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BIZKID COMPANY'S 1. Prepare closing entries as of August 31, 2011 (the perpetual inventory system is used).

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BizKid Company’s adjusted trial balance on August 31, 2011, its fiscal year-end, follows.




Debit


Credit

  Merchandise inventory

$
41,500




  Other (noninventory) assets


43,710




  Total liabilities




$
24,300

  N. Kidman, Capital





21,500

  N. Kidman, Withdrawals


8,100




  Sales





226,200

  Sales discounts


2,290




  Sales returns and allowances


13,000




  Cost of goods sold


72,400




  Sales salaries expense


32,700




  Rent expense—Selling space


8,800




  Store supplies expense


1,900




  Advertising expense


14,000




  Office salaries expense


29,800




  Rent expense—Office space


3,500




  Office supplies expense 


300












  Totals

$
272,000

$
272,000








On August 31, 2010, merchandise inventory was $25,000. Supplementary records of merchandising activities for the year ended August 31, 2011, reveal the following itemized costs.



  Invoice cost of merchandise purchases
$
92,000  
  Purchase discounts received

2,700  
  Purchase returns and allowances

4,900  
  Costs of transportation-in

4,500


Required
1. Prepare closing entries as of August 31, 2011 (the perpetual inventory system is used).

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