Knowledge Check $01$

The company's adjusted trial balance includes the following accounts balances: Cash, $$15,000$; Equipment, $$85,000$; Accumulated

Depreciation, $$25,000$; Accounts Payable, $$10,000$; Retained earnings, $$63,500$; Dividends, $$2,000$; Sales, $$56,000$; Sales Returns

and Allowances, $$3,000$; Sales Discounts, $$1,500$; Depreciation Expense, $$25,000$; and Salaries Expense, $$23,000.$ All accounts have

normal balances.

Prepare the second closing entry by selecting the account names from the pull$-$down menus and entering dollar amounts in the debit

and credit columns.

Knowledge Check $01$

A company uses a periodic inventory system. On August $1,$ the company had $6$ items of beginning inventory with a cost of $$7$ per unit.

On August $3,$ the company purchased $16$ units at $$14$ per unit. Then, on August $5,$ the company sold $12$ units. The $12$ units sold

consisted of $7$ units from the August $3$rd purchase and $5$ units from the August $1$st beginning inventory. Using specific identification, the

cost of the $12$ units sold is

Cost of the units sold