Journalize the other necessary adjustment for Jan. 2016 and answer the question. Thank you!
100 101 102 103 104 105 106 107 CHART OF ACCOUNTS Assets 400 Revenues Cash 401 Sales Accounts Receivable 402 Sales Retum and Allowances Allowance for Doubtful Accounts Merchandise Inventory 500 Expenses Prepaid Rent 501 Cost of Goods Sold Store Supplies 502 Utilities Expense Store Fumiture 503 Salaries Expense Accumulated Depreciation - Store Fumiture 504 Rent Expense 505 Taxes and Licenses Expense Liabilities 506 Store Supplies Expense Accounts Payable 507 Depreciation Expense - Store Fumiture Salaries Payable 508 Doubtful Accounts Expense Unearned sales 509 Miscellaneous Expense 510 Freight out Equity 511 Inventory shortage Maria Lopez, Capital 512 Income Summary 108 200 201 202 203 300 301 The following are the transactions for January 2016 of Ken Merchandising : January 01 On January 01, 2016, Ken invested 500,000 cash into Ken Merchandising. On the same date, he paid 66,000 for six months' rent on the store space, P13,000 for business licenses and permits, and P60,000 for various store furniture. January 01 He also bought P90,000 worth of office supplies on account with the intention to sell them at a higher price. The company paid 500 for the shipping fee. FOB Terms: FOB Shipping point, Freight Collect. January 02 However, the next day, the business received a P2,500 credit memo for allowance granted on the purchased merchandise. The supplies were bought from Fact Supplies Store on terms n/60. January 04 The business bought from Star Supplies Shop P10,000 worth of supplies to be used in the store on terms 50% down payment, balance n/30. January 10 Michaela, a part time employee, was able to sell some of the store's merchandise to Mr. Daniel for P15,000 on terms 50% downpayment, balance 2/10, n/30. FOB Terms: FOB Destination, Freight Collect. Mr. Daniel paid 900 shipping fee. January 15 The business sold to Mrs. Cooper merchandise for P10,000 on terms 2/10, n/30. January 25 Mr. Jonas paid the business P40,000 for merchandise bought on the same day. Mr. Jonas already paid all the merchandise in full, however, he requested that some merchandise be delivered to his new business address sometime next month. January 31 At the end of the month, the business paid utilities totaling P5000 and miscellaneous expenses amounting to P4,000. Merchandise inventory as of January 31, 2016, is P15,500, based on physical count. This excludes the amount of inventory to be delivered, based on January 25 transaction. Instruction: Use Perpetual Inventory System To determine the cost of goods sold in each sales transaction, the gross profit is 40% based on cost. (Sales Amount times 1.4) Journalize the other necessary adjustment for January 2016. Question: Is there any missing merchandise inventory? Justify your answer by giving poof (ex. computation)
