Tim Jarosz Company had the following account balances at year-end

Tim Jarosz Company had the following account balances at year-end; Cost of Goods Sold $60,000, Inventory $15,000, Operating Expenses $29,000, Sales Revenue $115,000, Sales Discounts $1,200, and Sales Returns and Allowances $1,700. A physical count of inventory determines that merchandise inventory on hand is $13,600.

Instructions

Prepare the adjusting entry necessary as a result of the physical count.
Prepare closing entries

Solution

Tim Jarosz Company
Adjusting Journal Entries

Tim Jarosz Company
Closing Journal Entries

Problems: Accounting for Merchandising Operations

Problem-1: Accounting for Merchandising Operations

Kern's Book Warehouse distributes hardcover looks to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Kern's inventory consisted of...

Problem-2: Accounting for Merchandising Operations

Renner Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Renner showed Cash of $5,000 and Owner's Capital of...

Problem-3: Accounting for Merchandising Operations

Big Box Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company's fiscal...

Problem-4: Accounting for Merchandising Operations

Yolanda Hagen, a former disc golf star, operates Yolanda's Discorama. At the beginning of the current season on April 1, the ledger of yolanda's Discorama showed Cash $1,800, Inventory $2,500...

Problem-5: Accounting for Merchandising Operations

The trial balance of Gaolee Fashion Center contained the following accounts at November 30, the end of the company's fiscal year. Adjustment data: Supplies on hand totaled $2,600. Depreciation is...

Problem-6: Accounting for Merchandising Operations

At the end of Donaldson Department Store's fiscal year on November 30, 2019, these accounts appeared in its adjusted trial balance. Additional Facts: Merchandise inventory on November 30, 2019, is...

Problem-7: Accounting for Merchandising Operations

Kayla Incorporation operates a retail operation that purchases and sells home entertainment products. The company purchase all merchandise inventory on credit and uses a periodic inventory system. The Accounts Payable...

Problem-8: Accounting for Merchandising Operations

At the beginning of the current season on April, the ledger of Gage Pro Shop showed Cash $3,000. Inventory $4,000, and Owner's Capital $7,000. These transactions occurred during April 2019....

Problem-9: Accounting for Merchandising Operations

Information related to Kerber Co. is presented below On April 5, purchased merchandise from Wilkes Company for $23,000, terms 2/10, net/30, FOB shipping point On April 6, paid freight costs...

Problem-10: Accounting for Merchandising Operations

On September 1, Nixa Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions...

Problem-11: Accounting for Merchandising Operations

Presented below are transactions related to R. Humphrey Company On December 3, R. Humphrey Company sold $570,000 of merchandise to Frazier Co., terms 1/10, n/30, FOB destination. R Humphrey paid...

Problem-12: Accounting for Merchandising Operations

On June 10, Diaz Company purchased $8,000 of merchandise from Taylor Company, FOB shipping point, terms 2/10, n/30. Diaz pays the freight costs of $400 on June 11. Damaged goods...

Problem-13: Accounting for Merchandising Operations

The adjusted trial balance of Sang Company shows the following data pertaining to sales at the end of its fiscal year October 31, 2019; Sales Revenue $820,000, Freight-Out $16,000, Sales...

Problem-14: Accounting for Merchandising Operations

Problem-15: Accounting for Merchandising Operations

Presented below is information related to Hoerl Co. for the month of January 2020. Instructions Prepare the necessary adjusting entry for inventory. Prepare the necessary closing entries.

Problem-16: Accounting for Merchandising Operations

Presented below is information for Kaila Company for the month of March 2019. Instructions Prepare a multiple-step income statement Compute the gross profit rate.

Problem-17: Accounting for Merchandising Operations

In its income statement for the year ended December 31, 2019. Anhad Company reported the following condensed data. Operating expenses$725,000Interest revenue$28,000 Cost of goods sold1,289,000Loss on disposal of plant assets17,000...

Problem-18: Accounting for Merchandising Operations

An inexperienced accountant for Stahr Company made the following errors in recording merchandising transactions. A $210 refund to a customer for faulty merchandise was debited to Sales revenue $210 and...

Problem-19: Accounting for Merchandising Operations

In 2019, Laquen Company had net sales of $900,000 and cost of goods sold of $522,000. Operating expenses were $225,000, and interest expense was $11,000. Laquen prepares a multiple-step income...

Problem-20: Accounting for Merchandising Operations

Presented below is financial information for two different companies. Instructions Determine the missing amounts. Determine the gross profit rates. (Round to one decimal place.)

Problem-21: Accounting for Merchandising Operations

Financial information is presented below for three different companies. Instructions Determine the missing amounts.

Problem-22: Accounting for Merchandising Operations

Presented below are selected accounts for McPhan Company as reported in the worksheet using a perpetual inventory system at the end of May 2019 Instructions Complete the worksheet by extending...

Problem-23: Accounting for Merchandising Operations

The trial balance columns of the worksheet using a perpetual inventory system for Balistreri Company at June 30, 2019, are as follows Balistreri CompanyWorksheetFor the Month Ended June 30, 2019...

Problem-24: Accounting for Merchandising Operations

The trial balance of A. Wiencek Company at the end of its fiscal year, August 31, 2019, includes these accounts: Inventory $19,500; Purchases $149,000; Sales Revenue $190,000; Freight-in $5,000; Sales...

Problem-25: Accounting for Merchandising Operations

On January 1, 2019, Brooke Hanson Corporation had inventory of $50,000. At December 31, 2019, Brooks Hanson had the following account balances. Freight-in$4,000 Purchases509,000 Purchase discounts6,000 Purchase returns and allowances2,000...

Problem-26: Accounting for Merchandising Operations

Below is a series of cost of goods sold sections for companies B, F, L, and R. Instructions Fill in the lettered blanks to complete the cost of goods sold...

Problem-27: Accounting for Merchandising Operations

This information relates to Nandi Co. On April 5, purchased merchandise from Dion Company for $25,000, terms 2/10 net/30, FOB shipping point. On April 6, paid freight costs of $900...

Problem-28: Accounting for Merchandising Operations

This information relates to Chung Co. On April 5, purchased merchandise from Jose Company for $21,000, terms 2/10 net/30, FOB shipping point. On April 6, paid freight costs of $800...

Problem-29: Accounting for Merchandising Operations

Presented below are selected accounts for T. Swift Company as reported in the worksheet at the end of May 2019. Ending inventory is $75,000 Instructions Complete the worksheet by extending...

Accounting for Merchandising Operations

Problem-14: Accounting for Merchandising Operations

Instructions

Solution

Latest Articles