prepare the adjusted entry required to update inventory and related acounts december 31. update the affected accounts

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Ayayai Athletic Wear Inc.'s adjusted trial balance amounts (with the exclusion of the adjusting entry to update Inventory and Cost of
Goods Sold accounts) appear in alphabetical order as follows on December 31, 2024, the end of its fiscal year:
Accounts payable
Accounts receivable
Accumulated depreciation-buildings
Accumulated depreciation-equipment
Administrative expenses
Buildings
Cash
Common shares
Deferred revenue
Dividends declared
Equipment
Freight in
Income tax expense
Interest expense
Additional information:
1.
2.
3.
$147,900
79,560
93,240 Mortgage payable
Prepaid insurance
Property tax payable
Purchases discounts
Purchase returns and allowances
Purchases
4.
77,220
325,620
342,000
30,600
94,500
14,940
Refund liability
14,400
Retained earnings
198,000 Salaries payable
Sales
Selling expenses
10,080
28,800
Inventory, Jan. 1
Land
18,720
$72,900
135,000
225,000
4,320
8,640
40,500
11,520
722,880
7,440
123,480
Ayayai Athletic Wear uses a periodic inventory system. Returned inventory is not saleable.
A physical inventory count determined that Inventory on December 31, 2024, was $130,680.
Of the mortgage payable, $22,500 is due in the next year.
Common shares were issued during the year for $45,000.
prepare the adjusted entry required to update inventory and related acounts december 31. update the affected accounts
6,300
1,146,600
14,400
Transcribed Image Text:Ayayai Athletic Wear Inc.'s adjusted trial balance amounts (with the exclusion of the adjusting entry to update Inventory and Cost of Goods Sold accounts) appear in alphabetical order as follows on December 31, 2024, the end of its fiscal year: Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Administrative expenses Buildings Cash Common shares Deferred revenue Dividends declared Equipment Freight in Income tax expense Interest expense Additional information: 1. 2. 3. $147,900 79,560 93,240 Mortgage payable Prepaid insurance Property tax payable Purchases discounts Purchase returns and allowances Purchases 4. 77,220 325,620 342,000 30,600 94,500 14,940 Refund liability 14,400 Retained earnings 198,000 Salaries payable Sales Selling expenses 10,080 28,800 Inventory, Jan. 1 Land 18,720 $72,900 135,000 225,000 4,320 8,640 40,500 11,520 722,880 7,440 123,480 Ayayai Athletic Wear uses a periodic inventory system. Returned inventory is not saleable. A physical inventory count determined that Inventory on December 31, 2024, was $130,680. Of the mortgage payable, $22,500 is due in the next year. Common shares were issued during the year for $45,000. prepare the adjusted entry required to update inventory and related acounts december 31. update the affected accounts 6,300 1,146,600 14,400
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