A physical count indicated that $48,300 of inventory was on hand at the end of t

Question

A physical count indicated that $48,300 of inventory was on hand at the end of the accounting
period.

Record these transactions in a general journal. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare a schedule of costs of goods sold. (Amounts to be deducted should be indicated with minus sign.)

Prepare a income statement.

Prepare a statement of changes in stockholders’ equity.

Prepare a statement of changes in stockholders’ equity.

Prepare a statement of cash flows for 2016. (Amounts to be deducted should be indicated with minus sign.)

[The following information applies to the questions displayed below.] The following trial balance pertains to Benji’s Grocery as of January 1, 2016:

Explanation / Answer

Journal entries in the books of Benji's Grocery are as follows-

Schedule of Cost of goods sold-

Opening Stock 90000
Add:Freight charges 2100
Add:Purchases less return less discount 219186   
Less:Closing stock ( -)48300

Cost of goods sold 262,986

Income Statment:

Statement of changes in stockholders’ equity

Serial no. Particulars Debit($) Credit($) 1 Land A/c Dr
To cash 30000 30000 2 Purchases A/c Dr
   To Accounts payable 230000 230000 3 Freight charges A/c Dr
   To Cash 2100 2100 4 Accounts payable A/c Dr
   To Purchase return 8600 8600 5 Cash A/c Dr.
   To Sales 186000 186000 6 Buyer A/c Dr.
   To Sales 236,000 236,000 7. Accounts payable a/c Dr
   To Cash [$221400-1% of $221400] 219186 219186 8. Selling Expenses a/c Dr
To Cash 28500 28500 9 Cash a/c Dr
   To Buyer 156000 156000 10 Cash a/c dr
   To Buyer 56000 56000 11 Other operating expenses a/c Dr
   To Cash 17100 17100 12 Closing stock a/c Dr
   To Trading & P/L a/c 48300 48300

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