The following list includes selected permanent accounts and all of the temporary
ID: 2333320 • Letter: T
Question
The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2017, unadjusted trial balance of Emiko Co.. Emiko Co. uses a perpetual inventory system Debit Credit $ 30,000 5,600 33,000 Merchandise inventory Prepaid selling expense:s Dividends Sales Sales returns and allowances Sales discounts Cost of goods sold Sales salaries expense Utilities expense Selling expenses Administrative expenses $529,000 17,500 5,000 212,000 48,000 15,000 36,000 105,000 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 $28,700 of goods still available (a) Use the above account balances along with the additional information, prepare the adjusting entries. (b) Use the above account balances along with the additional information, prepare the closing entries.Explanation / Answer
Adjusting entry :
Closing entries :
Date account and explanation debit credit Sales salary expense 1700 Sales salary payable 1700 (To record accured salaries) Selling expense 3000 Prepaid selling expense 3000 (To record selling expense) Cost of goods sold (30000-28700) 1300 Merchandise inventory 1300 (To record inventory adjusted)Related Questions
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