essaynest EssayNest

The following list includes selected permanent accounts and all of the temporary accounts from…

Get your original paper written from scratch starting at just $10 per page with a plagiarism report and free revisions included!

4.8

rating

SiteJabber

4.9

rating

ResellerRatings

4.9

rating

Reviews.io

Hire A Writer

The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2015, unadjusted trial balance of Emiko Co., a business owned by Kumi Emiko. Emiko Co. uses a perpetual inventory system.

Debit Credit
Merchandise inventory $30,000
Prepaid selling expenses 5,600
K. Emiko, Withdrawals 33,000
Sales $529,000
Sales returns and allowances 17,500
Sales discounts 5,000
Cost of goods sold 212,000
Sales salaries expense 48,000
Utilities expense 15,000
Selling expenses 36,000
Administrative expenses 105,000

Additional Information: Accrued sales salaries amount to $1,700. Prepaid selling expenses of $3,000 have expired. A physical count of year-end merchandise inventory shows $28,450 of goods still available.

(a) Use the above account balances along with the additional information, prepare the adjusting entries. Entry #1: Accrued sales salaries amount to $1,700. Entry #2: Prepaid selling expenses of $3,000 have expired. Entry #3: A physical count of year-end merchandise inventory shows $28,450 of goods still available.

b) Use the above account balances along with the additional information, prepare the closing entries. Entry #1: Record closing of credit balances in temporary accounts. Entry #2:Record closing of debit balances in temporary accounts. Entry #3:Record closing of income summary account. Entry #4: Record closing of withdrawals account.

Get your paper done by an expert.