Question

Check my wa Exercise 4-10 Preparing adjusting and closing entries for a merchandiser LO P3 The following list includes selected permanent accounts and all of the temporary accounts from the December 31 unadjusted trial balance of Emiko Co., a business owned by Kumi Emiko. Emiko Co. uses a perpetual inventory system. Credit Debit $ 27,000 7,000 47.000 $585,000 Merchandise Inventory Prepaid selling expenses Dividends Sales Sales returns and allowances Sales discounts Cost of goods sold Sales salaries expense Utilities expense Selling expenses Administrative expenses 20,300 6,400 240,000 62,000 22.000 43,000 119,000 Additional Information Accrued and unpaid sales salaries amount to $1,200. Prepaid selling expenses of $2,300 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows $32,900 of goods still available. (a) Use the above account balances along with the additional information, prepare the adjusting entries. (b) Use the above account balances along with the additional information, prepare the closing entries. Complete this question by entering your answ rs In the tabs below. Required A Required B Use the above account balances along with the additional information, prepare the adjusting entries. < Prev 5 of 5 Next

Answer 1

part a:- Adjusting entries

Event	Date	General journal	Debit (in $)	Credit (in$)
1.	Dec.31	sales salaries expenses	1200
		To salaries payable		1200
		(To record accured salaries)
2.	Dec.31	selling expenses	3700
		To prepaid selling expenses		3700
		(To record selling expenses)
3.	Dec.31	cost of goods sold	4100
		To merchandise inventory (37000-32900)		4100
		(To record inventory adjusted)

Part b:- closing entries

Event	Date	General journal	Debit (in$)	Credit (in$)
1.	Dec.31	sales	585000
		To income summary		585000
		(To close revenue account)
2.	Dec.31	income summary	521700
		To sales return and allowance		20300
		To sales discount		6400
		To cost of goods sold (240000+4100)		244100
		To sales salaries expenses (62000+1200)		63200
		To utilities expenses		22000
		To selling expenses (43000+3700)		46700
		To Administrative expenses		119000
		(To record closing of expenses to income summary)
3.	Dec.31	income summary	63300
		To retained earnings (585000-521700)		63300
		(To close net income to retained earnings)
4.	Dec.31	Retained earnings	47000
		To dividend		47000
		(To close dividend account)