Exercise 4-10 Preparing adjusting and closing entries for a merchandiser LO P3 The following list includes selected permanent accounts and all of the temporary accounts from the December 31 unadjusted trial balance of Emiko Co., a business owned by Kumi Emiko. Emiko Co. uses a perpetual inventory system. Credit Debit $ 35,000 6,600 43,000 $569,000 Merchandise inventory Prepaid selling expenses Dividends Sales Sales returns and allowances Sales discounts Cost of goods sold Sales salaries expense Utilities expense Selling expenses Administrative expenses 19,500 6,000 232,000 58,000 20,000 41,000 115,000 Additional Information Accrued and unpaid sales salaries amount to $2,200. Prepaid selling expenses of $4,000 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows $31,700 of goods still available. (a) Use the above account balances along with the additional information, prepare the adjusting entries. (b) Use the above account balances along with the additional information, prepare the closing entries. Required A Required B Use the above account balances along with the additional information, prepare the closing entries. View transaction list Journal entry worksheet Record closing of debit balances in temporary accounts. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Income summary Sales returns and allowances Sales discounts Cost of goods sold colod no Exercise 4-11 Computing net sales for multiple-step income statement LO P4 A company reports the following sales-related information. Sales, gross Sales discounts $ 240,000 Sales returns and allowances 4,800 Sales salaries expense $ 19,000 10,800 Prepare the net sales portion only of this company's multiple-step income statement. Multiple-Step Income Statement (Partial) 0 Net sales ProBuilder has the following June 30 fiscal-year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $11,500. Of the $11,500 of receivables, $2,750 are within a 2% discount period, meaning that it expects buyers to take $55 in future discounts arising from this period's sales. a. Prepare the June 30 fiscal-year-end adjusting journal entry for future sales discounts. View transaction list Journal entry worksheet 1 > Record the expected sales discounts. Note: Enter debits before credits. Date General Journal Debit Credit June 30 ProBuilder reports merchandise sales of $94,000 and cost of merchandise sales of $32,900 in its first year of operations ending June 30. It makes fiscal-year-end adjusting entries for estimated future returns and allowances equal to 1% of sales, or $940, and 1% of cost of sales, or $329. a. & b. Prepare the June 30 fiscal-year-end adjusting journal entry for future returns and allowances related to sales and cost of sales. View transaction list Journal entry worksheet 1 2 Record the expected sales to be refunded. Note: Enter debits before credits. General Journal Debit Credit Date June 30
