Monty Clothing is a retailer in Atlanta, Georgia. The company sells gift cards and records the cash received in the Unearned Sales Revenue account. Presented below is the unadjusted trial balance for Monty Clothing as of December 31, 2022. MONTY CLOTHING Unadjusted Trial Balance December 31, 2022 Debit Credit Cash $ 29,800 Accounts Receivable 7,000 Inventory 39,600 Accounts Payable 7,200 Unearned Sales Revenue 5,500 Owner’s Capital 65,500 Owner’s Drawings 4,500 Sales Revenue 258,400 Sales Returns and Allowances 4,200 Sales Discounts 2,500 Interest Revenue 1,300 Cost of Goods Sold 137,400 Advertising Expense 9,600 Salaries and Wages Expense 64,700 Rent Expense 26,900 Utilities Expense 11,700 Totals $337,900 $337,900 Adjustment data: 1. Customers used gift cards to purchase merchandise totaling $4,500. 2. Inventory actually on hand is $37,300. Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 31 enter an account title to adjust unearned sales revenue on December 31 enter a debit amount enter a credit amount enter an account title to adjust unearned sales revenue on December 31 enter a debit amount enter a credit amount (To adjust unearned sales revenue) 2. Dec. 31 enter an account title to adjust inventory on December 31 enter a debit amount enter a credit amount enter an account title to adjust inventory on December 31 enter a debit amount enter a credit amount (To adjust inventory) Prepare a multiple-step income statement for the year. MONTY CLOTHING Income Statement Journalize the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (To close drawings)

Monty Clothing is a retailer in Atlanta, Georgia. The company sells gift cards and records the cash received in the Unearned Sales Revenue account. Presented below is the unadjusted trial balance for Monty Clothing as of December 31, 2022. MONTY CLOTHING Unadjusted Trial Balance December 31, 2022 Debit Credit Cash $ 29,800 Accounts Receivable 7,000 Inventory 39,600 Accounts Payable 7,200 Unearned Sales Revenue 5,500 Owner’s Capital 65,500 Owner’s Drawings 4,500 Sales Revenue 258,400 Sales Returns and Allowances 4,200 Sales Discounts 2,500 Interest Revenue 1,300 Cost of Goods Sold 137,400 Advertising Expense 9,600 Salaries and Wages Expense 64,700 Rent Expense 26,900 Utilities Expense 11,700 Totals $337,900 $337,900 Adjustment data: 1. Customers used gift cards to purchase merchandise totaling $4,500. 2. Inventory actually on hand is $37,300. Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 31 enter an account title to adjust unearned sales revenue on December 31 enter a debit amount enter a credit amount enter an account title to adjust unearned sales revenue on December 31 enter a debit amount enter a credit amount (To adjust unearned sales revenue) 2. Dec. 31 enter an account title to adjust inventory on December 31 enter a debit amount enter a credit amount enter an account title to adjust inventory on December 31 enter a debit amount enter a credit amount (To adjust inventory) Prepare a multiple-step income statement for the year. MONTY CLOTHING Income Statement Journalize the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (To close drawings)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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MONTY CLOTHING Unadjusted Trial Balance December 31, 2022
	Debit	Credit
Cash	$ 29,800
Accounts Receivable	7,000
Inventory	39,600
Accounts Payable		7,200
Unearned Sales Revenue		5,500
Owner’s Capital		65,500
Owner’s Drawings	4,500
Sales Revenue		258,400
Sales Returns and Allowances	4,200
Sales Discounts	2,500
Interest Revenue		1,300
Cost of Goods Sold	137,400
Advertising Expense	9,600
Salaries and Wages Expense	64,700
Rent Expense	26,900
Utilities Expense	11,700
Totals	$337,900	$337,900

Adjustment data:

1.		Customers used gift cards to purchase merchandise totaling $4,500.
2.		Inventory actually on hand is $37,300.

Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Dec. 31	enter an account title to adjust unearned sales revenue on December 31	enter a debit amount	enter a credit amount
		enter an account title to adjust unearned sales revenue on December 31	enter a debit amount	enter a credit amount
		(To adjust unearned sales revenue)
2.	Dec. 31	enter an account title to adjust inventory on December 31	enter a debit amount	enter a credit amount
		enter an account title to adjust inventory on December 31	enter a debit amount	enter a credit amount
		(To adjust inventory)

Prepare a multiple-step income statement for the year.

MONTY CLOTHING Income Statement

Journalize the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)




















	(To close drawings)

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Step 1

Prepare the adjustment entries:

Step 2

Prepare a multiple-step income statement for the year.

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