save mart was a retail store its account balances on february 28 the end of its fisc 4373960

Save-Mart was a retail store. Its account balances on February 28 (the end of its fiscal year), before adjustments, were as shown below. The data for the adjustments are 1. Cost of merchandise sold, $604,783. 2. Store equipment had a useful life of seven years. (All equipment was less than seven years old.) 3. Supplies inventory, February 28, $3,877. (Purchases of supplies during the year were debited to the Supplies Inventory account.) 4. Expired insurance, $7,125. 5. The note payable was at an interest rate of 9 percent, payable monthly. It had been outstanding throughout the year. 6. Sales salaries earned but not paid to employees, $2,340. 7. The statement sent by the bank, adjusted for checks outstanding, showed a balance of $88,110. The difference represented bank service charges. Questions 1. Set up T accounts with the balances given above. 2. Journalize and post adjusting entries, adding other T accounts as necessary. 3. Journalize and post closing entries. 4. Prepare an income statement for the year and a balance sheet as of February 28. View Solution:
Save Mart was a retail store Its account balances on February

"Looking for a Similar yet Original Assignment? Order now and Get a Discount!

Get better grades effortlessly,
It’s cheaper than you might think

Effortlessly get the essays and grades you need. You can now get any essay, on any subject and at ANY deadline with just 10 minutes of your time (or less). Your professor will love you for it!