Closing Entries: The accounting entries which are made at the end of an accounting period for transfer of balances of temporary accounts to permanent accounts. These entries are generally made in manual accounting system. Rules of Journal Entry : To increase the balance of account one needs to debit assets, expenses, losses and credit all the liabilities, revenues and gains including capital. To decrease the balance of account credit all assets, expenses, losses and debit all liabilities, revenues and gains including capital. Perpetual Inventory System: The inventory system in which the inventory accounts are updated on each purchase or sale in inventory. Quantities of inventory are updated on continuous basis. This can be done by integrating the inventory system to order entry and to the retail sale point of system. 1. To prepare: Closing entries in the books of Company C.

Question

Want to see the full answer?

Answer 1

Question

Chapter 4, Problem 4PSB

To determine

Closing Entries:

The accounting entries which are made at the end of an accounting period for transfer of balances of temporary accounts to permanent accounts. These entries are generally made in manual accounting system.

Rules of Journal Entry:

To increase the balance of account one needs to debit assets, expenses, losses and credit all the liabilities, revenues and gains including capital. To decrease the balance of account credit all assets, expenses, losses and debit all liabilities, revenues and gains including capital.

Perpetual Inventory System:

The inventory system in which the inventory accounts are updated on each purchase or sale in inventory. Quantities of inventory are updated on continuous basis. This can be done by integrating the inventory system to order entry and to the retail sale point of system.

1.

To prepare: Closing entries in the books of Company C.

2.

To determine

To compute: Ratio of sales returns by gross sales.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Felicity Systems has net income of $275,000, net sales of $1,950,000, and average total assets of $1,250,000. What is its return on total assets? Help

Equivalent Units of Production The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Balance Date Item Debit Credit Debit Credit August 1 Bal., 6,600 units, 2/5 completed 13,464 31 Direct materials, 118,800 units 201,960 215,424 31 Direct labor 31 Factory overhead 54,540 269,964 30,678 300,642 31 Goods finished, 120,300 units 289,116 11,526 31 Bal., ? units, 4/5 completed 11,526 a. Determine the number of units in work in process inventory at August 31. units b. Determine the equivalent units of production for direct materials and conversion costs in August. If an amount is zero, enter in "0". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For August Line Item Description Whole Units Equivalent Units Equivalent Direct Materials Units Conversion Inventory in process, August 1…

I am searching for the correct answer to this general accounting problem with proper accounting rules.