1. (Adjusting Entries) Selected accounts of Conan Company are shown below.
|
|
Supplies
|
|
|
Accounts Receivable
|
|
Beg. Bal.
|
1,200
|
8/31
|
712
|
|
8/17
|
12,100
|
|
|
|
|
|
|
|
|
8/31
|
3,600
|
|
|
|
Salaries and Wages Expense
|
|
Salaries and Wages Payable
|
|
8/15
|
2,600
|
|
|
|
|
|
8/31
|
2,100
|
|
8/31
|
2,100
|
|
|
|
|
|
|
|
Unearned Service Revenue
|
|
Supplies Expense
|
|
8/31
|
2,000
|
8/20
|
3,200
|
|
8/31
|
712
|
|
|
|
Service Revenue
|
|
|
|
|
|
|
|
|
8/17
|
12,100
|
|
|
|
|
|
|
|
|
8/31
|
3,600
|
|
|
|
|
|
|
|
|
8/31
|
2,000
|
|
|
|
|
|
Instructions
From an analysis of the T-accounts, reconstruct (a) the August transaction entries, and (b) the adjusting journal entries that were made on August 31, 2014. Prepare explanations for each journal entry.
2. (Closing Entries for a Corporation) Presented below are selected account balances for Kirby Co. as of December 31, 2014.
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Merchandise Inventory 12/31/14
|
$24,000
|
Sales
|
$164,000
|
|
Common Stock
|
30,000
|
Cost of Goods Sold
|
90,280
|
|
Retained Earnings
|
18,000
|
Selling Expenses
|
6,400
|
|
Dividends
|
7,200
|
Administrative Expenses
|
15,200
|
|
Sales Returns and Allowances
|
4,800
|
Income Tax Expense
|
12,000
|
|
Sales Discounts
|
6,000
|
|
|
Instructions
Prepare closing entries for Kirby Co. on December 31, 2014.