11An adjusted trial balance is shown below.
Debit
Credit
Cash$12,600
Accounts receivable2,400
Prepaid rent800
Inventory28,000
Accounts payable$4,200
Salary payable1,000
Notes payable800
Common stock1,000
Retained earnings12,800
Dividends1,000
Sales revenue96,000
Sales returns and allowances1,600
Sales discounts400
Cost of goods sold25,000
Salary expense21,000
Rent expense14,000
Depreciation expense8,500
Supplies expense500
Total$115,800$115,800
What will be the final balance in Retained earnings after the closing entries?
A) $37,800
B) $12,700
C) $24,000
D) $36,800
12Sales revenues were $20,000, Sales returns and allowances were $300, Sales discounts were $700, Cost of goods sold were $12,000, and all other expenses totaled $4,500. The first closing entry would include which of the following line items?
A) Credit to Income summary of $19,000
B) Credit to Income summary of $20,000
C) Debit to Income summary of $2,500
D) Debit to Income summary of $16,500
13Sales revenues were $20,000, Sales returns and allowances were $300, Sales discounts were $700, Cost of goods sold were $12,000, and all other expenses totaled $4,500. The second closing entry would include which of the following line items?
A) Debit to Income summary of $17,500
B) Credit to Income summary of $16,500
C) Debit to Income summary of $4,500
D) Debit to Income summary of $16,500
14Sales revenues were $20,000, Sales returns and allowances were $300, Sales discounts were $700, Cost of goods sold were $12,000, and all other expenses totaled $4,500. The third closing entry would include which of the following line items?
A) Debit to Income summary of $2,500
B) Credit to Income summary of $2,500
C) Debit to Income summary of $19,000
D) Debit to Income summary of $16,500
15A business has Beginning retained earnings of $100,000. During the year, Sales revenues were $20,000, Sales returns and allowances were $300, Sales discounts were $700, Cost of goods sold were $12,000, and all other expenses totaled $4,500. $1,000 of dividends were paid. The fourth closing entry would include which of the following line items?
A) Debit to Income summary of $1,000
B) Credit to Income summary of $1,000
C) Debit to Retained earnings of $1,000
D) Debit to Retained earnings of $16,500
16A business has Beginning retained earnings of $ 100,000. During the year, Sales revenues were $20,000, Sales returns and allowances were $300, Sales discounts were $700, Cost of goods sold were $12,000, and all other expenses totaled $4,500. $1,000 of dividends were paid. The ending balance in Retained earnings, after closing entries, would be:
A) $119,000.
B) $ 98,500.
C) $101,500.
D) $ 1,500.
17A company’s ledger shows Inventory balance of $20,000 and a physical count of the inventory shows $19,000. Please provide the adjusting entry needed to record the shrinkage.
18A trial balance is presented below. The company uses the perpetual inventory system. A physical inventory reveals only $28,000 of inventory on hand.
Debit
Credit
Cash$12,600
Accounts receivable2,400
Prepaid rent800
Inventory30,000
Accounts payable$4,200
Salary payable1,000
Notes payable800
Common stock1,000
Retained earnings12,800
Dividends1,000
Sales revenue96,000
Sales returns and allowances1,600
Sales discounts400
Cost of goods sold23,000
Salary expense21,000
Rent expense14,000
Depreciation expense8,500
Supplies expense500
Total$115,800$115,800
Please prepare the adjusting entry to inventory.