchases of $77,000 and net sales of $283,500.

The other relevant (to me) items are buying exps $1,000, Advertising $4,000, salaries $35,000, Office Exps $21,000 - have I left something out?

My understanding is Opening balance + net purchases - COGS = Closing

What do I include in COGS and what journals do I do?

ROLCAM
Oct 13, 2009, 04:18 AM
STOCK AT JUNE 2009

DEBIT OPENING STOCK 1/07/2008 P & L X
CREDIT B/SHEET OPENING STOCK B/S X
CREDIT CLOSING STOCK 30/06/09 P & L X
DEBIT B/S CLOSING STOCK B/S X

Booking the Stock Position at end of the Year.

NO COGS Journals are required.