Post adjusting and closing entries for the attached journal.
I have added the actual problem from the text to show what is is i have to do (see accounting I 2012 attchment)
I have also attached the solutions for the problem which i got from the book’s solutions manual….which should help as cross reference to see if your calculations / figures are correct.
Thank you
Journal
Date Accounts and Explanations
Post
Ref.
Debit Credit
2012 Adjusting Entries
Jan.
a) 31 Selling Expense
$
700
General Expense
$
700
Supplies $ 1,400
b) 31 Selling Expense
$
950
General Expense
$
2,850
Accumulated Dep. –
Building
$ 3,800
b) 31 Selling Expense
$
1,150
General Expense
$
3,450
Accumulated Dep. –
Furniture
$ 4,600
c) 31 Unearned Sales Revenue
$
4,420
Sales Revenue $ 4,420
d) 31 General Expense
$
1,100
Salary Payable $ 1,100
e) 31 Cost of Goods Sold
$
1,540
Inventory $ 1,540
Post the adjusting and closing entries
Journal
Date Accounts and Explanations
Post
Ref.
Debit Credit
2012 Closing Entries
Jan.
31 Sales Revenue
$
184,350
Sales Discounts $ 7,100
Sales Returns and
Allowances
$ 8,080
Income Summary $ 169,170
31 Income Summary
$
144,800
Cost of Goods Sold $ 103,440
Selling Expenses $ 24,180
General Expense $ 17,180
31 Income Summary
$
24,370
Tarsus, Capital $ 24,370
31 Tarsus, Capital
$
9,100
Tarsus, Drawing $ 9,100
Completing a Merchandiser’s Accounting Cycle
The end-of-month trial balance of
St. Paul Technology
at
January 31, 2012
, follows:
Trial Balance
Account
Debit
Credit
Cash
$
16,260
Accounts Receivable
$ 18,930
Inventory
$ 65,000
Supplies
$ 2,580
Building
$ 188,090
Accumulated Depreciation-Building
$ 35,300
Furniture
$ 44,800
Accumulated Depreciation- Furniture
$ 5,500
Accounts Payable
$ 27,900
Salary Payable
Unearned sales revenue
$ 6,480
Notes Payable, Long-Term
$ 85,000
Tarsus, Capital
$ 152,190
Tarsus, Drawing
$ 9,100
Sales Revenue
$ 179,930
Sales Discounts
$ 7,100
Sales returns and allowances
$ 8,080
Cost of Goods Sold
$ 101,900
Selling Expense
$ 21,380
General Expense
$ 9,080
Total
$ 492,300
$ 492,300
Additional data at January 31, 2012:
A: Supplies consumed during the month $1,400. Half is selling expense, and the other half is general expense.
B: Depreciation for the month: Building, $3,800; furniture, $4,600. One-fourth of depreciation is selling expense, and three-fourths is general expense.
C: Unearned sales revenue earned during January, $4,420.
D: Accrued salaries, a general expense $1,100.
E: Inventory on hand, $63,460. St. Paul uses the perpetual inventory system.
Requirements:
1) Using four column accounts, open the accounts listed on the trial balance, inserting their unadjusted balances. Date the balances of the following accounts January 1: Supplies; Building; Accumulated depreciation–building; Furniture; Accumulated depreciation–furniture; Unearned sales revenue; Tarsus, Capital. Date the balance of Tarsus, Drawing, January 31. Also open the Income Summary account.
2) Enter the trial balance on an accounting work sheet, complete the and complete the work sheet for the month ended January 31, 2012. St. Paul Technology groups all operating expenses under two accounts, Selling Expense and General Expense. Leave two blank lines under Selling expense and three blank lines under General Expense.
3) Prepare the company’s multi-step income statement and statement of owner’s equity for the month ended January 31, 2012. Also prepare the balance sheet at that date in report form.
4) Journalize the adjusting and closing entries at January 31.
5) Post the adjusting and closing entries.
