I am missing information for the closing entries and final question....still stumped after hours. I have attached the images. Here is the problem with instructions.On December 31, 20Y5, the balances of the accounts appearing in the ledger of Wyman Company are as follows:Cash$13,500Accounts receivable72,000Inventory, January 1, 20Y5257,000Estimated returns inventory, January 1, 20Y535,000Office supplies3,000Prepaid insurance4,500Land150,000Store equipment270,000Accumulated depreciation-store equipment55,900Office equipment78,500Accumulated depreciation-office equipment16,000Accounts payable77,800Salaries payable3,000Customer refunds payable50,000Unearned rent8,300Notes payable50,000Common stock150,000Retained earnings365,600Dividends25,000Sales3,280,000Purchases2,650,000Purchases returns and allowances93,000Purchases discounts37,000Freight in48,000Sales salaries expense300,000Advertising expense45,000Delivery expense9,000Depreciation expense-store equipment6,000Miscellaneous selling expense12,000Office salaries expense175,000Rent expense28,000Insurance expense3,000Office supplies expense2,000Depreciation expense-office equipment1,500Miscellaneous administrative expense3,500Rent revenue7,000Interest expense2,000 Required:1.Does Wyman Company use a periodic inventory system or perpetual inventory system? Which account listed would not be used under both inventory systems?2.Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 20Y5. The inventory as of December 31, 20Y5, was $305,000. The estimated cost of customer returns inventory for December 31, 20Y5, is estimated to increase to $40,000. Be sure to complete the statement heading. Refer to the Instructions and the list of Labels and Amount Descriptions for the exact wording of text entries. Negative amount should be indicated by the minus sign. Colons (:) will fill in where needed.3.Prepare the closing entries for Wyman Company as of December 31, 20Y5. Refer to the Chart of Accounts for exact wording of account titles.4.What would be the net income if the perpetual inventory system had been used? CHART OF ACCOUNTSWyman CompanyGeneral Ledger ASSETS110Cash120Accounts Receivable125Notes Receivable130Inventory131Estimated Returns Inventory140Office Supplies141Store Supplies142Prepaid Insurance180Land192Store Equipment193Accumulated Depreciation-Store Equipment194Office Equipment195Accumulated Depreciation-Office Equipment LIABILITIES210Accounts Payable216Salaries Payable218Sales Tax Payable219Customer Refunds Payable220Unearned Rent221Notes Payable EQUITY310Common Stock311Retained Earnings312Dividends REVENUE410Sales610Rent Revenue EXPENSES510Purchases511Purchases Returns and Allowances512Purchases Discounts513Freight In521Delivery Expense522Advertising Expense524Depreciation Expense-Store Equipment525Depreciation Expense-Office Equipment526Sales Salaries Expense527Office Salaries Expense531Rent Expense533Insurance Expense534Store Supplies Expense535Office Supplies Expense536Credit Card Expense539Miscellaneous Selling Expense540Miscellaneous Administrative Expense710Interest Expense Labels Administrative expenses Cost of goods sold Cost of merchandise purchased December 31, 20Y5 For the Year Ended December 31, 20Y5 Operating expenses Other revenue and expense Selling expenses Amount Descriptions Cost of goods sold before estimated returns Gross profit Increase in estimated returns inventory Income from operations Inventory available for sale Inventory, December 31, 20Y5 Inventory, January 1, 20Y5 Net income Net loss Net purchases Total cost of merchandise purchased Total administrative expenses Total operating expenses Total selling expenses ### Net Income Calculation Using Perpetual Inventory System**Question:**4. What would be the net income if the perpetual inventory system had been used?**Answer:**$132,000.00 *(Indicated as incorrect with a red "X")*---**Explanation:**In this section, students are asked to calculate the net income using the perpetual inventory system. The incorrect answer provided in the example is $132,000.00, which suggests that errors were made either in the calculation process or in the application of the perpetual inventory system principles.**Perpetual Inventory System Overview:**A perpetual inventory system continuously updates inventory records for each purchase and sale. This method provides real-time inventory levels and cost of goods sold (COGS) calculations, allowing for more accurate financial reporting.**Steps for Correct Calculation:**1. **Track Purchases and Sales:** Record every purchase and sale of inventory as they occur.2. **Update Inventory Levels:** Adjust the inventory levels immediately after each transaction.3. **Calculate COGS:** Determine the cost of goods sold based on the updated inventory levels.4. **Revenue and Expenses:** Calculate the total revenue from sales and subtract the COGS and other operating expenses.5. **Determine Net Income:** The resulting figure after subtracting all expenses from total revenue will be the net income.By following these steps meticulously, students can avoid mistakes and ensure accurate net income calculation using the perpetual inventory system. ## Closing Entries for Wyman Company - December 31, 20Y5Below are the closing entries for Wyman Company as of December 31, 20Y5. These entries ensure that all temporary accounts are closed and transferred to the permanent accounts, resulting in updated retained earnings.### Journal Entries| Date | Description | Post. Ref. | Debit | Credit | Assets | Liabilities | Equity ||------------|-----------------------------------------|------------|--------------|-----------------|--------|-------------|--------|| **Dec. 31** | **Closing Entries** | | | | | | || | Inventory | ✓ | $305,000.00 | | ↑ | | || | Sales | ✓ | | $3,280,000.00 | | | ↑ || | Purchase Returns and Allowances | ✓ | | $95,000.00 | | | ↑ || | Purchase Discounts | ✓ | | $37,000.00 | | | ↑ || | Rent Revenue | ✓ | | $7,000.00 | | | ↑ || | Retained Earnings | ✓ | $185,000.00 | | | | ↑ || | Income from operations | ✓ | | $3,542,000.00 | | | ↓ || | Inventory | ✓ | | $257,000.00 | ↓ | | || | Purchases | ✓ | $2,650,000.00| | | | ↓ || | Freight In | ✓ | $48,000.00 | | | | ↓ || | Sales Salaries Expense | ✓ | $300,000.00 | | | | ↓ || | Advertising Expense | ✓ | $45,000.00 | | | | ↓ || | Delivery Expense | ✓ | $9,000.00 | | | | ↓ || | Depreciation Expense -

