Homework Help is Here – Start Your Trial Now!
Business
Accounting
Basga Company uses the periodic inventory system. Beginning inventory amounted to $135,961. A physical count reveals that the latest inventory amount is $144,639. Record the adjusting entries, using T accounts. Merchandise Inventory Income Summary (a) Adj. (b) Adj. Bal. (a) Adj. (b) Adj. On December 31, Marchant Company took a physical count of its merchandise inventory. It operates under the perpetual inventory system. The physical count amounted to $174,755. The Merchandise Inventory account shows a balance of $177,376. Journalize the adjusting entry. GENERAL JOURNAL PAGE DATE DESCRIPTION POST. REF. DEBIT CREDIT 20-- Adjusting Entries Dec. 31

Basga Company uses the periodic inventory system. Beginning inventory amounted to $135,961. A physical count reveals that the latest inventory amount is $144,639. Record the adjusting entries, using T accounts. Merchandise Inventory Income Summary (a) Adj. (b) Adj. Bal. (a) Adj. (b) Adj. On December 31, Marchant Company took a physical count of its merchandise inventory. It operates under the perpetual inventory system. The physical count amounted to $174,755. The Merchandise Inventory account shows a balance of $177,376. Journalize the adjusting entry. GENERAL JOURNAL PAGE DATE DESCRIPTION POST. REF. DEBIT CREDIT 20-- Adjusting Entries Dec. 31

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

please see images

### Accounting Inventory Adjustment Example Basga Company uses the periodic inventory system. The initial inventory was valued at $135,961. A subsequent physical count indicates that the current inventory is $144,639. Record the adjusting entries using T accounts. #### T Account Layout - **Merchandise Inventory** - Bal. - (b) Adj. - **Income Summary** - (a) Adj. - (b) Adj. --- On December 31, Marchant Company performed a physical inventory count. This company uses the perpetual inventory system. The physical count resulted in an inventory amount of $174,755. The current Merchandise Inventory account balance is $177,376. Journalize the adjusting entry as follows: #### General Journal | DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |----------|-----------------|------------|-------|--------| | 20-- | Adjusting Entries | | | | | Dec. 31 | | | | | ### Explanation of Tables and Diagrams - **T Accounts**: These are simple visual representations of accounts that show debits and credits. The Merchandise Inventory and Income Summary T accounts will reflect the entries needed to adjust the inventory records. - **General Journal**: This table is used to formally record the adjusting entries on December 31. The date, description, and the amounts to be debited and credited need to be filled in based on the inventory adjustments.
Transcribed Image Text:### Accounting Inventory Adjustment Example Basga Company uses the periodic inventory system. The initial inventory was valued at $135,961. A subsequent physical count indicates that the current inventory is $144,639. Record the adjusting entries using T accounts. #### T Account Layout - **Merchandise Inventory** - Bal. - (b) Adj. - **Income Summary** - (a) Adj. - (b) Adj. --- On December 31, Marchant Company performed a physical inventory count. This company uses the perpetual inventory system. The physical count resulted in an inventory amount of $174,755. The current Merchandise Inventory account balance is $177,376. Journalize the adjusting entry as follows: #### General Journal | DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |----------|-----------------|------------|-------|--------| | 20-- | Adjusting Entries | | | | | Dec. 31 | | | | | ### Explanation of Tables and Diagrams - **T Accounts**: These are simple visual representations of accounts that show debits and credits. The Merchandise Inventory and Income Summary T accounts will reflect the entries needed to adjust the inventory records. - **General Journal**: This table is used to formally record the adjusting entries on December 31. The date, description, and the amounts to be debited and credited need to be filled in based on the inventory adjustments.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Database design
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS