Question

my w The following list includes selected permanent accounts and all of the temporary accour 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 $ 35,500 6,700 44,000 $573,000 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 19,700 6,100 234,000 59,000 20,500 41,500 116,000 Additional Information es Accrued and unpaid sales salaries amount to $2,300. Prepaid selling expenses of $2,000 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows $32,000 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 answers in the tabs below. Required A Required B Use the above account balances along with the additional information, prepare the adjusting er View transaction list Journal entry worksheet < 1 2 3 Accrued and unpaid sales salaries amount to $2,300.

Answer 1

(a)	Adjusting Entries
Date	Account Titles and Explanation	Debit ($)	Credit ($)
Dec-31	Sales salaries expense	$ 2,300
	Sales salaries payable		$ 2,300
	(To record the accrued and unpaid sales salaries)
Dec-31	Selling expense	$ 2,000
	Prepaid selling expenses		$ 2,000
	(To record the expired prepaid selling expenses )
Dec-31	Cost of goods sold ( $ 35,500 (-) $ 32,000 )	$ 3,500
	Merchandise inventory		$ 3,500
	(To record the cost of goods sold)
b)	Closing Entries
Date	Account Titles and Explanation	Debit ($)	Credit ($)
Dec-31	Sales	$ 573,000
	Income Summary		$ 573,000
	(To Close the revenue accounts)
Dec-31	Income summary	$ 504,600
	Sales returns and allowances		$ 19,700
	Sales discount		$ 6,100
	Cost of goods sold              ( $ 234,000 + $ 3,500 )		$ 237,500
	Sales salaries expense            ( $ 59,000 + $ 2,300 )		$ 61,300
	Utilities expense		$ 20,500
	Selling expense              ( $ 41,500 + $ 2,000 )		$ 43,500
	Administrative expenses		$ 116,000
	(To Close the expense accounts)
Dec-31	Income summary ( $ 573,000 (-) $ 504,600 )	$ 68,400
	Retained earnings		$ 68,400
	(To Close closing of income summary)
Dec-31	Retained Earnings	$ 44,000
	Dividends		$ 44,000
	(To Close the dividend account)