Secure | https: Comprehensive Problem 8 On December 1, 2017, Fullerton Company h

Question

Secure | https: Comprehensive Problem 8 On December 1, 2017, Fullerton Company had the following account balances Notes Receivable Accounts Receivable 7400 Owner's Capital 6,100 4,500 ?? 2,000 Accounts Payable 17,000 1,700 27,600 Prepaid Insurance During December, the company completed the folowing transactions Dec. 7 Received $3,500 cash from customers in payment of account (no discount allowed) 12 Purchased merchandise on account from Vance Co. $12.400, terms 1/10, n/3 17 Sold merchandise on account S 15.000, terms 2/10. n/30?Tho (ost of the merchandise sold was s9.800. 19 Paid salaries 2,100 22 Paid Vance Co. in fuil, less discount 26 Recelved collections in ful, less discounts, frem oustomers biled on December 17 1 Received $2,600 cash from customers in payment of account (no discount allowed) Adjustment data: I. Depreciation $200 per month 2. Insurance expired $400. Journalize the December transactions. (Assume a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manualy.) Date Account Titles and Explanation Recelvable

Explanation / Answer

Solution 1a:

Solution 1b:

Journal Entries - Fullerton Company Date Particulars Debit Credit 7-Dec Cash Dr $3,500.00       To Accounts receivables $3,500.00 (To record cash received from customer) 12-Dec Inventory Dr $12,400.00       To Accounts Payable $12,400.00 (To record purchase of merchandise) 17-Dec Accounts receivables Dr $15,000.00       To Sales Revenue $15,000.00 (To record sales) 17-Dec Cost of goods sold Dr $9,800.00       To Inventory $9,800.00 (To record cost of goods sold) 19-Dec Salaries and Wages expense Dr $2,100.00       To Cash $2,100.00 (To record salary paid) 22-Dec Accounts payable Dr $12,400.00       To Cash $12,276.00       To Purchase discount $124.00 (To record payment of to supplier) 26-Dec Cash Dr $14,700.00 Sales Discount Dr $300.00       To Accounts receivables $15,000.00 (To record collection from customer) 31-Dec Cash Dr $2,600.00       To Accounts receivables $2,600.00 (To record cash received from customer) 31-Dec Depreciation expense Dr $200.00       To Accumulated depreciation - Equipment $200.00 (To record depreciation for the month) 31-Dec Insurance expense Dr $400.00       To Prepaid insurance $400.00 (To record insurance expense)

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