Journalizing adjusting and closing entries, and computing gross profit [10-15 min]Emerson...

Journalizing adjusting and closing entries, and computing gross profit [10-15 min]

Emerson St. Paul Book Shop’s accounts at June 30, 2012, included the following unadjusted balances:

The physical count of inventory on hand on June 30, 2012, was $5,000.

Requirements

1. Journalize the adjustment for inventory shrinkage.

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2. Journalize the closing entries for June 2012.

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3. Compute the gross profit.