Question

The Unadjusted Trial Balance has been prepared (provided below and also in ThreeBrothers worksheet.xlsx), showing only those accounts with a non-zero balance. You have gathered the following information that will be helpful in preparing any necessary adjusting entries (add any accounts necessary). Good luck!

ThreeBrothers	Unadjusted Trial Balance
	Dec. 31, 2017
	debit	credit
Cash	4,400,000
Accounts Receivable	22,500,000
Allowance for Bad Debts		20,000
Inventory	2,500,000
Purchases	85,832,500
Construction in Progress Inventory	36,000,000
Billings on Contract		35,000,000
PP&E	60,000,000
Accumulated Depreciation		36,000,000
Accounts Payable		18,000,000
Income Tax Payable		136,000
Common Stock		1,500,000
Retained Earnings		33,444,000
Sales Revenue		134,500,000
Sales Returns	2,017,500
NEWPROD Revenue		9,000,000
FITTRACKER Revenue		10,000,000
Cost of NEWPROD Sold	8,100,000
Cost of FITTRACKER Sold	4,500,000
General and Admin	51,750,000
TOTAL	277,600,000	277,600,000

Cost of Goods Sold: ThreeBrothers uses a periodic FIFO inventory system for its normal operations. A physical inventory count indicated 40,000 units on hand at the end of 2017.

                                    PURCHASES FOR 2017(normal operations)

Beginning units:	5,000 units @ $500 each
Purchases:
Apr - May	40,000 units @ $500 each
Jun - Jul	35,000 units @ $505 each
Aug - Sep	48,500 units @ $515 each
Oct	24,000 units @ $520 each
Nov - Dec	20,000 units @ $535 each

1. I need the adjusting journal entry and closing journal entry, if nescessary. Thank You.

Answer 1

Adjusting entries:
Date	Accounts Titles	Debit $	Credit $
dec 31 2017	Inventory-closing	21100000
	Purchases		21100000
	(20000*535+20000*520)
	(the adjusting entry for closing inventory)
Closing entries:
Date	Accounts Titles	Debit $	Credit $
dec 31 2017	Income Summary	79832500
	Inventory		2500000
	Purchases		64732500
	Cost of NEWPROD Sold		8100000
	Cost of FITTRACKEER Sold		4500000
	(transferred of COGS to Income Summary)
dec 31 2017	Income Summary	51750000
	General and Admin expense		51750000
	(tranfer of admin expenses to income summary)
dec 31 2017	Sales revenue	134500000
	NEWPROD Revenue	9000000
	FITTRACKER Revenue	10000000
	Sales returns		2017500
	Income Summary		151482500
	(transfer of sales revenues to income summary)