Comprehensive Problem, Chapters 1-5
*Solutions for Requirements 1 and 5 are omitted in this problem
Chapter 5 Merchandising Operations
Req. 2 Comprehensive Problem Chs 1-5
St. Paul Technology
Worksheet
For the
Month Ended
January 31, 2012
ADJUSTED
ACCOUNT TITLE
TRIAL BALANCE ADJUSTMENTS TRIAL BALANCE INCOME STATEMENT BALANCE SHEET
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
Cash $16,260 $16,260 $16,260
Accounts receivable 18,930 18,930 18,930
Inventory 65,000 (e) $1,540 6,3460 63,460
Supplies 2,580 (a) 1,400 1,180 1,180
Building 188,090 188,090 188,090
Accum. Depre. – building
$35,300 (b) 3,800 $39,100 $39,100
Furniture 44,800 44,800 44,800
Accum. Depre. – furniture
5,500 (b) 4,600 10,100 10,100
Accounts payable 27,900 27,900 27,900
Salary payable 0 (d) 1,100 1,100 1,100
Unearned sales revenue 6,480 (c) $4,420 2,060 2,060
Note payable, long-term 85,000 85,000 85,000
Tarsus, capital 152,190 152,190 152,190
Tarsus, drawing 9,100 9,100 9,100
Sales revenue 179,930 (c) 4,420 184,350 $184,350
Sales discounts 7,100 7,100 7,100
Sales returns and allowances 8,080 8,080 8,080
Cost of goods sold 101,900 (e) 1,540 103,440 103,440
Selling expense 21,380 (a) 700 24,180 24,180
(b) 950*
(b) 1,150*
General expense 9,080 (a) 700 17,180 17,180
(b) 2,850*
(b) 3,450*
(d) 1,100
$492,300 $492,300 $16,860 $16,860 $501,800 $501,800 $159,980 $184,350 $341,820 $317,450
Net income 24,370 24,370
$184,350 $184,350 $341,820 $341,820
*Students may combine the b-1 and b-2 amounts as $2,100 Selling expense and $6,300 General expense.
Comprehensive Problem, Chapters 1-5
*Solutions for Requirements 1 and 5 are omitted in this problem
Chapter 5 Merchandising Operations
(continued) Comprehensive Problem Chs 1-5
Req. 3 (financial statements)
St. Paul Technology
Income Statement
Month Ended January 31, 2012
Revenue:
Sales revenue $184,350
Less: Sales returns and
allowances
$88,080
Sales discounts 7,100 15,180
Net sales revenue $169,170
Cost of goods sold 103,440
Gross profit $65,730
Operating expenses:
Selling expense $24,180
General expense 17,180 41,360
Net income $24,370
St. James Technology
Statement of Owner’s Equity
Month Ended January 31, 2012
Tarsus, capital, January 1, 2012 $152,190
Net income 24,370
176,560
Drawing (9,100)
Tarsus, capital, January 31, 2012 $167,460
Comprehensive Problem, Chapters 1-5
*Solutions for Requirements 1 and 5 are omitted in this problem
Chapter 5 Merchandising Operations
(continued) Comprehensive Problem Chs 1-5
Req. 3 (financial statements)
St. Paul Technology
Balance Sheet
January 31, 2012
ASSETS
Current assets:
Cash $ 16,260
Accounts receivable 18,930
Inventory 63,460
Supplies 1,180
Total current assets 99,830
Plant assets:
Building $188,090
Accumulated depreciation—
building
(39,100) 148,990
Furniture $44,800
Accumulated depreciation—
furniture
(10,100) 34,700
Total assets $283,520
LIABILITIES
Current liabilities:
Accounts payable $27,900
Salary payable 1,100
Unearned sales revenue 2,060
Total current liabilities 31,060
Long-term liabilities:
Note payable, long-term 85,000
Total liabilities 116,060
OWNER’S EQUITY
Tarsus, capital 167,460
Total liabilities and owner’s equity $283,520
Comprehensive Problem, Chapters 1-5
*Solutions for Requirements 1 and 5 are omitted in this problem
Chapter 5 Merchandising Operations
(continued) Comprehensive Problem Chs 1-5
Req. 4 (adjusting and closing entries)
Journal Entry
DATE ACCOUNTS AND EXPLANATIONS
POST.
REF. DEBIT CREDIT
Adjusting Entries
2012
a. Jan 31 Selling expense 700
General expense 700
Supplies 1,400
b. 31 Selling expense 950
General expense 2,850
Accumulated
depreciation—
building 3,800
b. 31 Selling expense 1,150
General expense 3,450
Accumulated
depreciation—
furniture 4,600
c. 31 Unearned sales revenue 4,420
Sales revenue 4,420
d. 31 General expense 1,100
Salary payable 1,100
e. 31 Cost of goods sold 1,540
Inventory 1,540
Comprehensive Problem, Chapters 1-5
*Solutions for Requirements 1 and 5 are omitted in this problem
Chapter 5 Merchandising Operations
(continued) Comprehensive Problem Chs 1-5
Req. 4 (adjusting and closing entries)
Journal Entry
DATE ACCOUNTS AND EXPLANATIONS
POST.
REF.
DEBIT CREDIT
Closing Entries
Jan 31 Sales revenue 184,350
Sales discounts 7,100
Sales returns and
allowances
8,080
Income summary 169,170
31 Income summary 144,800
Cost of goods sold 103,440
Selling expense 24,180
General expense 17,180
31 Income summary
($169,170 − $144,800) 24,370
Tarsus, capital 24,370
31 Tarsus, capital 9,100
Tarsus, drawing 9,100
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