Directions for the rest of the adjusting enteries: Journalize the Closing Entries. (Do Not Post Them) Prepare a Schedule of Goods Available on January 31, 2022 Calculate for both Fifo and Lifo for the Month of January, 2022. (Use the Periodic Method)         A. Ending Inventory         B. Cost of Goods Sold   Here are the adjusting Entries: Supplies on hand are valued at $1,400. Accrued salaries are $3,195. Depreciation for the month is $250. $2,250 of services related to the Unearned Service Revenue has not been earned by month end.     Original Information:  J & M Accounting Services and Office Supplies, LLC Trial Balance January 1, 2022 Title Debit Credit Cash 9,200   Accounts Receivable 2,400   Merchandise Inventory 2,100*   Supplies 860   Equipment 23,000   Accumulated Depreciation   1,500 Accounts Payable   3,300 Unearned Service Revenue   3,600 Salaries and Wages Payable   2,485 Common Stock   20,000 Retained Earnings   6,675 Totals $37,560 $37,560 *(3,000 units at $0.70)  During the month of January, the following summary transactions were completed. 3     Paid January’s rent $350. 3    Purchased merchandise on account from dd’s Discount Supply terms 2/10, n/30. (4,000 units @ $0.75) 4    Sold 4,400 units of inventory for Cash at $0.96 each. (3,000 @ $0.70 and 1,400 @ $0.75) 7    Gave a January 4th customer $192 for 200 units returned costing $150. (Units were returned to inventory.) 7    Received $2,000 cash from customers in payment of account. (No Discounts) 10    Paid $3,550 for salaries due employees, of which $2,485 is for December and $1,065 is for January. 11    Paid $2,800 on account. (No Discounts) 12    Paid dd’s Discount Supply in full, less discount. 13    Purchased 5,000 units for inventory on account from Office Headquarters at $0.80 each. Terms 2/10, n30. 14    Sold 4,000 units of inventory to customers on account at $0.99 per unit. Terms 2/10, n30.              (Sold 2,800 units @ $0.75 and 1,200 units @ $0.80) 17    Received $5,450 Cash for services performed in January. 19    Purchased supplies on account $1,500. 24    Paid Salaries $3,550. 24    Received collections in full, less discount, from customers billed for sales on January 14th.   Round to Whole Dollars.    28    Performed services on account and billed customers $2,180. 28    Paid Office Headquarters in full. (No discount). 31    Received $1,500 from customers for services to be performed in the future.

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 9PB: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as...
icon
Related questions
icon
Concept explainers
Question

Directions for the rest of the adjusting enteries:

  1. Journalize the Closing Entries. (Do Not Post Them)
  2. Prepare a Schedule of Goods Available on January 31, 2022
  3. Calculate for both Fifo and Lifo for the Month of January, 2022. (Use the Periodic Method)
            A. Ending Inventory
            B. Cost of Goods Sold

 

Here are the adjusting Entries:

  1. Supplies on hand are valued at $1,400.
  2. Accrued salaries are $3,195.
  3. Depreciation for the month is $250.
  4. $2,250 of services related to the Unearned Service Revenue has not been earned by month end.

 

 

Original Information: 

J & M Accounting Services and Office Supplies, LLC

Trial Balance

January 1, 2022

Title

Debit

Credit

Cash

9,200

 

Accounts Receivable

2,400

 

Merchandise Inventory

2,100*

 

Supplies

860

 

Equipment

23,000

 

Accumulated Depreciation

 

1,500

Accounts Payable

 

3,300

Unearned Service Revenue

 

3,600

Salaries and Wages Payable

 

2,485

Common Stock

 

20,000

Retained Earnings

 

6,675

Totals

$37,560

$37,560

*(3,000 units at $0.70) 

During the month of January, the following summary transactions were completed.


3     Paid January’s rent $350.
3    Purchased merchandise on account from dd’s Discount Supply terms 2/10, n/30. (4,000 units @ $0.75)

4    Sold 4,400 units of inventory for Cash at $0.96 each. (3,000 @ $0.70 and 1,400 @ $0.75)

7    Gave a January 4th customer $192 for 200 units returned costing $150. (Units were returned to inventory.)

7    Received $2,000 cash from customers in payment of account. (No Discounts)

10    Paid $3,550 for salaries due employees, of which $2,485 is for December and $1,065 is for January.

11    Paid $2,800 on account. (No Discounts)

12    Paid dd’s Discount Supply in full, less discount.

13    Purchased 5,000 units for inventory on account from Office Headquarters at $0.80 each. Terms 2/10, n30.
14    Sold 4,000 units of inventory to customers on account at $0.99 per unit. Terms 2/10, n30.     
        (Sold 2,800 units @ $0.75 and 1,200 units @ $0.80)

17    Received $5,450 Cash for services performed in January.

19    Purchased supplies on account $1,500.

24    Paid Salaries $3,550.

24    Received collections in full, less discount, from customers billed for sales on January 14th.   Round to Whole Dollars.   

28    Performed services on account and billed customers $2,180.

28    Paid Office Headquarters in full. (No discount).

31    Received $1,500 from customers for services to be performed in the future.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 8 steps with 12 images

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting General Journal
Century 21 Accounting General Journal
Accounting
ISBN:
9781337680059
Author:
Gilbertson
Publisher:
Cengage
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College