- Description
ACC 291T Wk 4 – Practice: Connect Knowledge Check (New)
The following list includes selected permanent accounts and all of the temporary accounts from the December 31 unadjusted trial balance of Emiko Co., a business owned by Kumi Emiko. Emiko Co. uses a perpetual inventory system.
| Debit | Credit | ||||
| Merchandise inventory | $ | 36,500 | |||
| Prepaid selling expenses | 6,900 | ||||
| K. Emiko, Withdrawals | 46,000 | ||||
| Sales | $ | 581,000 | |||
| Sales returns and allowances | 20,100 | ||||
| Sales discounts | 6,300 | ||||
| Cost of goods sold | 238,000 | ||||
| Sales salaries expense | 61,000 | ||||
| Utilities expense | 21,500 | ||||
| Selling expenses | 42,500 | ||||
| Administrative expenses | 118,000 | ||||
Additional Information
Accrued and unpaid sales salaries amount to $2,500. Prepaid selling expenses of $2,200 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows $32,600 of goods still available.
(a) Use the above account balances along with the additional information, prepare the adjusting entries.
(b) Use the above account balances along with the additional information, prepare the closing entries.
A company reports the following sales-related information.
| Sales, gross | $ | 285,000 | Sales returns and allowances | $ | 20,000 | ||
| Sales discounts | 5,700 | Sales salaries expense | 11,700 | ||||
Prepare the net sales portion only of this company’s multiple-step income statement.
Clear Water Co. reports the following balance sheet accounts as of December 31.
| Buildings | $ | 47,500 |
| Accounts receivable | 2,900 | |
| Land | 20,000 | |
| Merchandise inventory | 8,800 | |
| Accounts payable | 5,900 | |
| Cash | 9,800 | |
| Notes payable (due in 7 years) | 48,000 | |
| Office supplies | 2,800 | |
| O.Water, Capital | 34,000 | |
| Wages payable | 3,900 | |
Required:
Prepare a classified balance sheet.
Save-the-Earth Co. reports the following income statement accounts for the year ended December 31.
| Sales discounts | $ | 870 |
| Office salaries expense | 3,200 | |
| Rent expense—Office space | 2,700 | |
| Advertising expense | 740 | |
| Sales returns and allowances | 370 | |
| Office supplies expense | 740 | |
| Cost of goods sold | 11,400 | |
| Sales | 44,000 | |
| Insurance expense | 2,200 | |
| Sales staff salaries | 3,700 | |
Required:
Prepare a multiple-step income statement for the year ended December 31.
Required information
[The following information applies to the questions displayed below.]
Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system).
| Merchandise inventory | $ | 39,300 | Sales returns and allowances | $ | 6,200 | |
| T. Nix, Capital | 118,300 | Cost of goods sold | 105,900 | |||
| T. Nix, Withdrawals | 7,000 | Depreciation expense | 10,600 | |||
| Sales | 159,600 | Salaries expense | 34,000 | |||
| Sales discounts | 3,200 | Miscellaneous expenses | 5,000 | |||
A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $38,000.
Prepare the entry to record any inventory shrinkage.
Required information
[The following information applies to the questions displayed below.]
Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system).
| Merchandise inventory | $ | 39,300 | Sales returns and allowances | $ | 6,200 | |
| T. Nix, Capital | 118,300 | Cost of goods sold | 105,900 | |||
| T. Nix, Withdrawals | 7,000 | Depreciation expense | 10,600 | |||
| Sales | 159,600 | Salaries expense | 34,000 | |||
| Sales discounts | 3,200 | Miscellaneous expenses | 5,000 | |||
A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $38,000.
Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 5-9. (The solution from QS 5-9 is required to complete this question.)
Fit-for-Life Foods reports the following income statement accounts for the year ended December 31.
| Gain on sale of equipment | $ | 6,350 | Depreciation expense—Office copier | $ | 600 | |
| Office supplies expense | 770 | Sales discounts | 15,700 | |||
| Insurance expense | 1,240 | Sales returns and allowances | 4,000 | |||
| Sales | 215,000 | TV advertising expense | 2,100 | |||
| Office salaries expense | 31,500 | Interest revenue | 600 | |||
| Rent expense—Selling space | 11,000 | Cost of goods sold | 88,100 | |||
| Sales staff wages | 23,000 | Sales commission expense | 13,000 | |||