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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

A portion of Johnson’s Farm Supply work sheet for the year ended December 31 follows:

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Required

  1. 1. Determine the entries that appeared in the Adjustments columns and prepare the general journal entries for the adjustments in the general journal, page 19.
  2. 2. Determine the net income for the year.
  3. 3. What is the amount of the ending capital?

1.

To determine

Record the adjustments columns in general journal.

Explanation

General journal is a record of financial transaction. The transactions are recorded in the journal prior to posting them to the accounts in the general ledger.

Journalize the entries in general journal.

General journalPage: 19
DateDescriptionPost ref.Debit ($)Credit($)
20___
Dec.31Income summary74,852
(a)      Merchandise inventory74,852
      
(b)31Merchandise inventory75,262
      Income summary75,262
(c)31Depreciation expense, Equipment19,275
     Accumulated depreciation, Equipment19,275
(d)31Insurance expense3,600
     Prepaid expense3,600
(e)31Salaries expense1,195...

2.

To determine

Calculate the net income for the year.

3.

To determine

Calculate the ending capital amount.

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