September 2023 In Module 01 you prepared a few of the regular monthly entries for Ed Now Big Ed s Motorcycle Shop

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In Module 01 you prepared a few of the regular monthly entries for Ed Now Big Ed s Motorcycle Shop 2023

In Module 01, you prepared a few of the regular monthly entries for Ed. Now, Big Ed’s Motorcycle Shop is nearing the fiscal year-end. You have been asked to prepare the adjusting and closing entries to prepare the accounting records for year-end. use attachedment for Big Ed’s trial balance to begin preparing your adjusting and closing entries: Following is the information you will need to make your adjusting entries: Office equipment has a life of five years with no residual value. Store equipment has a life of five years with no residual value. Shop equipment has a life of ten years with no residual value (assume new equipment was purchased Jan. 1. ) A physical inventory of Merchandise Inventory, Parts revealed an actual balance of $97,000. A physical inventory of Merchandise Inventory, Motorcycles revealed that the balance was accurate. Office supplies in the amount of $1,500 were used throughout the year. Salaries should be accrued as follows: Sales – $3,000 Service – $5,000 Office – $1,500 Insurance in the amount of $1,200 was used throughout the year. Interest on the Note Payable is 8% (assume new note was taken out on Jan. 1. ) Once you have completed the adjusting entries, prepare your closing entries.

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