The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2011, unadjusted trial balance of Deacon Co., a business owned by Julie Deacon. Use these account balances along with the additional information to journalize (a) adjusting entries and (b) closing entries. Deacon Co. uses a perpetual inventory system.
|
|
Debit |
Credit |
|
Merchandise inventory |
$ 28,000 |
|
|
Prepaid selling expenses |
5,000 |
|
|
J. Deacon,Withdrawals |
2,200 |
|
|
Sales |
|
$429,000 |
|
Sales returns and allowances |
16,500 |
|
|
Sales discounts |
4,000 |
|
|
Cost of goods sold |
211,000 |
|
|
Sales salaries expense |
47,000 |
|
|
Utilities expense |
14,000 |
|
|
Selling expenses |
35,000 |
|
|
Administrative expenses |
95,000 |
|
Additional Information
Accrued sales salaries amount to $1,600. Prepaid selling expenses of $2,000 have expired. A physical count of year end merchandise inventory shows $27,450 of goods still available.