[The following information applies to the questions displayed below.] Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system). Merchandise inventory $ 45,800 Sales returns and allowances $ 4,900 T. Nix, Capital 131,300 Cost of goods sold 109,800 T. Nix, Withdrawals 7,000 Depreciation expense 11,900 Sales 162,600 Salaries expense 40,500 Sales discounts 4,500 Miscellaneous expenses 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $43,850. Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 5-9. (
[The following information applies to the questions displayed below.] Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system). Merchandise inventory $ 45,800 Sales returns and allowances $ 4,900 T. Nix, Capital 131,300 Cost of goods sold 109,800 T. Nix, Withdrawals 7,000 Depreciation expense 11,900 Sales 162,600 Salaries expense 40,500 Sales discounts 4,500 Miscellaneous expenses 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $43,850. Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 5-9. (
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...
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[The following information applies to the questions displayed below.]
Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system).
Merchandise inventory | $ | 45,800 | Sales returns and allowances | $ | 4,900 | |
T. Nix, Capital | 131,300 | Cost of goods sold | 109,800 | |||
T. Nix, Withdrawals | 7,000 | 11,900 | ||||
Sales | 162,600 | Salaries expense | 40,500 | |||
Sales discounts | 4,500 | Miscellaneous expenses | 5,000 | |||
A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $43,850.
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