Question

Exercise 5-07 a-b

Sheffield Company had the following account balances at year-end: Cost of Goods Sold $61,330; Inventory $16,750; Operating Expenses $30,320; Sales Revenue $123,150; Sales Discounts $1,280; and Sales Returns and Allowances $2,070. A physical count of inventory determines that merchandise inventory on hand is $12,640.

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.)

Account Titles and Explanation	Debit	Credit

Prepare closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
(To close accounts with credit balances)
(To close accounts with debit balances)
(To close net income / (loss))

List of accounts:

Accounts Payable
Accounts Receivable
Accumulated Depreciation-Buildings
Accumulated Depreciation-Equipment
Advertising Expense
Buildings
Cash
Casuality Loss from Vandalism
Cost of Goods Sold
Depreciation Expense
Dividend Revenue
Equipment
Freight-In
Freight-Out
Income Summary
Insurance Expense
Interest Expense
Interest Payable
Interest Revenue
Inventory
Land
Loss on Disposal of Plant Assets
Maintenance and Repairs Expense
Notes Payable
Operating Expenses
Owner's Capital
Owner's Drawings
Prepaid Insurance
Property Tax Expense
Property Taxes Payable
Purchase Discounts
Purchase Returns and Allowances
Purchases
Rent Expense
Salaries and Wages Expense
Salaries and Wages Payable
Sales Commissions Expense
Sales Commissions Payable
Sales Discounts
Sales Returns and Allowances
Sales Revenue
Supplies
Supplies Expense
Unearned Service Revenue
Utilities Expense

Answer 1