Statement of profit or loss data for Goddard Pty Ltd were provided for 2015 and 2016 in E5.11.

Data in  E5.11

Goddard Pty Ltd reported the following statement of profit or loss data for a 2-year period.

Goddard Pty Ltd uses a periodic inventory system. The inventories at 1 July 2015 and 30 June 2016 are correct. However, the ending inventory at 30 June 2015 is overstated by $12 000. 

Required

Using the 2016 data, prepare closing entries up to gross profit.

Transcribed Image Text:

Sales Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of sales Gross profit 2015 $420 000 64000 346000 410 000 80 000 000 $ 90000 330 2016 $500 000 80 000 404 000 484 000 104 000 380 000 $120 000