1. Company W uses the periodic inventory system as it records the accounts for purchases, freight-in…

On December 31, 20Y5, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Cash $13,500 Accounts receivable 72,000 Inventory, January 1, 20Y5 257,000 Estimated returns inventory, January 1, 20Y5 35,000 Office supplies 3,000 Prepaid insurance 4,500 Land 150,000 Store equipment 270,000 Accumulated depreciation-store equipment 55,900 Office equipment 78,500 Accumulated depreciation-office equipment 16,000 Accounts payable 77,800 Salaries payable 3,000 Customer refunds payable 50,000 Unearned rent 8,300 Notes payable 50,000 Common stock 150,000 Retained earnings 365,600 Dividends 25,000 Sales 3,280,000 Purchases 2,650,000 Purchases returns and allowances 93,000 Purchases discounts 37,000 Freight in 48,000 Sales salaries expense 300,000 Advertising expense 45,000 Delivery expense 9,000 Depreciation expense-store equipment 6,000 Miscellaneous selling expense 12,000 Office salaries expense 175,000 Rent expense 28,000 Insurance expense 3,000 Office supplies expense 2,000 Depreciation expense-office equipment 1,500 Miscellaneous administrative expense 3,500 Rent revenue 7,000 Interest expense 2,000 Required: 1. Does Wyman Company use a periodic inventory system or perpetual inventory system? Which account listed would not be used under both inventory systems? 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 20Y5. The inventory as of December 31, 20Y5, was $305,000. The estimated cost of customer returns inventory for December 31, 20Y5, is estimated to increase to $40,000. Be sure to complete the statement heading. Refer to the Instructions and the list of Labels and Amount Descriptions for the exact wording of text entries. Negative amount should be indicated by the minus sign. Colons (:) will fill in where needed. 3. Prepare the closing entries for Wyman Company as of December 31, 20Y5. Refer to the Chart of Accounts for exact wording of account titles. 4. What would be the net income if the perpetual inventory system had been used?

