The exercises of the goods (inventory)

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Exercise number 1
If you know that the trial balance of Al-Wafaa Company was as follows on 12/31/2015:

Required: At the time of the inventory on 12/31/2015, the goods at the end of the period were worth $5,000:
Preparing financial statements
Registration of lock restrictions
Solution method:
First: preparing the income statement:
 

Second: Closing the accounts on the income statement:
In the account closing lesson, we explained the method of closing the revenue and expense account in service establishments, and the accounts in commercial companies are closed in the same way by closing the sales account and the accounts for purchase costs, expenses, revenues, and other expenses in the profit and loss account (income summary) as follows:
1 Closing accounts for purchases, expenses and other debit balances:
The accounts of purchases, expenses and other debit balances are closed in the profit and loss account (income summary) by making them credit as follows:
Recording closing expenses and other debit balances
Revenue closing entry:
2 Close the sales account and other credit balances:
Sales and other credit balances are closed in the profit and loss account (income summary) by making them debit as follows:
 

3 Closing the merchandise account at the beginning of the period and confirming the merchandise account at the end of the period
Debtor creditor statement
10950
From H/Profit and Loss (income summary)
10950 to h / goods at the beginning of the period

Closing the merchandise account at the beginning of the period
Debtor creditor statement
5000
From h / merchandise at the end of the period
5000 to h/profit and loss (income summary)

Proof of the goods account at the end of the period
After the inventory of the goods at the end of the period is recorded and the entry of evidence is recorded for them, the goods at the end of the period will appear in the list of financial position on the side of the current assets, as you will see it when preparing the list.
4 Closing the profit and loss account (income summary):
After that, the profit and loss account (income summary) is closed in one of the property rights accounts, that is, in the capital account or the current account of the owner of the company, or in the retained profits and losses account as follows:
Debtor creditor statement
20,357,500
From H/Profit and Loss (income summary)
20357.500 to H/Neighbour, owner of the facility, capital, or account of A.K. withheld

Closing the income summary account in the account of the owner of the company or the capital account or the account of A.K. is held
Third: Preparing the statement of financial position:
Statement of financial position on 31/12/2015
Statement of financial position on 31/12/2015
Total amount Partial amount statement

assets

Assets
5000 fund
10357.500 Bank
19,000 debtors
5000 goods at the end of the period
39,357,500
Total current assets

Fixed assets
5000 net furniture
5000 pcs net
10,000
Total fixed assets

Other debit balances
49,357,500
Total assets

Obligations and property rights

short term liabilities
19,000 creditors
19,000
Total short-term liabilities

Other credit balances

Property rights
10,000 capital
20,357,500 net profits
30,357,500
net equity
49,357,500
The sum of liabilities and equity


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