Adjustment for Merchandise Inventory Using T Accounts: Periodic Inventory System Ibby Smith owns and operates Ibby’s Ice Cream Cones. Her beginning inventory as of January 1, 20--, was $44,900, and her ending inventory as of December 31, 20--, was $56,100. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory.   Use the labels shown. (a) Remove the beginning balance in Merchandise Inventory. (b) Add the new balance in Merchandise Inventory.   Merchandise Inventory (Beginning Inventory) 44,900 b ______     a ______ Income Summary a ______ b ______

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Adjustment for Merchandise Inventory Using T Accounts: Periodic Inventory System

Ibby Smith owns and operates Ibby’s Ice Cream Cones. Her beginning inventory as of January 1, 20--, was $44,900, and her ending inventory as of December 31, 20--, was $56,100. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory.

 

Use the labels shown.

(a) Remove the beginning balance in Merchandise Inventory.
(b) Add the new balance in Merchandise Inventory.

 

Merchandise Inventory
(Beginning Inventory) 44,900 b ______
    a ______



Income Summary
a ______ b ______
 
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