Adjustment for Merchandise Inventory Using T Accounts: Periodic Inventory SystemIbby Smith owns and operates Ibby’s Ice Cream Cones. Her beginning inventory as of January 1, 20--, was $45,000, and her ending inventory as of December 31, 20--, was $57,000. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory. Use the labels shown.(a) Remove the beginning balance in Merchandise Inventory.(b) Add the new balance in Merchandise Inventory. Merchandise Inventory(Beginning Inventory)45,000 fill in the blank 2 fill in the blank 4 Income Summary fill in the blank 6 fill in the blank 8 Feedback Area Feedback Under the periodic inventory system, the Merchandise Inventory account has remained unchanged since a physical count was taken at the end of the last period. Thus, the balance in this account represents last period's ending inventory which, of course, is this period's beginning inventory. To bring the balance sheet up-to-date, the beginning inventory must be removed from this account. In addition, the ending inventory must be entered. Both adjustments also affect the Income Summary account.

Name: Adjustment for Merchandise Inventory Using T Accounts: Periodic Invent
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Adjustment for Merchandise Inventory Using T Accounts: Periodic Inventory SystemIbby Smith owns and operates Ibby’s Ice Cream Cones. Her beginning inventory as of January 1, 20--, was $45,000, and her ending inventory as of December 31, 20--, was $57

Introduction: A periodic inventory system only upgrades the ending inventory balance in the general…

Answered: Adjustment for Merchandise Inventory…

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter14: Adjustments And The Work Sheet For A Merchandising Business

Section: Chapter Questions

Problem 4SEA: WORK SHEET EXTENSIONS FOR MERCHANDISE INVENTORY ADJUSTMENTS: PERIODIC INVENTORY SYSTEM The following...

See similar textbooks

Merchandise Inventory
(Beginning Inventory)	45,000		fill in the blank 2
	fill in the blank 4

Income Summary
	fill in the blank 6		fill in the blank 8

Feedback Area

Feedback

Under the periodic inventory system, the Merchandise Inventory account has remained unchanged since a physical count was taken at the end of the last period. Thus, the balance in this account represents last period's ending inventory which, of course, is this period's beginning inventory. To bring the balance sheet up-to-date, the beginning inventory must be removed from this account. In addition, the ending inventory must be entered. Both adjustments also affect the Income Summary account.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions