Following Is a Random List of Some of the Accounts

question 101

Essay

Following is a random list of some of the accounts and their December 31, 2019, balances for Carmen & Company. Carmen & Company uses a periodic inventory system and all account balances are normal. $$\begin{array} { l r } \text { Purchases } & \$ 320,000 \\\text { Sales revenue } & 460,000 \\\text { Interest revenue } & 23,000 \\\text { Salary expense } & 45,000 \\\text { Freight in } & 17,000 \\\text { Purchase discounts } & 31,000 \\\text { Sales returns and allowances } & 35,000 \\\text { Interest expense } & 18,000 \\\text { Delivery expense } & 24,000 \\\text { Sales discounts } & 27,000 \\\text { Insurance expense } & 16,000 \\\text { Purchase returns and allowances } & 46,000 \\\text { B.J. Carmen, Capital } & 30,000 \\\text { Utilities expense } & 14,000 \\\text { Amortization expense-equipment } & 10,000 \\\text { B.J. Carmen, Withdrawals } & 15,000\end{array}$$ The beginning and ending amounts for inventory are $58,000 and $65,000, respectively.
Prepare the closing entries for Carmen & Company.

---

Definitions:

Subsequent Measurement

Refers to the accounting processes involved in measuring the value of financial assets and liabilities after their initial recognition.

Foreign Currency Transactions

Transactions that involve the exchange of one currency for another, often occurring in businesses that engage in international operations.

Foreign Exchange Differences

The discrepancies arising when converting foreign currency transactions to a company's functional currency, due to changes in exchange rates.

Reporting Period

A reporting period is the span of time covered by a set of financial statements or reports, typically a quarter or a year.