Q1. Following is the year-end adjusted trial balance for Yakima\'s Sporting Good
ID: 2537944 • Letter: Q
Question
Q1. Following is the year-end adjusted trial balance for Yakima's Sporting Goods for the current year (Amounts in Saudi riyal) 4 marks
Yakima’s Sporting Goods
Adjusted Trial Balance
December 31
Dr
Cr
Cash
67,400
Accounts receivable
46,000
Merchandise inventory
50,000
Office supplies
800
Accounts payable
16,000
Salaries payable
850
Common stock
50,000
Retained earnings
75,530
Dividends
5,000
Sales
500,000
Sales returns & allowances
4,500
Sales discounts
4,250
Cost of goods sold
382,450
Sales salaries expense
44,000
Advertising expense
8,150
Office salaries expense
24,325
Office supplies expense
450
Interest expense
5,055
Totals
642,380
642,380
Required: Prepare the closing entries and post closing trial balance at December 31 for the current year.
Yakima’s Sporting Goods
Adjusted Trial Balance
December 31
Dr
Cr
Cash
67,400
Accounts receivable
46,000
Merchandise inventory
50,000
Office supplies
800
Accounts payable
16,000
Salaries payable
850
Common stock
50,000
Retained earnings
75,530
Dividends
5,000
Sales
500,000
Sales returns & allowances
4,500
Sales discounts
4,250
Cost of goods sold
382,450
Sales salaries expense
44,000
Advertising expense
8,150
Office salaries expense
24,325
Office supplies expense
450
Interest expense
5,055
Totals
642,380
642,380
Explanation / Answer
Closing entry :
Prepare post closing trial balance :
date accounts & explanation debit Credit Dec 31 Sales revenue 500000 Income summary 500000 (To close revenue account) Dec 31 Income summary 473180 Sales returns & allowances 4500 Sales discounts 4250 Cost of goods sold 382450 Sales salaries expense 44000 Advertising expense 8150 Office salaries expense 24325 Office supplies expense 450 Interest expense 5055 (To close expense account) Dec 31 Income summary 26820 Retained earnings 26820 (To close income summary account) Dec 31 Retained earnings 5000 Dividend 5000 (TO close dividend account)Related Questions
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