Debit: Cash $7200 Accounts Receivable 4600 Inventory 12000 Supplies 1200 Equipme
ID: 2381010 • Letter: D
Question
Debit: Cash $7200
Accounts Receivable 4600
Inventory 12000
Supplies 1200
Equipment 22000
Total 47000
Credit:Accumulated Depreciation-Equipment
2200Accounts payable 4500
Salaries and Wages Payable 1000
Common Stock 15000
Retained Earnings 24300
Total 47000
During December, the company completed the following summary transaction
Dec. 6 Paid $1600 for salaries due emplyees of which $600 is for decmeber and $1000 is for November salaries payable.
Dec. 8 Received $1900 cash from customers in payment of account(no discount allowed)
Dec. 10 Sold merchandise for cash $6300. The cost of the merchandise sold was $4100
Dec. 13 Purchased merchandise on account from Gong Co. $9000 terns 2/10, n/30.
Dec. 15 Purchased supplies for cash $2000
Dec. 18 Sold merchandise on account $12000 terms 3/10, n/30. The cost of the merchandise sold was $8000.
Dec. 20 Paid salaries $1800
.Dec. 23 Paid Gong. Co in full, less discount.
Dec. 27 Received collections in full, less discounts, from customers billed on December 18
.Adjustment data:
1. Accrued salaries payable $800
2. Depreciation $200 per month.
3. Supplies on hand $1500
4. Income tax due and unpaid at December 31 is $200
(a.) journalize the december transactions using a perpetual inventory system.
(b.) enter the december 1 balances in the ledger T accounts and post the December actions. Use Cost of goods sold, Depreciation Expense, Salaries and Wages Expense, Sales Revenues, Sales Discounts, Supplies Expense, Income Tax Expense, and Income Taxes Payable.
(c.) Journalize and post adjusting entries.
(d.) Prepare an adjusted trial balance.
(e.) Prepare an income statement and a retained earning statemnt for December and a classified balance sheet at December 31.
I need b, c , d and e
Explanation / Answer
(c) Journalize and post adjusting entries
1. Accrued salaries payable $800.
Dr Salaries Expense 800
Cr Salaries Payable 800
2. Depreciation $200 per month.
Dr Depreciation Expense - Equipment 200
Cr Accumulated Depreciation - Equipment 200
3. Supplies on hand $1,500.
1,200 + 2,000 - 1,500 = $1,700 supplies used
Dr Supplies Expense 1,700
Cr Supplies 1,700
4. Income tax due and unpaid at December 31 is $200.
Dr Income Tax Expense 200
Cr Income Tax Payable 200
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