Selected balance sheet information for the Wolf Company at November 30, and Dece

Question

Selected balance sheet information for the Wolf Company at November 30, and December 31, 2018, is presented below. The company uses the perpetual inventory system and all sales to customers are made on credit. Nov. 30 Debits Credits Dec. 31 Debits Credits Accounts receivable Prepaid insurance Inventory Accounts payable Salaries and wages payable 10,100 5,100 7,100 3,100 7,600 6,100 12,100 5,100 15,100 3,100 The following cash flow information also is available a. Cash collected from credit customers, $81,000 b. Cash paid for insurance, $5,100 c. Cash paid to suppliers of inventory, $61,000 (the entire accounts payable amounts relate to inventory purchases) d. Cash paid to employees for salaries and wages, $10,100 Requirec 1. Determine the following for the month of December: 2. Prepare summary journal entries to record the month's sales and cost of those sales Complete this question by entering your answers in the tabs below Required 1Required 2 Determine the following for the month of December: a. Sales revenue b. Cost of goods sold c. Insurance expense d. Salaries and wages expense Required1 Required 2>

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Ending Accounts receivable               3,100.00 Add cash collected from customers            81,000.00 Total amount to be collected            84,100.00 Less beginning Account receivable          (10,100.00) Credit sales            74,000.00 b) Beginning Prepaid Insurance               5,100.00 Cash paid for insurance               5,100.00 Total Prepaid Insurance            10,200.00 Less Ending prepaid insurance               7,600.00 Insruance expense               2,600.00 c) Ending Accounts payable            15,100.00 Add cash paid            61,000.00 Less Beginning AP            12,100.00 Inventory purchased            64,000.00 Beginning inventory               7,100.00 Inventory purchased            64,000.00 Less ending inventory            (6,100.00) Cost of goods sold            65,000.00 d) Ending salaries and wages payable               3,100.00 Add cash paid to employees            10,100.00 Total salaries and wages            13,200.00 less beginning salaries and wages payable               5,100.00 Salaries expense = 13200 - 5100               8,100.00 Particulars Dr Cr Accounts receivable Dr            74,000.00 To Sales           74,000.00 Cost of goods sold Dr            65,000.00 To Inventory           65,000.00

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