E5-6 The adjusted trial balance of Sang Company shows the following data pertain
ID: 2343224 • Letter: E
Question
E5-6 The adjusted trial balance of Sang Company shows the following data pertaining to ales at the end of its fiscal year October 31, 2017: Sales Revenue $820,000, Freight-Out 16,000, Sales Returns and Allowances $25,000, and Sales Discounts $13,000. Instructions (a) Prepare the sales section of the income statement. (b) Prepare separate closing entries for () sales revenue, and (2) the contra accounts to 0 0 sales revenue. E5-7 Tim Jarosz Company had the following account balances at year end: Cost of Goods Sold $60,000, Inventory $15,000, Operating Expenses $29,000, Sales Revenue $115,000,e Sales Discounts $1,200, and Sales Returns and Allowances $1,700. A physical count of ( inventory Instructions determines that merchandise inventory on hand is $13,600. (a) Prepare the adjusting entry necessary as a result of the physical count. (b) Prepare closing entries. E5-8 Presented below is information relat ed to Hoerl Co. for the month of January 2017. F Insurance expense Salaries and wages expense Sales returns and allowances 12,000 20,000 ( 55,000 10,000 Ending inventory per perpetual records Ending inventory actually 21,600 Rent expense 21,000 Sales discounts 218,000 on hand 13,000 Cost of goods sold 380,000 Freight-out Instructions 7,000 Sales revenue for inventory.Explanation / Answer
E 5 - 6 :
a.
Freight-out is part of selling expenses, to be deducted from gross profit.
b.
E 5 - 7 :
In the books of Tim Jarosz Company:
a. Adjusting Entry:
b. Closing Entries:
Sang Company Income Statement ( Partial ) For the year ended October 31, 2017 $ $ Sales 820,000 Sales Returns and Allowancs (25,000) Sales Discounts (13,000) (38,000) Net Sales 782,000Related Questions
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