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The following list includes selected permanent accounts and all of the temporary

ID: 2448094 • Letter: T

Question

The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2013, unadjusted trial balance of Emiko Co., a business owned by Kumi Emiko. Emiko Co. uses a perpetual inventory system.

  

  

Accrued sales salaries amount to $1,700. Prepaid selling expenses of $2,000 have expired. A physical count of year-end merchandise inventory shows $31,294 of goods still available.

  

Use the above account balances along with the additional information, prepare the adjusting entries.

Accrued sales salaries amount to $1,700.

Prepaid selling expenses of $2,000 have expired.

A physical count of year-end merchandise inventory shows $31,294 of goods still available.

The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2013, unadjusted trial balance of Emiko Co., a business owned by Kumi Emiko. Emiko Co. uses a perpetual inventory system.

Explanation / Answer

1. Sales Salaries Expense A/c DR $ 1,700      To Accrued Salaries A/c                          $ 1,700 2. Selling Expense A/c DR $ 5,000      To Prepaid Selling Expenses A/c        $ 5,000 3. Cost of Goods Sold A/c DR $ 606       To Merchandise Inventory A/c          $ 606