Post the adjusting and closing entries .....see journal attachment

Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem

Chapter 5 Merchandising Operations

Req. 2 Comprehensive Problem Chs 1-5 St. Paul Technology

Worksheet

For the Month Ended January 31, 2012 ADJUSTED

ACCOUNT TITLE

TRIAL BALANCE ADJUSTMENTS TRIAL BALANCE INCOME STATEMENT BALANCE SHEET

DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

Cash $16,260 $16,260 $16,260

Accounts receivable 18,930 18,930 18,930

Inventory 65,000 (e) $1,540 6,3460 63,460

Supplies 2,580 (a) 1,400 1,180 1,180

Building 188,090 188,090 188,090

Accum. Depre. - building

$35,300 (b) 3,800 $39,100 $39,100

Furniture 44,800 44,800 44,800

Accum. Depre. - furniture

5,500 (b) 4,600 10,100 10,100

Accounts payable 27,900 27,900 27,900

Salary payable 0 (d) 1,100 1,100 1,100

Unearned sales revenue 6,480 (c) $4,420 2,060 2,060

Note payable, long-term 85,000 85,000 85,000

Tarsus, capital 152,190 152,190 152,190

Tarsus, drawing 9,100 9,100 9,100

Sales revenue 179,930 (c) 4,420 184,350 $184,350

Sales discounts 7,100 7,100 7,100 Sales returns and allowances 8,080 8,080 8,080

Cost of goods sold 101,900 (e) 1,540 103,440 103,440

Selling expense 21,380 (a) 700 24,180 24,180

(b) 950*

(b) 1,150*

General expense 9,080 (a) 700 17,180 17,180

(b) 2,850*

(b) 3,450*

(d) 1,100

$492,300 $492,300 $16,860 $16,860 $501,800 $501,800 $159,980 $184,350 $341,820 $317,450

Net income 24,370 24,370

$184,350 $184,350 $341,820 $341,820

*Students may combine the b-1 and b-2 amounts as $2,100 Selling expense and $6,300 General expense.

Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem

Chapter 5 Merchandising Operations

(continued) Comprehensive Problem Chs 1-5 Req. 3 (financial statements)

St. Paul Technology

Income Statement

Month Ended January 31, 2012

Revenue:

Sales revenue $184,350

Less: Sales returns and allowances

$88,080

Sales discounts 7,100 15,180

Net sales revenue $169,170

Cost of goods sold 103,440

Gross profit $65,730

Operating expenses:

Selling expense $24,180

General expense 17,180 41,360

Net income $24,370

St. James Technology

Statement of Owner’s Equity

Month Ended January 31, 2012

Tarsus, capital, January 1, 2012 $152,190

Net income 24,370

176,560

Drawing (9,100)

Tarsus, capital, January 31, 2012 $167,460

Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem

Chapter 5 Merchandising Operations

(continued) Comprehensive Problem Chs 1-5 Req. 3 (financial statements)

St. Paul Technology

Balance Sheet

January 31, 2012

ASSETS

Current assets:

Cash $ 16,260

Accounts receivable 18,930

Inventory 63,460

Supplies 1,180

Total current assets 99,830

Plant assets:

Building $188,090

Accumulated depreciation— building

(39,100) 148,990

Furniture $44,800

Accumulated depreciation— furniture

(10,100) 34,700

Total assets $283,520

LIABILITIES

Current liabilities:

Accounts payable $27,900

Salary payable 1,100

Unearned sales revenue 2,060

Total current liabilities 31,060

Long-term liabilities:

Note payable, long-term 85,000

Total liabilities 116,060

OWNER’S EQUITY

Tarsus, capital 167,460

Total liabilities and owner’s equity $283,520

Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem

Chapter 5 Merchandising Operations

(continued) Comprehensive Problem Chs 1-5 Req. 4 (adjusting and closing entries)

Journal Entry

DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT

Adjusting Entries

2012

a. Jan 31 Selling expense 700

General expense 700

Supplies 1,400

b. 31 Selling expense 950

General expense 2,850

Accumulated depreciation—

building 3,800

b. 31 Selling expense 1,150

General expense 3,450

Accumulated depreciation—

furniture 4,600

c. 31 Unearned sales revenue 4,420

Sales revenue 4,420

d. 31 General expense 1,100

Salary payable 1,100

e. 31 Cost of goods sold 1,540

Inventory 1,540

Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem

Chapter 5 Merchandising Operations

(continued) Comprehensive Problem Chs 1-5 Req. 4 (adjusting and closing entries)

Journal Entry

DATE ACCOUNTS AND EXPLANATIONS

POST.

REF. DEBIT CREDIT

Closing Entries

Jan 31 Sales revenue 184,350

Sales discounts 7,100

Sales returns and allowances

8,080

Income summary 169,170

31 Income summary 144,800

Cost of goods sold 103,440

Selling expense 24,180

General expense 17,180

31 Income summary

($169,170 − $144,800) 24,370

Tarsus, capital 24,370

31 Tarsus, capital 9,100

Tarsus, drawing 9,100