United Rug Company is a small rug retailer owned and operated by Pat Kirwan. After the accounts have been adjusted on December 31, the following selected accountbalances were taken from the ledger:Advertising Expense$33,200Depreciation Expense13,100Freight In7,000Merchandise Inventory, December 1209,200Merchandise Inventory, December 31251,500Miscellaneous Expense24,100Purchases628,800Purchases Discounts10,100Purchases Returns and Allowances6,000Pat Kirwan, Drawing50,300Salaries Expense146,900Sales1,006,000The estimated cost of merchandise returns from December sales is $21,100.Journalize the closing entries on December 31 in the order as presented in the chapter.For a compound transaction, if an amount box does not require an entry, leave it blank. Merchandise Inventory vDec. 31Estimated Returns Inventory vSalesPurchases Discounts vPurchases Returns and AllowancesMerchandise Inventory vPurchases vFreight In vSalaries Expense vAdvertising Expense vDepreciation Expense vMiscellaneous Expense vPat Kirwan, Capital vDec. 31 Pat Kirwan, Capital vPat Kirwan, Drawing v

Closing entries: The journal entries prepared to close the temporary accounts to Retained Earnings…

Answered: United Rug Company is a small rug…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 1COMP: Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account...

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United Rug Company is a small rug retailer owned and operated by Pat Kirwan. After the accounts have been adjusted on December 31, the following selected account balances were taken from the ledger: Advertising Expense. Depreciation Expense Freight In..... Merchandise Inventory, January 1 36,000 13,000 17,000 375,000 Merchandise Inventory, December 31... 460,000 Miscellaneous Expense 9,000 Purchases... 1,760,000 Purchases Discounts. 35,000 Purchases Returns and Allowances 45,000 Pat Kirwan, Drawing. 65,000 Salaries Expense 375,000 Sales 2,220,000 The estimated cost of merchandise returns from December sales is $20,000. Journalize the closing entries on December 31.
United Rug Company is a small rug retailer owned and operated by Pat Kirwan. After the accounts have been adjusted on December 31, the following selected account balances were taken from the ledger: Advertising Expense $ 33,940 Depreciation Expense 14,560 Freight In 20,410 Merchandise Inventory, January 1 371,500 Merchandise Inventory, December 31 462,050 Miscellaneous Expense 9,000 Purchases 1,764,000 Purchases Discounts 39,590 Purchases Returns and Allowances 45,080 Pat Kirwan, Drawing 66,960 Salaries Expense 370,350 Sales 2,216,000 The estimated cost of merchandise returns from December sales is $23,330. Required: Journalize the closing entries on December 31. Refer to the Chart of Accounts for exact wording of account titles.
Journalize entries for the following related transactions of Manville Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles. Mar. 1 Purchased $48,400 of merchandise from Wright Co. on account, terms 2/10, n/30. 9 Paid the amount owed on the invoice within the discount period. 11 Discovered that $7,800 of the merchandise purchased on Mar. 1 was defective and returned items, receiving credit. 18 Purchased $6,000 of merchandise from Wright Co. on account, terms n/30. 20 Received a refund from Wright Co. for return on Mar. 11 less the purchase on Mar. 18. CHART OF ACCOUNTS Manville Heating & Air Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise 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…
Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system). Merchandise inventory . $ 37,800 Sales returns and allowances $ 6,500 T. Nix, Capital 115,300 Cost of goods sold 105,000 T. Nix, Withdrawals . 7,000 Depreciation expense 10,300 Sales 160,200 Salaries expense 32,500 Sales discounts . 4,700 Miscellaneous expenses 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $35,900. Prepare the entry to record any inventory shrinkage.
