E5-8 - E5-8 Correct. Presented is information related to...

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Unformatted text preview: E5-8 Correct. Presented is information related to Rogers Co. for the month of January 2008. Ending inventory per perpetual records Ending inventory actually on hand Cost of goods sold Freight-out Insurance expense Rent expense Salary Expense Sales Discounts Sales Returns and Allowances Sales $21,600 21,000 218,000 7,000 12,000 20,000 61,000 10,000 13,000 350,000 Instructions (a) Prepare the necessary adjusting entry for inventory. Account / Description Cost of Goods Sold Merchandise Inventory Debit $ 600 Credit $ 600 (b) Prepare the necessary closing entries. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Account / Description Sales Debit $ 350000 Credit Income Summary (To close income statement accounts with credit balances.) Income Summary Cost of Goods Sold Salary Expense Rent Expense Sales Returns and Allowances Insurance Expense Sales Discounts Freight-out (To close income statement accounts with debit balances.) Income Summary Retained Earnings (To close temporary accounts.) $ 350000 $ 341600 $ 218600 $ 61000 $ 20000 $ 13000 $ 12000 $ 10000 $ 7000 $ 8400 $ 8400 ...
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This note was uploaded on 07/31/2011 for the course ACCT 557 taught by Professor Kahn during the Spring '10 term at Strayer.

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E5-8 - E5-8 Correct. Presented is information related to...

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