An Adjusted Trial Balance for a Merchandiser Is Given Below

question 146

Essay

An adjusted trial balance for a merchandiser is given below.
$\begin{array}{|l|c|l|}\hline&\text { Debit } & \text { Credit }\\ \hline\text { Cash } & \$ 12,600 \\\hline \text { Accounts Receivable } & 2,400 \\\hline \text { Prepaid Rent } & 800 \\\hline \text { Merchandise Inventory } & 30,000\\\hline \text { Accounts Payable } & & \$ 4,200 \\\hline \text { Salaries Payable } & & 1,000 \\\hline \text { Notes Payable } & & 800\\\hline \text { Common Stock } & & 10,000 \\\hline \text { Retained Earnings } & & 3,800 \\\hline \text { Dividends } & 1,000 & \\\hline \text { Sales Revenue } & & 96,000 \\\hline \begin{array}{l}\text { Sales Returns and } \\\text { Allowances }\end{array} & 1,600 &\\\hline \text { Sales Discounts } & 400 \\\hline \text { Cost of Goods Sold } & 23,000 \\\hline \text { Salaries Expense } & 21,000 \\\hline \text { Rent Expense } & 14,000 \\\hline \text { Selling Expense } & 8,500 \\\hline \text { Supplies Expense } & 500 \\\hline\text { Total }&\$115,800&\$115,800\\\hline\end{array}$
- Give the journal entry to close the Sales Revenue account.

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Definitions:

Labor Standards

Standards specifying the amount of time needed to complete a specific task or produce a set quantity of products.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as salaries of managers and depreciation of factory equipment.

Standard Machine-Hours

The predetermined amount of machine time estimated or allocated for the production of a unit or batch of products, used for costing and efficiency measurements.

Variable Overhead Rate

The ratio of variable overhead costs to a related activity driver, often used in cost accounting.