Question

Data Table Big Rita's Music Company uses a perpetual inventory system. The adjusted trial balance of Big Rita's Music Company at June 30, 2024, follows: (Click the icon to view the adjusted trial balance.) Read the requirements. Big Rita's Music Company Adjusted Trial Balance Requirement 1. Prepare Big Rita's multi-step income statement for the year ended June 30, 2024. (Use a minus sign or parentheses to show oth June 30, 2024 Big Rita's Music Company Income Statement Balance Account Title Debit Credit Year Ended June 30, 2024 Cash $ 4,000 Accounts Receivable 38,400 Merchandise Inventory 17,300 Estimated Returns Inventory 350 Office Supplies 500 Furniture 39,400 $ 8,900 13,500 850 Accumulated Depreciation Furniture Accounts Payable Refunds Payable Salaries Payable Unearned Revenue Notes Payable, long-term Common Stock 500 7,100 13,000 10,000 Net Income (Loss) Retained Earnings 13,400 Dividends 41,000 Requirement 2. Journalize Big Rita's closing entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry Start by closing revenues and other credit accounts for the period. Do not close the expenses; this will be done in the next step. Print Done Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

$ $ 180,000 72,000 108,000 $ Big Rita's Music Company Income Statement Year Ended June 30, 2024 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Selling Expense $ 18,900 Administrative Expense $ 14,000 Total Operating Expenses Operating income Other Revenue and (Expenses) Interest Expenses (1,900) Sales Discounts forfeited $ 500 Total other Revenue and expenses) Net Income/(Loss) $ $ 32,900 75,100 $ $ $ (1,400) 73,700

Credit Date Account titles and Explanation June.30 Sales Revenues Clos. (1) Sales Discounts forfeited Income Summery (To close revenues) $ $ Debit 180,000 500 $ 180,500 $ 106,800 June.30 Income Summery Clos. (2) Cost of Goods Sold Selling Expense Administrative Expense Interest Expense (To Close expenses) $ $ $ $ 72,000 18,900 14,000 1,900 $ 73,700 June.30 Income Summery Clos. (3) Retained Earnings (To close net income) $ 73,700 $ 41,000 June.30 Retained Earnings Clos. (4) Dividends (To close dividend) $ 41,000

$ $ Big Rita's Music Company Post-Closing Trial Balance June 30,2024 Balance Account Title Debit Credit Cash $ 4,000 Accounts Receivable $ 38,400 Merchandise Inventory $ 17,300 Estimated Returns inventory $ 350 Office Supplies 500 Furniture $ 39,400 Accumulated Depreciation - Furniture $ 8,900 Accounts Payable $ 13,500 Refunds Payable $ 850 Salaries Payable $ 500 Unearned revenue $ 7,100 Notes Payable, long-term $ 13,000 Common Stock $ 10,000 Retained Earnings $ 46,100 Totals $ 99,950 $ 99,950 Working Notes: Retained earnings = $13,400+$73,700-$41,000 = $46,100