Crane Company has the following merchandise account balances at its September 30 year end: Cost of goods sold Delivery expense $120,000 2.300 Sales Sales discounts $187,500 970
Crane Company has the following merchandise account balances at its September 30 year end: Cost of goods sold Delivery expense $120,000 2.300 Sales Sales discounts $187,500 970
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 21GI: Indicate the effect of each of the following errors on the following balance sheet and income...
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Question
![Crane Company has the following merchandise account balances at its September 30 year end:
Cost of goods sold
Delivery expense
Merchandise inventory
Salaries expense
Date
Sept. 30
$120,000
Sept. 30
2,300
22,000
40,000
Sales
Sales discounts
Sales returns and allowances
Supplies
Prepare the entries to close the appropriate accounts to the Income Summary account. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.
List all debit entries before credit entries.)
Account Titles and Explanation
|
$187,500
(To close income statement account with credit balance.)
970
3,100
2,300
Debit
Credit
TOU](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F72825ab2-4ab6-4f85-b223-04864e4f0a53%2Fd8b56376-f4f3-4493-abb5-38199097b9f8%2Fvs2plvp_processed.png&w=3840&q=75)
Transcribed Image Text:Crane Company has the following merchandise account balances at its September 30 year end:
Cost of goods sold
Delivery expense
Merchandise inventory
Salaries expense
Date
Sept. 30
$120,000
Sept. 30
2,300
22,000
40,000
Sales
Sales discounts
Sales returns and allowances
Supplies
Prepare the entries to close the appropriate accounts to the Income Summary account. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.
List all debit entries before credit entries.)
Account Titles and Explanation
|
$187,500
(To close income statement account with credit balance.)
970
3,100
2,300
Debit
Credit
TOU
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