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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. 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.
Expert Solution
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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