4.
Closing Entries
20Y2
May 31
31
Problem 5-6A
Score:
Instructions
Answers are entered in the cells with gray backgrounds.
Enter a zero in cells you would otherwise leave blank.
1.
Sales 11,343,000$
Expenses:
Cost of goods sold 7,850,000$
Selling expenses 1,644,000
Administrative expenses 884,600
Interest expense 21,000
Total expenses (10,399,600)
Net income 943,400$
Clairemont Co.
75,000 – 75,000
– 943,400 943,400
– (100,000) (100,000)
Balances, May 31, 20Y2 500,000$ 3,792,500$ 4,292,500$
3.
Current assets:
240,000$
966,000
1,690,000
22,500
13,500
8,000
2,940,000$
Property, plant, and equipment:
Office equipment 830,000$
Current liabilities:
326,000$
50,000
41,500
40,000
Total current liabilities
Note payable (long-term portion)
Name:
Solution
Section:
ON
Clairemont Co.
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Clairemont Co.
Income Statement
For the Year Ended May 31, 20Y2
Issued common stock
Net income
Dividends
Accounts payable
Balance Sheet
May 31, 20Y2
Assets
Cash
Accounts receivable
Inventory
Estimated returns inventory
Office supplies
Prepaid insurance
Total current assets:
Note payable (current portion)
Salaries payable
Customer refunds payable
Common stock 500,000$
Retained earnings 3,792,500
Total stockholders’ equity 4,292,500
Total liabilities and stockholders’ equity 5,000,000$
4.
Closing Entries
Sales 11,343,000
Cost of Goods Sold 7,850,000
Sales Salaries Expense 916,000
Advertising Expense 550,000
Depreciation Expense – Store Equipment 140,000
Miscellaneous Selling Expense 38,000
Office Salaries Expense 650,000
Rent Expense 94,000
Depreciation Expense – Office Equipment 50,000
Insurance Expense 48,000
Office Supplies Expense 28,100
Miscellaneous Administrative Expense 14,500
Interest Expense 21,000
Retained Earnings 943,400
Retained Earnings 100,000
Dividends 100,000
20Y2
May 31
31
Problem 5-6B
Score:
Key Code:
Instructions
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1.
Sales
Expenses:
Total expenses
Net income
2.
Common
Stock
Retained
Earnings
Total
Balances, July 1, 20Y6
Balances, June 30, 20Y7
0%
Name:
Section:
[Key code here]
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Kanpur Co.
Income Statement
Kanpur Co.
Statement of Stockholders’ Equity
3.
Current assets:
Property, plant, and equipment:
Office equipment
Accumulated depreciation
Book value – office equipment
Store equipment
Accumulated depreciation
Book value – store equipment
Total property, plant, and equipment
Total assets
Current liabilities:
Long-term liabilities:
Total liabilities
Common stock
Retained earnings
Total stockholders’ equity
Kanpur Co.
Balance Sheet
Assets
Total current assets:
Liabilities
Total current liabilities
Stockholders’ Equity
Total liabilities and stockholders’ equity
4.
Closing Entries
20Y7
June 30
30
Problem 5-6B
Score:
Instructions
Answers are entered in the cells with gray backgrounds.
1.
Sales 8,925,000$
Expenses:
Cost of goods sold 5,620,000$
Selling expenses 1,321,000
Administrative expenses 632,000
Interest expense 12,000
Total expenses (7,585,000)
Net income 1,340,000$
Kanpur Co.
7,500 – 7,500
– 1,340,000 1,340,000
– (300,000) (300,000)
Balances, June 30, 20Y7 50,000$ 1,421,000$ 1,471,000$
3.
Current assets:
92,000$
450,000
370,000
5,000
10,000
12,000
939,000$
Property, plant, and equipment:
Current liabilities:
38,500$
10,000
7,000
4,000
Total current liabilities
Name:
Solution
Section:
ON
Dividends
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Kanpur Co.
Income Statement
For the Year Ended June 30, 20Y7
Issued common stock
Net income
Kanpur Co.
Balance Sheet
June 30, 20Y7
Assets
Cash
Accounts receivable
Inventory
Estimated returns inventory
Office supplies
Prepaid insurance
Total current assets:
Accounts payable
Customer refunds payable
Note payable (current portion)
Salaries payable
Common stock 50,000$
Retained earnings 1,421,000
Total stockholders’ equity 1,471,000
Total liabilities and stockholders’ equity 1,663,500$
4.