On December 31, 20Y5, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Cash $13,500 Accounts receivable 72,000 Inventory, January 1, 20Y5 257,000 Estimated returns inventory, January 1, 20Y5 35,000 Office supplies 3,000 Prepaid insurance 4,500 Land 150,000 Store equipment 270,000 Accumulated depreciation-store equipment 55,900 Office equipment 78,500 Accumulated depreciation-office equipment 16,000 Accounts payable 77,800 Salaries payable 3,000 Customer refunds payable 50,000 Unearned rent 8,300 Notes payable 50,000 Common stock 150,000 Retained earnings 365,600 Dividends 25,000 Sales 3,280,000 Purchases 2,650,000 Purchases returns and allowances 93,000 Purchases discounts 37,000 Freight in 48,000 Sales salaries expense 300,000 Advertising expense 45,000 Delivery expense 9,000 Depreciation expense-store equipment 6,000 Miscellaneous selling expense 12,000 Office salaries expense 175,000 Rent expense 28,000 Insurance expense 3,000 Office supplies expense 2,000 Depreciation expense-office equipment 1,500 Miscellaneous administrative expense 3,500 Rent revenue 7,000 Interest expense 2,000 Required: 1. Does Wyman Company use a periodic inventory system or perpetual inventory system? Which account listed would not be used under both inventory systems? 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 20Y5. The inventory as of December 31, 20Y5, was $305,000. The estimated cost of customer returns inventory for December 31, 20Y5, is estimated to increase to $40,000. Be sure to complete the statement heading. Refer to the Instructions and the list of Labels and Amount Descriptions for the exact wording of text entries. Negative amount should be indicated by the minus sign. Colons (:) will fill in where needed. 3. Prepare the closing entries for Wyman Company as of December 31, 20Y5. Refer to the Chart of Accounts for exact wording of account titles. 4. What would be the net income if the perpetual inventory system had been used?

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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I am missing information for the closing entries and final question....still stumped after hours. I have attached the images. Here is the problem with instructions.

On December 31, 20Y5, the balances of the accounts appearing in the ledger of Wyman Company are as follows:

Cash	$13,500
Accounts receivable	72,000
Inventory, January 1, 20Y5	257,000
Estimated returns inventory, January 1, 20Y5	35,000
Office supplies	3,000
Prepaid insurance	4,500
Land	150,000
Store equipment	270,000
Accumulated depreciation-store equipment	55,900
Office equipment	78,500
Accumulated depreciation-office equipment	16,000
Accounts payable	77,800
Salaries payable	3,000
Customer refunds payable	50,000
Unearned rent	8,300
Notes payable	50,000
Common stock	150,000
Retained earnings	365,600
Dividends	25,000
Sales	3,280,000
Purchases	2,650,000
Purchases returns and allowances	93,000
Purchases discounts	37,000
Freight in	48,000
Sales salaries expense	300,000
Advertising expense	45,000
Delivery expense	9,000
Depreciation expense-store equipment	6,000
Miscellaneous selling expense	12,000
Office salaries expense	175,000
Rent expense	28,000
Insurance expense	3,000
Office supplies expense	2,000
Depreciation expense-office equipment	1,500
Miscellaneous administrative expense	3,500
Rent revenue	7,000
Interest expense	2,000

	Required:
1.	Does Wyman Company use a periodic inventory system or perpetual inventory system? Which account listed would not be used under both inventory systems?
2.	Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 20Y5. The inventory as of December 31, 20Y5, was $305,000. The estimated cost of customer returns inventory for December 31, 20Y5, is estimated to increase to $40,000. Be sure to complete the statement heading. Refer to the Instructions and the list of Labels and Amount Descriptions for the exact wording of text entries. Negative amount should be indicated by the minus sign. Colons (:) will fill in where needed.
3.	Prepare the closing entries for Wyman Company as of December 31, 20Y5. Refer to the Chart of Accounts for exact wording of account titles.
4.	What would be the net income if the perpetual inventory system had been used?

