Journalizing adjusting and closing entries, and computing gross profit
Emerson St. Paul Book Shop’s accounts at June 30, 2012, included the following unadjusted balances:
|
Inventory |
$ 5,400 |
|
Cost of goods sold |
40,300 |
|
Sales revenue |
85,300 |
|
Sales discounts |
1,400 |
|
Sales returns and allowances |
2,000 |
The physical count of inventory on hand on June 30, 2012, was $5,000.
Requirements
1. Journalize the adjustment for inventory shrinkage.
2. Journalize the closing entries for June 2012.
3. Compute the gross profit.