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: Advertising Expense $36,080 Depreciation Expense 39,580 Dividends 67,200 Freight In 13,570 Inventory, January 1 374,950 Inventory, January 31 464,050 Miscellaneous Expense 9,410 Purchases 1,755,000 Purchases Discounts 33,160 Purchases Returns and Allowances 45,540 Salaries Expense 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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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:

Advertising Expense $36,080
Depreciation Expense 39,580
Dividends 67,200
Freight In 13,570
Inventory, January 1 374,950
Inventory, January 31 464,050
Miscellaneous Expense 9,410
Purchases 1,755,000
Purchases Discounts 33,160
Purchases Returns and Allowances 45,540
Salaries Expense 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.

Jan. 31
Jan. 31
Jan. 31
Jan. 31
Transcribed Image Text:Jan. 31 Jan. 31 Jan. 31 Jan. 31
Cost of goods sold
Based on the following data:
Estimated returns of July sales
$33,170
Inventory, July 1
174,495
Inventory, July 31
160,660
Purchases
1,035,945
Purchases returns and allowances
Purchases discounts
Freight in
42,390
21,415
16,135
Determine the cost of goods sold for July.
Cost of goods sold: S
Stockholders' equity
Oa. 1s shown on the income statement.
Ob. is usually equal to cash on hand.
Oc. includes pasd in capital and liahilaties.
Od. ncludes retained earnings and paid-in capital.
Transcribed Image Text:Cost of goods sold Based on the following data: Estimated returns of July sales $33,170 Inventory, July 1 174,495 Inventory, July 31 160,660 Purchases 1,035,945 Purchases returns and allowances Purchases discounts Freight in 42,390 21,415 16,135 Determine the cost of goods sold for July. Cost of goods sold: S Stockholders' equity Oa. 1s shown on the income statement. Ob. is usually equal to cash on hand. Oc. includes pasd in capital and liahilaties. Od. ncludes retained earnings and paid-in capital.
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