Adjusting Journal Entries
hi i need help on these journal entries for dec 31, 2011 for LBI:
on december 23, 2011, LBI shipped a truckload of sofas and loveseats to Fulmore Fine Furniture Ltd (FFF) at a total sales price of $16,450, terms 2/10 net 30, FOB shipping point. LBI's former accounts receivable clerk recorded the sale on january 6, 2012, the date that the goods arrived at FFF's warehouse.
the inventory count at december 31, 2011 showed the following items were on hand: 450 sofas at a cost of $320 each, 575 loveseats at a cost of $270 each, and 1,100 chairs at a cost of $105 each. All purchases and sales of goods during the year were correctly recorded. derek would like you to calculate the total inventory from the count and make an adjustment to inventory to reflect this amount. Ignore the inventory related to the sale in note 1 as it was recorded appropriately.
LBI is open five days a week, closed on weekends, and employees are paid a total of $10,400 per week every wecond tuesday for the preious two work weeks. december 31, 2011 is a sunday so employees' final payroll for fiscal 2011 was paid on january 3, 2012. In addition to the regular payroll, derek estimates that the sales bonuses of $22,000 for the fiscal year 2011 will be paid on January 17, 2012
i'm thinking note 5 doesn't need an entry because they will be getting paid on january 2012 which doesn't count in the december 31, 2011 closing entries, but i'm not sure. if anyone can help with the adjusting journal entries, i'd appreciate it a lot. Thanks!!
Re: Adjusting Journal Entries
i think i got notes 2 and 3, which would be
Inventory - $414,750
Cost of Goods Sold - $414,750
from counting up all the inventory in the question
salaries expense - $20,800
salaries payable - $20,800
from $22,000x 8/10 of the days
But i'm not sure how to get note 1 since the sales were recorded later?