16) A 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.
17) A 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.
18) A 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 receivable
|
2,400
|
|
Prepaid rent
|
800
|
|
Inventory
|
30,000
|
|
Accounts payable
|
|
$4,200
|
Salary payable
|
|
1,000
|
Notes payable
|
|
800
|
Common stock
|
|
1,000
|
Retained earnings
|
|
12,800
|
Dividends
|
1,000
|
|
Sales revenue
|
|
96,000
|
Sales returns and allowances
|
1,600
|
|
Sales discounts
|
400
|
|
Cost of goods sold
|
23,000
|
|
Salary expense
|
21,000
|
|
Rent expense
|
14,000
|
|
Depreciation expense
|
8,500
|
|
Supplies expense
|
500
|
|
Total
|
$115,800
|
$115,800
|
Please prepare the adjusting entry to inventory.
19) An adjusted trial balance is shown below.
|
Debit
|
Credit
|
Cash
|
$12,600
|
|
Accounts receivable
|
2,400
|
|
Prepaid rent
|
800
|
|
Inventory
|
28,000
|
|
Accounts payable
|
|
$4,200
|
Salary payable
|
|
1,000
|
Notes payable
|
|
800
|
Common stock
|
|
1,000
|
Retained earnings
|
|
12,800
|
Dividends
|
1,000
|
|
Sales revenue
|
|
96,000
|
Sales returns and allowances
|
1,600
|
|
Sales discounts
|
400
|
|
Cost of goods sold
|
25,000
|
|
Salary expense
|
21,000
|
|
Rent expense
|
14,000
|
|
Depreciation expense
|
8,500
|
|
Supplies expense
|
500
|
|
Total
|
$115,800
|
$115,800
|
Please prepare the first closing entry:
20) An adjusted trial balance is shown below.
|
Debit
|
Credit
|
Cash
|
$12,600
|
|
Accounts receivable
|
2,400
|
|
Prepaid rent
|
800
|
|
Inventory
|
28,000
|
|
Accounts payable
|
|
$4,200
|
Salary payable
|
|
1,000
|
Notes payable
|
|
800
|
Common stock
|
|
1,000
|
Retained earnings
|
|
12,800
|
Dividends
|
1,000
|
|
Sales revenue
|
|
96,000
|
Sales returns and allowances
|
1,600
|
|
Sales discounts
|
400
|
|
Cost of goods sold
|
25,000
|
|
Salary expense
|
21,000
|
|
Rent expense
|
14,000
|
|
Depreciation expense
|
8,500
|
|
Supplies expense
|
500
|
|
Total
|
$115,800
|
$115,800
|
Please prepare the second closing entry: