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Homework answers / question archive / How to post a correct journal entry and multistep income sheet?Descriptions of items that require adjusting entries on January 31, 2019, follow

How to post a correct journal entry and multistep income sheet?Descriptions of items that require adjusting entries on January 31, 2019, follow

Accounting

How to post a correct journal entry and multistep income sheet?Descriptions of items that require adjusting entries on January 31, 2019, follow. a. Store supplies still available at fiscal year-end amount to $2,950. b. Expired insurance, an administrative expense, for the fiscal year is $1,880. c. Depreciation expense on store equipment, a selling expense, is $6,300 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,560 of inventory is still available at fiscal year-endHow do I prepare a General Journal? Omit the multistep income statement.

 

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The data given is for adjusting journal entries.
The amount for a & d could not be calculated since these require unadjusted balances, i.e. Balances of Supplies and Inventory as per Unadjusted trial balance.

Amounts can be calculated as
Supplies Expense = Unadjusted Balance of Store Supplies - $2950
Cost of Goods Sold = Unadjusted balance of Inventory - $11560 i.e. to record inventory shrinkage

  Account Titles Debit Credit
1 Supplies Expense    
         Store Supplies    
       
2 Insurance expense $               1,880  
         Prepaid Insurance   $               1,880
3      
  Depreciation Expense $               6,300  
         Accumulated Depreciation   $               6,300
       
4 Cost of Goods Sold    
          Inventory  

 

 

 

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