CHART OF ACCOUNTS

Wyman Company

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Inventory
131	Estimated Returns Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
218	Sales Tax Payable
219	Customer Refunds Payable
220	Unearned Rent
221	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends

	REVENUE
410	Sales
610	Rent Revenue

	EXPENSES
510	Purchases
511	Purchases Returns and Allowances
512	Purchases Discounts
513	Freight In
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
526	Sales Salaries Expense
527	Office Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Selling Expense
540	Miscellaneous Administrative Expense
710	Interest Expense

Labels
Administrative expenses
Cost of goods sold
Cost of merchandise purchased
December 31, 20Y5
For the Year Ended December 31, 20Y5
Operating expenses
Other revenue and expense
Selling expenses
Amount Descriptions
Cost of goods sold before estimated returns
Gross profit
Increase in estimated returns inventory
Income from operations
Inventory available for sale
Inventory, December 31, 20Y5
Inventory, January 1, 20Y5
Net income
Net loss
Net purchases
Total cost of merchandise purchased
Total administrative expenses
Total operating expenses
Total selling expenses

### Net Income Calculation Using Perpetual Inventory System

**Question:**
4. What would be the net income if the perpetual inventory system had been used?

**Answer:**
$132,000.00

*(Indicated as incorrect with a red "X")*

---

**Explanation:**
In this section, students are asked to calculate the net income using the perpetual inventory system. The incorrect answer provided in the example is $132,000.00, which suggests that errors were made either in the calculation process or in the application of the perpetual inventory system principles.

**Perpetual Inventory System Overview:**
A perpetual inventory system continuously updates inventory records for each purchase and sale. This method provides real-time inventory levels and cost of goods sold (COGS) calculations, allowing for more accurate financial reporting.

**Steps for Correct Calculation:**
1. **Track Purchases and Sales:** Record every purchase and sale of inventory as they occur.
2. **Update Inventory Levels:** Adjust the inventory levels immediately after each transaction.
3. **Calculate COGS:** Determine the cost of goods sold based on the updated inventory levels.
4. **Revenue and Expenses:** Calculate the total revenue from sales and subtract the COGS and other operating expenses.
5. **Determine Net Income:** The resulting figure after subtracting all expenses from total revenue will be the net income.

By following these steps meticulously, students can avoid mistakes and ensure accurate net income calculation using the perpetual inventory system.

## Closing Entries for Wyman Company - December 31, 20Y5

Below are the closing entries for Wyman Company as of December 31, 20Y5. These entries ensure that all temporary accounts are closed and transferred to the permanent accounts, resulting in updated retained earnings.

### Journal Entries

| Date | Description | Post. Ref. | Debit | Credit | Assets | Liabilities | Equity |
|------------|-----------------------------------------|------------|--------------|-----------------|--------|-------------|--------|
| **Dec. 31** | **Closing Entries** | | | | | | |
| | Inventory | ✓ | $305,000.00 | | ↑ | | |
| | Sales | ✓ | | $3,280,000.00 | | | ↑ |
| | Purchase Returns and Allowances | ✓ | | $95,000.00 | | | ↑ |
| | Purchase Discounts | ✓ | | $37,000.00 | | | ↑ |
| | Rent Revenue | ✓ | | $7,000.00 | | | ↑ |
| | Retained Earnings | ✓ | $185,000.00 | | | | ↑ |
| | Income from operations | ✓ | | $3,542,000.00 | | | ↓ |
| | Inventory | ✓ | | $257,000.00 | ↓ | | |
| | Purchases | ✓ | $2,650,000.00| | | | ↓ |
| | Freight In | ✓ | $48,000.00 | | | | ↓ |
| | Sales Salaries Expense | ✓ | $300,000.00 | | | | ↓ |
| | Advertising Expense | ✓ | $45,000.00 | | | | ↓ |
| | Delivery Expense | ✓ | $9,000.00 | | | | ↓ |
| | Depreciation Expense -

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