Question

Question 2 Presented below is information related to Cullumber Company, owned by D. Flamont, for the month of January 2017. EPrepare the necessary closing entries. D. Flamont did not withdraw any cash during the month of January. (Credit account titl

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1) Adjusting entry

Date Account title and explanation Debit Credit
Jan 31 Cost of goods sold (21500-19000) 2500
Inventory 2500

2) Closing entry

Date account and explanation Debit Credit
Jan 31 Sales 386000
Income summary 386000
(To close income statement accounts with credit balances)
Jan 31 Income summary 325700
Sales discount 9400
Sales return and allowance 13100
Cost of goods sold 208500
Freight out 8000
Insurance expense 11300
Rent expense 19200
Salaries expense 56200
(To close income statement accounts with debit balances)
Jan 31 Income summary 60300
Retained earnings 60300
(To close income summary)
Add a comment
Know the answer?
Add Answer to:
Question 2 Presented below is information related to Cullumber Company, owned by D. Flamont, for the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Presented below is information related to Novak Industries for the month of January 2020. €25,100 Ending...

    Presented below is information related to Novak Industries for the month of January 2020. €25,100 Ending inventory per perpetual records Ending inventory actually on hand Cost of goods sold Freight-out Insurance expense Rent expense Salaries and wages expense Sales discounts Sales returns and allowances Sales revenue €11,650 21,740 58,420 11,130 15.000 419,730 24,500 222,060 6,760 Prepare the necessary adjusting entry for inventory. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...

  • Presented below is information related to Crane Corporation for the month of January 2020. Cost of...

    Presented below is information related to Crane Corporation for the month of January 2020. Cost of goods sold $207,000 Salaries and wages expense $65,660 Delivery expense 7,550 Sales discounts 8,330 Insurance expense 12,410 Sales returns and allowances 14,230 Rent expense 18,260 Sales revenue 356,900 Prepare the necessary closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the...

  • Thank you. thumbs up! Exercise 5-08 a-b Presented below is information related to Garland Co. for...

    Thank you. thumbs up! Exercise 5-08 a-b Presented below is information related to Garland Co. for the month of January 2020. $21,600 Ending inventory per perpetual records Ending inventory actually on hand Cost of goods sold Freight-out Insurance expense Rent expense Salaries and wages expense Sales discounts Sales returns and allowances Sales revenue $12,000 20,000 55,000 10,000 13,000 380,000 21,000 218,000 7,000 Prepare the necessary adjusting entry for inventory. (Credit account titles are automatically indented when amount is entered. Do...

  • Presented below is information related to equipment owned by Swifty Company at December 31, 2020. Cost...

    Presented below is information related to equipment owned by Swifty Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $9,270,000 1,030,000 7,210,000 4,944,000 Assume that Swifty will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required,...

  • Presented below is information related to equipment owned by Marigold Company at December 31, 2020. Cost...

    Presented below is information related to equipment owned by Marigold Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $9,360,000 1,040,000 7,280,000 4,992,000 Assume that Marigold will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required,...

  • Presented below is information related to equipment owned by Nash Company at December 31, 2020. Cost...

    Presented below is information related to equipment owned by Nash Company at December 31, 2020. Cost $9,180,000 Accumulated depreciation to date 1.020,000 Expected future net cash flows 7.140,000 Fair value 4,896,000 Assume that Nash will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required,...

  • Presented below is information related to equipment owned by Marigold Company at December 31, 2020. Cost...

    Presented below is information related to equipment owned by Marigold Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $9,360,000 1,040,000 7,280,000 4,992,000 Assume that Marigold will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required,...

  • Presented below is information related to equipment owned by Wildhorse Company at December 31, 2020. Cost...

    Presented below is information related to equipment owned by Wildhorse Company at December 31, 2020. Cost $10,620,000 Accumulated depreciation to date 1,180,000 Expected future net cash flows 8,260,000 Fair value 5,664,000 Assume that Wildhorse will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required,...

  • Exercise 11-16 Presented below is information related to equipment owned by Cheyenne Company at December 31,...

    Exercise 11-16 Presented below is information related to equipment owned by Cheyenne Company at December 31, 2017. Cost $10,800,000 Accumulated depreciation to date 1,200,000 Expected future net cash flows 8,400,000 Fair value 5,760,000 Assume that Cheyenne will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry...

  • *Exercise 11-16 Presented below is information related to equipment owned by Ivanhoe Company at December 31,...

    *Exercise 11-16 Presented below is information related to equipment owned by Ivanhoe Company at December 31, 2017. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,620,000 1,180,000 8,260,000 5,664,000 Assume that Ivanhoe will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT