Adjusting - Merchandising Business
Adjusting - Merchandising Business
Adjusting - Merchandising Business
Problem 1
Cash 31,000.00
Accounts Receivable 83,000.00
Merchandise Inventory 627,000.00
Prepaid Insurance 54,000.00
Office Supplies 68,000.00
Office Equipment 370,000.00
Accumulated Depreciation 50,000.00
Accounts Payable 58,000.00
Bala, Capital 517,000.00
Bala, Withdrawals 87,000.00
Sales 2,675,000.00
Sales Returns and Allowances 26,000.00
Sales Discounts 23,000.00
Purchases 1,512,000.00
Purchase Returns and Allowances 14,000.00
Purchase Discounts 19,000.00
Transportation In 38,000.00
Salaries Expense 327,000.00
Advertising Expense 61,000.00
Rent Expense 26,000.00
TOTAL 3,333,000.00 3,333,000.00
Additional information:
Required:
Prepare
1. Adjusting entries
2. Adjusted trial balance
3. Income statement
4. Statement of changes in equity
5. Balance sheet
6. Closing entries
Problem 2
The ledger accounts of Erlinda Company for the year ended December 31, 2019 are as follows:
Additional information:
Required:
Prepare
1. Adjusting entries
2. Worksheet (can be done in yellow pad, bond paper or excel if you don’t have a columnar
worksheet)
3. Financial statements
4. Closing entries