168. From the adjusted trial balance for Worker Products, prepare the necessary closing entries.
WORKER PRODUCTS COMPANY
Adjusted Trial Balance
December 31
Debit
Credit
Cash
$ 9,400
Accounts receivable
25,000
Merchandise inventory
36,000
Office supplies
900
Store equipment
75,000
Accumulated depreciation – store equipment
$ 22,000
Office equipment
60,000
Accumulated depreciation – office equipment
15,000
Accounts payable
42,000
Notes payable
10,000
Common stock
40,000
Retained earnings
70,700
Dividends
48,000
Sales
325,000
Sales discounts
6,000
Sales returns and allowances
16,500
Cost of goods sold
195,000
Sales salaries expense
32,500
Depreciation expense – store equipment
11,000
Depreciation expense – office equipment
7,500
Office supplies expense
1,300
Interest expense
600
Totals
$524,700
$524,700
169. Neutron uses a periodic inventory system. Prepare general journal entries to record the following transactions for Neutron:
June
10
Neutron purchased merchandise on credit from Proton for $9,000, terms 2/10, n/30. FOB destination. Transportation costs of $350 were paid by Proton.
12
Neutron returned $600 of merchandise from the June 10 purchase.
19
Neutron paid Proton for the June 10 purchase.
170. Steve’s Skateboards uses the periodic inventory system and had the following sales transactions during April:
April 2
Sold merchandise to Happy Hobby Shop on credit for $4,800, terms 1/15, n/60. The items sold had a cost of $2,700.
April 4
Happy Hobby Shop returned merchandise that had a selling price of $200. The cost of the merchandise returned was $110.
April 13
Happy Hobby Shop paid for the merchandise sold on Aril 2, taking any appropriate discount earned
Prepare the journal entries that Steve’s Skateboards must make to record these transactions.
171. Maia’s Bike Shop uses the periodic inventory system and had the following transactions during the month of May:
May 3
Sold merchandise to a customer on credit for $600, terms 2/10, n/30. The cost of the merchandise sold was $350.
May 4
Sold merchandise to a customer for cash of $425. The cost of the merchandise was $250.
May 6
Sold merchandise to a customer on credit for $1,300, term 2/10, n/30. The cost of the merchandise sold was $750.
May 8
The customer from May 3 returned merchandise with a selling price of $100. The cost of merchandise returned was $55.
May 15
The customer from May 6 paid the full amount due, less any appropriate discounts earned.
May 31
The customer from May 3 paid the full amount due, less any appropriate discounts earned.
Prepare the required journal entries that Maia’s Bike Shop must make to record these transactions.
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