Presented below is information related to Sarasota Co. for the month of January 2020. Ending inventory per Insurance expense $11,100 perpetual records $25,510 Rent expense 24,490 Ending inventory actually Salaries and wages expense 58,620 on hand 24,810 Sales discounts 10,360 Cost of goods sold 215,990 Sales returns and allowances 15,660 Freight-out 7,620 Sales revenue 419,490 Prepare the necessary adjusting entry for inventory. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the necessary closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To close accounts with credit balances) (To close accounts with debit balances) (To close net income / (loss))

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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Presented below is information related to Sarasota Co. for the month of January 2020.

Ending inventory per		Insurance expense	$11,100
perpetual records	$25,510	Rent expense	24,490
Ending inventory actually		Salaries and wages expense	58,620
on hand	24,810	Sales discounts	10,360
Cost of goods sold	215,990	Sales returns and allowances	15,660
Freight-out	7,620	Sales revenue	419,490

Prepare the necessary adjusting entry for inventory. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

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

Account Titles and Explanation	Debit	Credit


(To close accounts with credit balances)








(To close accounts with debit balances)


(To close net income / (loss))

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