Question: Completing a Merchandiser's Accounting Cycle St. John Technology uses a perpetual inventory system. The end-of-month unadjusted trial balance of St. John Technology at January 31, 2016, follows:
Additional data at January 31, 2016:
Requirements: 1. Using T-accounts, open the accounts listed on the trial balance, inserting their unadjusted balances. Label the balances as Bal. Also open the Income Summary account.
2. Journalize and post the adjusting entries at January 31. Compute the ending balances in the T-accounts, and denote as Bal.
3. Enter the unadjusted trial balance on a worksheet, and complete the worksheet for the month ended January 31, 2016. St. John Technology groups all operating expenses under two accounts, Selling Expense and Administrative Expense. Leave two blank lines under Selling Expense and three blank lines under Administrative Expense.
4. Prepare the company's multi-step income statement and statement of retained earnings for the month ended January 31, 2016. Also prepare the balance sheet at that date in report form.
5. Journalize and post the closing entries at January 31.