1. Prepare adjusting entries for inventory2. Provide closing entries, balance sheet & income statement The trial balance of Lucky Trading shows the adjusted balances at the end of its fiscalyear, March 31, 2021:DebitCreditCash317,810Accounts Receivable142,050Merchandise InventoryStore SuppliesPrepaid RentStore EquipmentAccumulated Depreciation - Store Equipment102,66022,400125,000186,10050,120Accounts Payable54,900Short-term LoansAccrued SalariesUnearned IncomeIncome Tax Payable142,99033,50051,30026,000Co, Capital500,000Accumulated Depreciation - Store Equipment50,120Accounts Payable54,900Short-term Loans142,990Accrued SalariesUnearned IncomeIncome Tax PayableСо, СаptalCo, Drawing33,50051,30026,000500,00040,000Sales415,740Sales Discounts7,600Sales Returns & Allowances3,000Purchases211,650Purchase Discounts10,000Purchase Returns & Allowances5,200 Freight-in12,000Salaries Expense67,400Store Supplies Expense3,940Rent Expense25,000Freight-out3,200Depreciation Expense - Store Equipment17,440Interest Expense2,5001,289,7501,289,750REQUIRED:1. Assuming that during physical inventory count, it was found out that the remainingmerchandise inventories amounted to Php 97,000,using the periodic inventory system.2. Journalize the closing entries.3. Prepare a statement of changes in equity.4. What will be the difference if the worksheet is prepared using the perpetualinventory system?preparethe worksheet

Periodic inventory & Perpetual inventory system Inventory account is not updated for each…

The trial balance of Lucky Trading shows the adjusted balances at the end of its fiscal year, March 31, 2021: Debit 317,810 Credit Cash Accounts Receivable 142,050 Merchandise Inventory Store Supplies Prepaid Rent 102,660 22,400 125,000 Store Equipment Accumulated Depreciation - Store Equipment |Accounts Payable Short-term Loans Accrued Salaries Unearned Income Income Tax Payable Co, Capital Accumulated Dopreciation - Store Equipment 186,100 50,120 54,900 142,990 33,500 51,300 26,000 500,000 50,120 Accounts Payable 54,900 Short-term Loans 142,990 Accrued Salaries 33,500 Unearned Income 51,300 Income Tax Payable 26,000 Со, Сарtal Co, Drawing 500,000 40,000 Sales 415,740 Sales Discounts 7,600 Sales Returns & Allowances 3,000 Purchases 211,650 Purchase Discounts 10,000 Purchase Returns & Allowances 5,200

The trial balance of Lucky Trading shows the adjusted balances at the end of its fiscal year, March 31, 2021: Debit 317,810 Credit Cash Accounts Receivable 142,050 Merchandise Inventory Store Supplies Prepaid Rent 102,660 22,400 125,000 Store Equipment Accumulated Depreciation - Store Equipment |Accounts Payable Short-term Loans Accrued Salaries Unearned Income Income Tax Payable Co, Capital Accumulated Dopreciation - Store Equipment 186,100 50,120 54,900 142,990 33,500 51,300 26,000 500,000 50,120 Accounts Payable 54,900 Short-term Loans 142,990 Accrued Salaries 33,500 Unearned Income 51,300 Income Tax Payable 26,000 Со, Сарtal Co, Drawing 500,000 40,000 Sales 415,740 Sales Discounts 7,600 Sales Returns & Allowances 3,000 Purchases 211,650 Purchase Discounts 10,000 Purchase Returns & Allowances 5,200

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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Listed below are selected examples of transactions related to the purchase and sale of inventory from the perspective of the seller or the buyer as indicated. Assume a perpetual inventory system is in use. 1. N 2. 3. 4. 5. 6. 7. 8. 9. 10. 3. For each of the above transactions, indicate (a) the basic type (asset, liability, revenue, or expense) of each account to be debited and credited; (b) the specific name(s) of the account(s) to debit and credit (for example, Inventory); and (c) whether each account is increased (+) or decreased (-) and by what amount. The first one has been done for you as an example. (Enter specific debited account items in alphabetical order. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) 4. (a) Item Basic Type of Account 1. Asset 2. 5. 6. 7. 8. Buyer: Purchase of $2,940 of inventory for cash. Buyer: Return of $630 of inventory to seller for credit on account. Buyer: Purchase of $3,360 of inventory on…
Describe the backflushing or post-deduct system of inventory recordkeeping
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