Question

Splish Brothers Inc. had the following account balances at year-end: Cost of Goods Sold $63,840; Inventory...

Splish Brothers Inc. had the following account balances at year-end: Cost of Goods Sold $63,840; Inventory $14,610; Operating Expenses $30,650; Sales Revenue $121,130; Sales Discounts $1,130; and Sales Returns and Allowances $1,850. A physical count of inventory determines that merchandise inventory on hand is $13,080.

1.Prepare the adjusting entry necessary as a result of the physical count. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Already completed

2.Prepare closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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Answer #1
1
Account Titles and Explanation Debit Credit
Cost of Goods Sold 1530 =14610-13080
        Inventory 1530
2
Account Titles and Explanation Debit Credit
Sales Revenue 121130
      Income Summary 121130
Income Summary 99000
       Cost of Goods Sold 65370 =63840+1530
       Operating Expenses 30650
       Sales Discounts 1130
       Sales Returns and Allowance 1850
Income Summary 22130 =121130-99000
      Retained Earnings/Owner's Capital 22130
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