The following closing entries were prepared for Zenith Products Inc. at December 31, 2016, the end of its fiscal year.
|
Dec. |
31 |
Merchandize Inventory |
6,000 |
||
|
Sales |
31,000 |
||||
|
Purchase returns and Allowances |
575 |
||||
|
Purchase discounts |
225 |
||||
|
Income Summary |
37,800 |
||||
|
Income Summary |
32,800 |
||||
|
Merchandize Inventory |
4,000 |
||||
|
Sales Returns and Allowances |
690 |
||||
|
Sales Discounts |
310 |
||||
|
Purchases |
22,500 |
||||
|
Transportation-In |
300 |
||||
|
Salaries Expenses |
5,000 |
||||
|
Income Summary |
5,000 |
||||
|
Retained Earnings |
5,000 |
||||
Required:
- Post the closing entries to general ledger T-accounts and calculate balances.
- Prepare a classified, partial income statement, showing sales, cost of goods sold calculations, and gross profit.
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