Question

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger:

Accounts payable $40,000
Insurance expense $8,600
Accounts receivable 54,500
Prepaid insurance 5,275
Accumulated Rent expense 21,400
depreciation 83,325
Retained earnings 50,950
Capital stock 50,000
Salaries expense 66,000
Cash 7,150
Salaries payable 150
Depreciation expense 23,500
Service revenue 151,000
Dividends 28,000
Supplies 2,500
Equipment 155,000
Supplies expense 3,500

Required:
Journalize the entries to close the appropriate accounts.

Answer 1

Check the explanation

Step-by-step explanation:

JOURNAL ENTRIES UNDER PERPETUAL INVENTORY SYSTEM

$ $

a) Cash A/c. Dr. 10000

To Sales A/c. 10000

Cost of Goods Sold A/c. Dr. 4500

To Inventory A/c. 4500

b) Account Receivables A/c. Dr. 8500

To Sales A/c. 8500

Cost of Goods Sold A/c. Dr. 4100

To Inventory A/c. 4100

c) Account Receivables A/c. Dr. 3500

To Sales A/c. 3500

Cost of Goods Sold A/c. Dr. 1600

To Inventory A/c. 1600

d) Inventory Dr. 255

To Cash A/c. 255

e) Bank A/c. Dr. 3150*

Inventory A/c. Dr. 175

To Account Receivable A/c. 3325

*3325-175=3150