I have merchandise of $27,050 cost of goods sold 171,225.
I have to adjust and post a journal entries and prepare a multiple step income statement. Statement of owners equity and a balance sheet. My balance sheet is out by 2000. The question that I have to adjust is "Unearned sales revenue of $975 is still unearned at Dec 31, 2011. On the sales that were earned, cost of goods sold was $2,000. I think this 2000 is the reason why I'm out by that much. inc. statement must be wrong.