Presented below is information related to Hurley Co. for the month of January 2012.
|
Ending inventory per |
Insurance expense |
$ 12,000 |
|
|
perpetual records |
$ 21,600 |
Rent expense |
20,000 |
|
Ending inventory actually |
Salaries and wages expense |
55,000 |
|
|
on hand |
21,000 |
Sales discounts |
10,000 |
|
Cost of goods sold |
218,000 |
Sales returns and allowances |
13,000 |
|
Freight out |
7,000 |
Sales revenue |
380,000 |
Instructions
(a) Prepare the necessary adjusting entry for inventory.
(b) Prepare the necessary closing entries.