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3 years ago

Presented below are selected account balances for Tamarisk Co. as of December 31, 2020.

Business

1 answer:

Svetradugi [14.3K]3 years ago

7 0

Answer and Explanation:

The closing entries for the following accounts are presented below:

1. Sales Revenue A/c Dr $408,750

To Income Summary $408,750

(Being revenue account closed)

2. Income summary A/c Dr $323,830

To Cost of Goods Sold $229,017

To Sales Returns and Allowances $11,908

To Sales Discounts $15,070

To Selling Expenses $16,133

To Administrative Expenses $37,525

To Income Tax Expense $30,300

(Being expenses accounts are closed)

3. Income summary A/c Dr $84,930 ( $408,750 - $323,830)

To Retained earning $84,930

(Being the difference is credited to retained earning)

4. Retained earnings A/c Dr $17,873

To Dividend A/c $17,873

(Being dividend account is closed)

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3 years ago

An employer pays $90 of a $100 group disability premium, and the employee pays the other $10. The disability benefit under the p

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EBIT goes from $30M to $33M; Depreciation goes from $10M to $12M; and interest expense goes from $6 M to $8M.1. What is the perc

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3 years ago

At the beginning of July, CD City has a balance in inventory of $2,850. The following transactions occur during the month of Jul

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Answer:

Gross profit = $ 3950.

Explanation:

July-3. Dr Merchandise Inventory 1750

Cr Accounts payable 1750

( To record purchase of inventory on account)

July-4. Dr Merchandise Inventory 120

Cr Cash 120

( To record payment of freight charges)

July-9 Dr Accounts payable 400

Cr Merchandise Inventory 400

( To record return of inventory)

July-11 Dr Accounts payable 1750

Cr Cash 1750

( To record payment from wholesale music in full)

July-12.a) Dr Cost of goods sold 2450

Cr Merchandise inventory 2450

b) Dr Account receivable 4700

Cr Sales revenue 4700

(To record sales of goods to a customer)

July-15. Dr Cash 4700

Cr Account receivable 4700

( To record receipt from sale of goods)

July-18 Dr Merchandise inventory 2550

Cr Accounts payable 2550

(To record purchase of inventory on account)

July-22.a) Dr Cost of goods sold 1950

Cr merchandise inventory 1950

Dr Account receivable 3650

Cr sales revenue 3650

(To record sales of goods on account)

July-28 Dr Accounts payable 190

Cr Merchandise inventory 190

(To record purchase return)

July-30. Dr Accounts payable 2550

Cr Cash 2550

(To record paid in full).

2. Income statement

Sales (4700+3650) = 8350

Less: Cost of goods sold (2450+1950) =(<u>4400</u>)

Gross profit 3950

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3 years ago