Rent expense and salarles expense are equally divided between selling activities and general and administrative actlvities. Walker Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2019, follow. a. Store supplies still available at fiscal year-end amount to $2.050. b. Expired insurance, an administrative expense, for the fiscal year is $1.520. c. Depreciation expense on store equipment, a selling expense, is $6,500 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $9.870 of inventory is still available at fiscal year-end. Answer is not complete. Requirement General Journal General Ledger Trial Balance Multiple Step Single Step Is Balance Sheet Ratios For transactions 1-4 prepare the required adjusting journal entries. For transactions 5-8, prepare the required closing entries. No Account Title Debit Credit Date January 31 1 4,100 Store supplies expense Store supplies >> 4,100 2 January 31 1.520 Insurance expense Prepaid insurance 1,520 3 January 31 ON 8,500 Depreciation expense - Store equip. Accumulated depreciation - Store equip. 6.500 4 January 31 > 830 Cost of goods sold Merchandise inventory 630 5 January 31 118.000 Sales Income summary 118,000 6 January 31 108,130 X Income summary Sales discounts Sales returns and allowances Cost of goods sold Salaries expense Rent expense Advertising expense Store supplies expense Insurance expense Depreciation expense - Store equip. 3.500 3.700 25.130 30,000 Ooo 12.000 10.150 4,100 1.520 6.500 7 January 31 10.750 Income summary Retained earnings O 10.750 8 January 31 Retained earnings 4,300 > Dividends 4,300 Rent expense and salarles expense are equally divided between selling activities and general and administrative actlvities. Walker Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2019, follow. a. Store supplies still available at fiscal year-end amount to $2.050. b. Expired insurance, an administrative expense, for the fiscal year is $1.520. c. Depreciation expense on store equipment, a selling expense, is $6,500 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $9.870 of inventory is still available at fiscal year-end. Answer is not complete. Requirement General Journal General Ledger Trial Balance Multiple Step Single Step Is Balance Sheet Ratios For transactions 1-4 prepare the required adjusting journal entries. For transactions 5-8, prepare the required closing entries. No Account Title Debit Credit Date January 31 1 4,100 Store supplies expense Store supplies >> 4,100 2 January 31 1.520 Insurance expense Prepaid insurance 1,520 3 January 31 ON 8,500 Depreciation expense - Store equip. Accumulated depreciation - Store equip. 6.500 4 January 31 > 830 Cost of goods sold Merchandise inventory 630 5 January 31 118.000 Sales Income summary 118,000 6 January 31 108,130 X Income summary Sales discounts Sales returns and allowances Cost of goods sold Salaries expense Rent expense Advertising expense Store supplies expense Insurance expense Depreciation expense - Store equip. 3.500 3.700 25.130 30,000 Ooo 12.000 10.150 4,100 1.520 6.500 7 January 31 10.750 Income summary Retained earnings O 10.750 8 January 31 Retained earnings 4,300 > Dividends 4,300
