Question

Help Save & Exit Submit O Required information The following information applies to the questions displayed below! Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory T. Nix, Capital T. Nix, withdrawals Sales Sales discounts $ 37,800 Sales returns and allowances 115,300 Cost of goods sold 7,000 Depreciation expense 160,200 Salaries expense 4,700 Miscellaneous expenses $ 6,500 105,000 10,300 32,580 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $35.900 Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 5-9. (The solution from QS 5-9 is required to complete this question.) View transaction list Journal entry worksheet < 1 > Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits < Prev 10 of 23 !!! Next > MacBook Air 000 ODO Dil DD co 912 FB FO F4 F10 FS A % 5 & 7 C 9 ) 0 . Il + 6 8 T R T Y U I } 1 O { [ Р

Answer 1

Date	Particulars	Debit(in$)	Credit(in$)
31st July	Sales Account                      Dr.	149000
	Closing inventory account Dr.	35900
	To Revenue and Expense A/c		184900
	( Sales recorded after deduting the sales return,Sales discount)
	Revenue and Expense A/c Dr.	190600
	To Opening Merchendise inventory A/c		37800
	To Cost of goods sold A/c		105000
	To Salaries A/c		32500
	To Miscellaneous A/c		5000
	To Depriciation A/c		10300
	T. Nix Capital A/c	12700
	To Withdrawal A/c		7000
	To Loss from Revenue and Expense A/c		5700

Note-1 Debit balance of the Revenue and expence account transferred to the Capital Account i.e. 190600-184900=5700