Reconstructing Journal Entries, Posting. Gap owns department stores including Old Navy stores. A partial income statement from its annual report for the fiscal year ending in February 1, 2003, showed the following actual numbers and nomenclature ($ in millions):

Transcribed Image Text:

Net sales Costs and expenses Cost of goods sold and occupancy expenses Operating expenses Interest expense Interest income Income taxes Total expenses Net earnings $14,455 9,542 3,901 249 (37) 323 13,978 $ 477 1. Prepare six summary journal entries for the given data. Label your entries a through f. Omit explanations. For simplicity, assume that all transactions (except for cost of products sold) were for cash. One-fourth of the cost of retail sales and occupancy was paid in cash. The other three- fourths represented a decrease in inventories. 2. Post to T-accounts in a ledger for all affected accounts. Key your postings by transaction letter.