Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 5.13SE
Journalizing closing entries-periodic inventory system
D & L Printing Supplies’s accounting records include the following accounts at December 31, 2016.
| Purchases | $ 189,600 |
| Accumulated Depreciation-Building | $23,000 |
| Accounts Payable | 7,900 |
| Cash | 17,900 |
| Rent Expense | 9,000 |
| Sales Revenue | 295,100 |
| Building | 47,900 |
| Depreciation Expense-Building | 3,600 |
| Common Stock | 58,000 |
| Dividends | 27,100 |
| 21,800 | |
| Sales Discounts | 4,300 |
| Merchandise Inventory, Beginning | 122,000 |
| Interest Expense | 2,200 |
| Sales Returns and Allowances | 17,500 |
| Merchandise Inventory, Ending | 99,500 |
| Notes Payable | 11,500 |
| Purchase Returns and Allowances | 21,200 |
| Purchase Discounts | 2,600 |
Requirements
1. Journalize the required closing entries for D & L Printing Supplies assuming that D & L uses the periodic inventory system.
2. Determine the ending balance in the Retained Earnings account.
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Closing Entries Using Periodic Inventory System
United Rug Company is a small rug retailer owned and operated by Pat Kirwan. After the accounts have been adjusted on January 31, the following selected account balances were taken from the ledger:
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$36,080
Depreciation Expense
39,580
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67,200
Freight In
13,570
Inventory, January 1
374,950
Inventory, January 31
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45,540
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377,000
Sales
2,220,500
The estimated cost of merchandise returns from January sales is $20,000.
Journalize the closing entries on January 31 in the order as presented in the chapter.
For a compound transaction, if an amount box does not require an entry, leave it blank.
Select account balances from the December 31, 2015, trial balances of the Gracy Companyare listed below:Debit CreditInventory, January 1, 2015 $12,500Purchases 25,000Salaries Expense 5,000Rent Expense 3,250General and Administrative Expenses 2,500Sales $61,000Dividends Declared 3,500In addition, the following information is available:- The cost of the ending inventory at December 31, 2015, is $7,50-UVI Online ACC 3010 Mid-term Assessment 2- $890 of salaries has accrued of December 31.- On March 30, Gracy purchased a 12-month insurance policy for $240. The purchase wasdebited to Prepaid Insurance.- On December 1, the company paid 2 months’ rent in advance. The $1,400 payment wasdebited to Rent Expense.- In December, a customer paid $1,000 in advance for merchandise that will be shipped byGracy in 2016. The amount received was credited to Sales.- Gracey estimates its bad dets to be 1% of sales (after all adjustments)- The insurance tax rate is 30%.Gracy Company uses a periodic inventory…
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Chapter 5 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 5 - Which account does a merchandiser use that a...Ch. 5 - The two main inventory accounting systems are the...Ch. 5 - The journal entry for the purchase of inventory on...Ch. 5 - JC Manufacturing purchase d inventory for 5,300...Ch. 5 - Prob. 5QCCh. 5 - Suppose Daves Discounts Merchandise Inventory...Ch. 5 - Which of the following accounts would be closed at...Ch. 5 - What is the order of the subtotals that appear on...Ch. 5 - Prob. 9QCCh. 5 - The journal entry for the purchase of inventory on...
Ch. 5 - What is a merchandiser, and what is the name of...Ch. 5 - Prob. 2RQCh. 5 - Describe the operating cycle of a merchandiser.Ch. 5 - What is Cost of Goods Sold (COGS), and where is it...Ch. 5 - How is gross profit calculated, and what does it...Ch. 5 - What are the two types of inventory accounting...Ch. 5 - What is an invoice?Ch. 5 - What account is debited when recording a purchase...Ch. 5 - Prob. 9RQCh. 5 - What is a purchase return? How does a purchase...Ch. 5 - Prob. 11RQCh. 5 - How is the net cost of inventory calculated?Ch. 5 - What are the two journal entries involved when...Ch. 5 - When granting a sales allowance, is there a return...Ch. 5 - Prob. 15RQCh. 5 - Prob. 16RQCh. 5 - Prob. 17RQCh. 5 - What are the four steps involved in the closing...Ch. 5 - Prob. 19RQCh. 5 - Prob. 20RQCh. 5 - Prob. 21RQCh. 5 - Prob. 22RQCh. 5 - Prob. 23ARQCh. 5 - When recording purchase returns and purchase...Ch. 5 - What account is debited when recording the payment...Ch. 5 - Prob. 26ARQCh. 5 - Is an adjusting entry needed for inventory...Ch. 5 - Highlight the differences in the closing process...Ch. 5 - Describe the calculation of cost of goods sold...Ch. 5 - Comparing periodic and perpetual inventory systems...Ch. 5 - Journalizing purchase transactions Consider the...Ch. 5 - Journalizing purchase transactions Consider the...Ch. 5 - Journalizing sales transactions Journalize the...Ch. 5 - Journalizing purchase and sales transactions...Ch. 5 - Adjusting for inventory shrinkage Carlas...Ch. 5 - Journalizing closing entries Rockwall RV Centers...Ch. 5 - Use the following information to answer Short...Ch. 5 - Use the following information to answer Short...Ch. 5 - Computing the gross profit percentage Morris...Ch. 5 - Journalizing purchase transactions-periodic...Ch. 5 - Prob. 5.12SECh. 5 - Journalizing closing entries-periodic inventory...Ch. 5 - Computing cost of goods sold in a periodic...Ch. 5 - For all exercises, assume the perpetual inventory...Ch. 5 - Journalizing purchase transactions from an invoice...Ch. 5 - Journalizing purchase transactions Hartford...Ch. 5 - Computing missing amounts Consider the following...Ch. 5 - Journalizing sales transactions Journalize the...Ch. 5 - Journalizing purchase and sales transactions...Ch. 5 - Journalizing adjusting entries and computing gross...Ch. 5 - Use the following information to answer Exercises...Ch. 5 - Prob. 5.23ECh. 5 - Use the following information to answer Exercises...Ch. 5 - Computing the gross profit percentage Cupcake...Ch. 5 - Journalizing purchase transactionsperiodic...Ch. 5 - Journalizing sales transactions-periodic inventory...Ch. 5 - Journalizing purchase and sales...Ch. 5 - Journalizing dosing entries-periodic inventory...Ch. 5 - Computing cost of goods sold in a periodic...Ch. 5 - Journalizing purchase and sale transactions...Ch. 5 - Journalizing purchase and sale transactions...Ch. 5 - Preparing a multi-step income statement,...Ch. 5 - Journalizing adjusting entries, preparing adjusted...Ch. 5 - Preparing a single-step income statement,...Ch. 5 - Journalizing purchase and sale...Ch. 5 - A Preparing a multi-step income statement and...Ch. 5 - Journalizing purchase and sale transactions...Ch. 5 - Prob. 5.39BPCh. 5 - Prob. 5.40BPCh. 5 - Journalizing adjusting entries, preparing adjusted...Ch. 5 - Prob. 5.42BPCh. 5 - Prob. 5.43BPCh. 5 - Preparing a multi-step income statement and...Ch. 5 - Journalizing purchase and sale transactions,...Ch. 5 - Journalizing purchase and sale transactions,...Ch. 5 - Comprehensive Problem for Chapters 1-5 Completing...Ch. 5 - Prob. 5.1CTDCCh. 5 - Dobbs Wholesale Antiques makes all sales under...Ch. 5 - Rae Philippe was a warehouse manager for Atkins...Ch. 5 - Prob. 5.1CTFSC
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