Question

Bu the b est for the way IN Tore the ring Own er Od 16 OLI ning ( The December a nd effort on and Export Co. GD De 5 S 11.12 59.128 All e 's h ot shows a balance of 58,487 December 31. On December 31, 2017 the n ed the following basket Real Street for December Beli Bele $4.361 Che Ceared Other Account $ 217 Dec Deposit 2.430+ Depot Deposit 1.648 Service Charge 23 304 2.735 Interest 31 300 175 $5,008 Eadeg lance 58.885 Notes: BC bank collection EFT-electronie funds transfer, NSF- onsufficient funds check SC-service charge Aditional is for the bank reconciliation follow Os November 30, 2017 bank reconciliation for the company, there were three standing checks for $217,289 for 326 and 290 for $105. There were no deposits in transitas November 10, 2017 The bank bance November 30, 2017 was $4.361. The Adjusted cash balance was 53,613, The S he was originally received from a customer, R. , in payment of s ound of 2015 The included 15 wervice charge for all of 280 e ves that chegue 306 was led to pay the wlephone bill and chee308 was med top And for collections of counts receivable

Answer 1

Ans 4 Closing entries are the entries passed for closing the temporary accounts (Revenue and Expenses Accounts) at the end of the accounting period. They are done after the financial statement for the accounting year has been prepared. This is done make the temporary accounts zero so that these temporary accounts begins with zero balance in the next accounting period. Closing credit/debit entry is passed in all temporary accounts having debit balance/credit balance before passing the closing entry. The credit /debit amount entered is equal the debit/credit balance prior passing the closing entry. The net amount of closing entries is the Net Income /(Loss) for the period which is ultimately transferred retained earnings/ owners's capital. Closing Entries Particulars Debit Credit Fees Earned $7,950 Income Summary $7,950 (To close fees earned Account) Income Summary $4,150 Wages Expense $4,150 (To close wage expense account) Income Summary $3,800 Owners' Capital $3,800 (To close the Income Summary Account) Owners' Capital $1,000 Drawings $1,000 (To close the drawing Account)

$360 $45 Bank Reconciliation is a process of identifying the difference that exist between the company's bank balance as per bank statement supplied by bank and cash balance as per company's accounting records. Fort Imports and exports Co Bank Reconciliation 31st Dec 2017 Particulars Amount Amount Journal Entry Bank Balance Dec, 31 $8,885 Sr.No Date Particulars Debit Credit Add: 1 31st Dec 2017 Cash $360 Deposit in Transit $1,004 $1,004 Accounts Receivable $9,889 (To record accounts receivable collection) Deduct: 1 31st Dec 2017 Cash $12 Outstanding Check # 290 $105 Interest Income $12 Outstanding Check # 310 $2,400 (To record interest income) Outstanding Check # 307 $3,266 2 31st Dec 2017 Cash Total Deduction ($5,771) Utilities Expense $45 Adjusted Bank Balance $4,118 (To record rectification entry) Cash 3 31st Dec 2017 Accounts Receivable $280 Balance Dec, 31 $5,657 Cash $280 (To record rent payment) Collection of Accounts Receivable ($2620-$2260] $360 4 31st Dec 2017 Rent Expense $1,648 Interest $12 Cash $1,648 Error in posting ($150 - $105] $45 $417 (To record rent payment) $6,074 5 31st Dec 2017 Bank Charges $28 Deduct: Cash $28 NSF Check including charges $280 (To Record bank service charges) Rent Payment $1,648 Note: NO journal entry is required for Deposit in transit and Outstanding checks. Bank Service Charge $28 Total Deduction ($1,956) Adjusted Book Balance $4,118 Add:

10 Oct 7 Ans IV (1) Perpetual inventory System: In this system, the cost of sales and invenries are updated on every sales and purchase transactions. First in, first out method (FIFO): In this method it is assumed that inventory which is purchased first will be sold first and the inventory will consist of recent purchases. Purchase Cost of Good Sold Ending inventory Date No of Unit Cost Per Total Cost No of Unit Cost Per Total Cost No of Unit Cost Per Total Cost Oct 1 $0.00 $85.00 $850.00 $80.00 $160.00 $1,010.00 $0.00 $85.00 $680.00 $85.00 $170.00 $80.00 $160.00 $330.00 Oct 18 $90.00 $360.00 $0.00 $85.00 $170.00 $80.00 $160.00 $90.00 $360.00 $690.00 Oct 26 $0.00 $85.00 $170.00 $90.00 $270.00 $80.00 $160.00 $90.00 $90.00 $420.00 $270.00 Total 4 $360.00 13 $1,100.00 Inventory Cost $270.00 41 WANNANN Debit Credit Ans IV (3) Date Oct 18 $360 Ans IV (2) Particulars Sales (13 x $160] Less : Cost of Good Sold Gross Profit FIFO $2,080.00 ($1,100.00) $980.00 $360 Oct 26 Account Title Merchandise Inventory Cash Cash (5 x $160] Sales Cost of Good sold Merchandise Inventory $800 $800 Oct 26 $420 $420