Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I am having a hard time figuring out the closed journal entries. Valley Companys adjusted trial balance on August 31, 2015, its fiscal year-end, follows.
I am having a hard time figuring out the closed journal entries.
Valley Companys adjusted trial balance on August 31, 2015, its fiscal year-end, follows. |
Debit | Credit | ||||||
Merchandise inventory | $ | 41,600 | |||||
Other (noninventory) assets | 45,030 | ||||||
Total liabilities | $ | 25,800 | |||||
Common stock | 15,680 | ||||||
Retained earnings | 3,920 | ||||||
Dividends | 8,800 | ||||||
Sales | 226,200 | ||||||
Sales discounts | 2,270 | ||||||
Sales returns and allowances | 12,500 | ||||||
Cost of goods sold | 73,400 | ||||||
Sales salaries expense | 32,100 | ||||||
Rent expenseSelling space | 8,200 | ||||||
Store supplies expense | 1,700 | ||||||
Advertising expense | 13,500 | ||||||
Office salaries expense | 28,200 | ||||||
Rent expenseOffice space | 3,800 | ||||||
Office supplies expense | 500 | ||||||
|
|
|
| ||||
Totals | $ | 271,600 | $ | 271,600 | |||
|
|
|
| ||||
|
On August 31, 2014, merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs. |
Invoice cost of merchandise purchases | $ | 91,900 |
Purchase discounts received | 2,700 | |
Purchase returns and allowances | 4,500 | |
Costs of transportation-in | 4,900 | |
|
Required: | |
1. | Prepare closing entries as of August 31, 2015 (the perpetual inventory system is used). |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started