Closing Entries
Sales 8,925,000
Cost of Goods Sold 5,620,000
Sales Salaries Expense 850,000
Advertising Expense 420,000
Depreciation Expense – Store Equipment 33,000
Miscellaneous Selling Expense 18,000
Office Salaries Expense 540,000
Rent Expense 48,000
Insurance Expense 24,000
Depreciation Expense – Office Equipment 10,000
Office Supplies Expense 4,000
Miscellaneous Administrative Expense 6,000
Interest Expense 12,000
Retained Earnings 1,340,000
Retained Earnings 300,000
Dividends 300,000
Stockholders’ Equity
20Y7
June 30
30
Key Code:
An asterisk (*) will appear to the right of an incorrect entry.
1.
Wyman Company uses which type of inventory system?
2.
Sales
Cost of goods sold:
Cost of merchandise purchased:
Total cost of merchandise purchased
Inventory available for sale
Problem 5-10A
Name:
Section:
Score:
0%
[Key code here]
Instructions
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.
Wyman Company
Income Statement
Cost of goods sold before estimated returns
Increase in estimated returns inventory
Cost of goods sold
Gross profit
Expenses:
Selling expenses:
Total selling expenses
Administrative expenses:
Total administrative expenses
Total expenses
Income from operations
Other revenue and expense:
Net income
3. Closing Entries
Dec. 31
31
4.
Net income under perpetual inventory system
1.
Wyman Company uses which type of inventory system? periodic
2.
Sales 3,280,000$
Cost of goods sold:
257,000$
Cost of merchandise purchased:
2,650,000$
(93,000)
(37,000)
Miscellaneous selling expense 12,000
Total selling expenses 372,000$
Administrative expenses:
Office salaries expense 175,000$
Rent expense 28,000
Freight in
Inventory, December 31, 20Y5
Scoring:
ON
Problem 5-10A
Name:
Solution
Section:
Purchases discounts
Instructions
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Wyman Company
Income Statement
For the Year Ended December 31, 20Y5
Inventory, January 1, 20Y5
Purchases
Purchases returns and allowances
Other revenue and expense:
7,000$
(2,000) 5,000
Net income 185,000$
3. Closing Entries
Inventory 305,000
Sales 3,280,000
Purchases Returns and Allowances 93,000
Purchases Discounts 37,000
Estimated Returns Inventory 5,000
Rent Revenue 7,000
Inventory 257,000
Purchases 2,650,000
Freight In 48,000
Sales Salaries Expense 300,000
Advertising Expense 45,000
Delivery Expense 9,000
Insurance Expense 3,000
Office Supplies Expense 2,000
Depreciation Expense—Office Equipment 1,500
Miscellaneous Administrative Expense 3,500
Interest Expense 2,000
Retained Earnings 185,000
31 Retained Earnings 25,000
Rent revenue
Interest expense
Dec. 31
Key Code:
An asterisk (*) will appear to the right of an incorrect entry.
1.
Simkins Company uses which type of inventory system?
2.
Sales
Cost of goods sold:
Cost of merchandise purchased:
Total cost of merchandise purchased
Inventory available for sale
Problem 5-10B
Name:
Section:
Score:
0%
[Key code here]
Instructions
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.
Simkins Company
Income Statement
Cost of goods sold before estimated returns
Increase in estimated returns inventory
Cost of goods sold
Gross profit
Expenses:
Selling expenses:
Total selling expenses
Administrative expenses:
Total administrative expenses
Total expenses
Income from operations
Other income and expense:
Net income
3. Closing Entries
June 30
30
4.
Net income under perpetual inventory system
1.
Simkins Company uses which type of inventory system? periodic
2.
Sales 6,590,000$
Cost of goods sold:
415,000$
Cost of merchandise purchased:
4,100,000$
(32,000)
(13,000)
45,000
Total cost of merchandise purchased 4,100,000
Inventory available for sale 4,515,000$
Depreciation expense—store equipment 12,000
Miscellaneous selling expense 28,000
Total selling expenses 953,000$
Administrative expenses:
Inventory, June 30, 20Y9
Scoring:
ON
Problem 5-10B
Name:
Solution
Section:
Purchases discounts
Instructions
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.
An asterisk (*) will appear to the right of an incorrect entry.
Simkins Company
Income Statement
For the Year Ended June 30, 20Y9
Inventory, July 1, 20Y8
Purchases
Purchases returns and allowances
Freight in
Depreciation expense—office equipment 4,000
Miscellaneous administrative expense 16,000
Total administrative expenses 460,000
Total expenses (1,413,000)
Income from operations 1,178,000$
Other income and expense:
32,500$
(2,500) 30,000
Net income 1,208,000$
3. Closing Entries
Inventory 508,000
Inventory 415,000
Purchases 4,100,000
Freight In 45,000
Sales Salaries Expense 580,000
Advertising Expense 315,000
Delivery Expense 18,000
Depreciation Expense—Store Equipment 12,000
Miscellaneous Selling Expense 28,000
Rent revenue
Interest expense
June 30