This problem uses both the statement of earnings and the balance sheet of Indigo Books and Music

Question:

This problem uses both the statement of earnings and the of Indigo Books and Music Inc. that appear in Appendix A at the end of this book and on MyAccountingLab.
1. Journalize Indigo's closing entries for the year ended March 29, 2014, up to the line Operating profit (loss). Instead of closing to a Capital account, close to the Retained Earnings account (since Indigo is a corporation, not a proprietorship). What was the amount closed to Retained Earnings?
2. Indigo is Canada's largest book, gift, and specialty toy retailer, operating stores in all 10 provinces and one territory as well as online through its website indigo.ca. What amounts go into the inventory value shown on the Why are online shipping costs excluded from the inventory total? See Note 7 in the annual report for this detail.
3. On the the company reports an inventory figure. What amounts are shown on the for the Inventory account for March 29, 2014, and March 30, 2013?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...