Ex 6-40 Closing entries using periodic inventory system
Pyramid Company is a small rug retailer owned and operated by Rosemary Endecott. After the accounts have been adjusted on January 31, the following selected account balances were taken from the ledger:
|
Advertising Expense |
$ 40,000 |
|
Depreciation Expense |
15,000 |
|
Freight In |
8,000 |
|
Merchandise Inventory, January 1 |
250,000 |
|
Merchandise Inventory, January 31 |
300,000 |
|
Miscellaneous Expense |
29,000 |
|
Purchases |
750,000 |
|
Purchases Discounts |
12,000 |
|
Purchases Returns and Allowances |
8,000 |
|
Rosemary Endecott, Drawing |
60,000 |
|
Salaries Expense |
175,000 |
|
Sales |
1,200,000 |
|
Sales Discounts |
20,000 |
|
Sales Returns and Allowances |
30,000 |
Journalize the closing entries on January 31.