Chapter 7
Inventory: Merchandising Transactions
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d) Prepare the statement of owner’s equity for George’s Gardening Supplies for the year ended
December 31, 2016. George invested an additional $10,000 during the year.
e) Prepare the classified balance sheet for George’s Gardening Supplies at December 31, 2016.
f ) Journalize the closing entries for George’s Gardening Supplies for 2016 using the income
summary method.
See Appendix I for solutions.
a) Prepare a single-step income statement
