7.03 Completing the Accounting Cycle for a Merchandising Corporation - Part 1 1.Collecting and verifying source documents 2.Analyzing business

7.03 Completing the Accounting Cycle for a Merchandising Corporation

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Part 1: Income Summary Sales $97,000.00 Sales Discount $1,000.00 Sales Return and Allowance $2,400.00 PurchasesPurchase $25,000.00 Discount $500.00 Purchase Return and Allowance $1,500.00 Transport In $3,000.00 $5,532.00 Insurance Expense $300.00 Miscellaneous Expense $6,000.00 Rent Expense $12,000.00 Supplies Expense $450.00 Utilities Expense $14,000.00 $69,682.00 $99,000.00 Net Income $29,318.00 $99,000.00 $99,000.00 Date Closing Entries Debit credit 1. Collecting and verifying source documents. 2. Analyzing business transactions. 3. Journalizing business transactions. 4. Posting journal entries to ledgers. 5. Preparing a trial balance. 6. Completing a worksheet. 7. Preparing financial statements. 8. Journalizing and posting adjusting entries. 9. Journalizing and posting closing entries. 10. Preparing a post-closing trial balance. Part 2 : Federal Corp. Income Tax Expense
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Dec. 31 Sales 97,000.00 Income Summary 97,000.00 Income Summary 1,000.00 Sales Discount 1,000.00 Income Summary 2,400.00 Sales Return & Allowance 2,400.00 Income Summary 25,000.00 PurchasesPurchase 25,000.00 Discount 500.00 Income Summary 500.00 Purchase Return & Allowance 1,500.00 Income Summary 1,500.00 Income Summary 3,000.00 Transport In 3,000.00 Income Summary 5,532.00
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