Biology Forums - Study Force

Following is a random list of some of the accounts and their balances on December 31, 2013, for Copperfield Merchandising. Copperfield uses a perpetual inventory system and all account balances are normal.

   Inventory   $ 67,000
   Sales revenue   470,000
   Interest revenue   28,000
   Salary expense   46,000
   Sales returns & allowances   30,000
   Interest expense   13,000
   Delivery expense   15,000
   Sales discounts   25,000
   Insurance expense   8,000
   P.Copperfield, Capital   50,000
   Utilities expense   29,000
   Amortization expense   20,000
   P Copperfield, Withdrawals   25,000
   Cost of goods sold   259,000
   Accounts payable   56,000
   Accounts receivable   78,000
   Cash   29,000

A physical count on December 31, 2013, reveals $65,000 of inventory on hand.

a) Prepare the entry to adjust the inventory account on December 31, 2013.
b) Prepare the closing entries on December 31, 2013.

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