Valley Company's adjusted account balances from its general ledger on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Adjusted Account Balances Debit Credit Merchandise inventory (ending) $ 34,000 Other (non-inventory) assets 136,000 Total liabilities $ 39,270 Common stock 67,851 Retained earnings 45, 768 Dividends 8,000 Sales 232, 560 Sales discounts 3,558 Sales returns and allowances 15,349 Cost of goods sold 90, 401 Sales salaries expense 31,861 Rent expense-Selling space 10, 930 Store supplies expense 2, 791 Advertising expense 19,768 Office salaries expense 29,070 Rent expense-Office space 2,791 Office supplies expense 930 Totals $385, 449 $385, 449 Beginning merchandise inventory was $27,438. Supplementary records of merchandising activities for the year ended…
Crane Company has the following merchandise account balances at its September 30 year end: Cost of goods sold $140,000, Sales $273,500, Delivery expense $2,100, Sales discounts $950, Merchandise inventory $22,000, Sales returns and allowances $3,200, Salaries expense $41,000, Supplies $2,700. Prepare the entries to close the appropriate accounts to the Income Summary account.
On December 22, Travis Company purchased merchandise on account from a supplier for $13,200, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period on December 31. Required: Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSTravis CompanyGeneral Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales EXPENSES 510 Cost of…
Gomez Company sells electrical supplies on a wholesale basis. The balances of the accounts as of April 1 have been recorded in the general ledger in your working papers and CengageNow. The following transactions took place during April of this year: Apr. 1 Sold merchandise on account to Myers Company, invoice no. 761, $570.40. Apr. 5 Sold merchandise on account to L.R. Foster, invoice no. 762, $486.10. Apr. 6 Issued credit memo no. 50 to Myers Company for merchandise returned, $40.70. Apr. 10 Sold merchandise on account to Diaz Hardware, invoice no. 763, $293,35. Apr. 14 Sold merchandise on account to Brooks and Bennett, invoice no. 764, $640.16. Apr. 17 Sold merchandise on account to Powell and Reyes, invoice no. 765, $582.12. Apr. 21 Issued credit memo no. 51 to Brooks and Bennett for merchandise returned, $68.44. Apr. 24 Sold merchandise on account to Ortiz Company, invoice no. 766, $652.87. Apr. 26 Sold merchandise on account to Diaz Hardware, invoice no. 767, $832.19. Apr. 30…
The following account titles and balances were taken from the adjusted trial balance of King Company for Year 2. The company uses the periodic inventory system. Account Title Balance Sales returns and allowances $ 9,100 Miscellaneous expense 910 Transportation-out 11,350 Sales 331,000 Advertising expense 12,300 Salaries expense 58,500 Transportation-in 6,750 Purchases 161,000 Interest expense 6,100 Merchandise inventory, January 1 19,100 Rent expense 20,750 Merchandise inventory, December 31 21,200 Purchase returns and allowances 3,250 Loss on sale of land 5,100 Utilities expense 11,500 Requireda. Prepare a schedule to determine the amount of cost of goods sold.b. Prepare a multistep income statement.c. Prepare a single-step income statement. I will appreciate if you answer this question by filling out the following table.I filled them out but I'm not sure with the answers I have just pui in.Thanks in advance
On December 22, Travis Company purchased merchandise on account from a supplier for $7,500, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period on December 31. Required: Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles.
Riverbed Company had the following account balances at year-end: Cost of Goods Sold $62,380, Inventory $14,410, Utilities Expense $32,500, Sales Revenue $126,790, Sales Discounts $1,170, and Sales Returns and Allowances $1,700. A physical count of inventory determines that merchandise inventory on hand is $12,360. They use the perpetual inventory system. (a) Prepare the adjusting entry necessary as a result of the physical count. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount (b) Prepare closing entries. (List all debit entries before credit entries. Credit account titles are automatically…
The Income Statement section of the Johnson Company worksheet for the year ended December 31, 20X1, has $180,000 recorded in the Debit column and $204,244 in the Credit column on the line for the Income Summary account. What were the beginning and ending balances for Merchandise Inventory? Beginning merchandise inventory Ending merchandise inventory

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