Comprehensive Problem 6 On December 1, 2019, Blue Company had the account balanc

Question

Comprehensive Problem 6 On December 1, 2019, Blue Company had the account balances shown below. Debit Credit $1,300 2,800 22,000 7,515 $33,615 Cash $6,800 Accumulated Depreciation-Equipment Accounts Receivable 3,90 Accounts Payable Inventory Equipment 1,815 Common Stock 21,100 Retained Earnings 33,615 (3,300x $0.55) The following transactions occurred during December. Dec. 3 Purchased 4,500 units of inventory on account at a cost of $0.65 per unit. 5 Sold 5,000 units of inventory on account for $0.92 per unit. (Blue sold 3,300 of the $0.55 units and 1,700 of the $0.65.) Granted the December 5 customer $276 credit for 300 units of inventory returned costing $184. These units were returned to inventory. Purchased 2,100 units of inventory for cash at $0.80 each. 7 17 22 Sold 1,900 units of inventory on account for $0.96 per unit. (Blue sold 1,900 of the $0.65 units.) Adjustment data: 1. Accrued salaries payable $500. 2. Depreciation $200 per month. Journalize the December transactions and adjusting entries, assuming Blue uses the perpetual inventory method.(Credit account titles are Jourmal entries in the order presented in the oroblem.) automatical

Explanation / Answer

As per policy, only four parts of a question is allowed to answer at a time, so answering 1-4 :

1) Journal Entries: Date Accounts Titles Debit $ Credit $ 3-Dec Inventory 2925 AP 2925 (4500*0.65) 5-Dec AR 4600 Sales 4600 (5000*0.92) COGS 2920 Inventory 2920 (3300*0.55+1700*0.65) 7-Dec Sales Return 276 AR 276 Inventory 184 COGS 184 17-Dec Inventory 1680 cash 1680 (2100*0.80) 22-Dec AR 1824 Sales 1824 (1900*0.96) COGS 1235 Inventory 1235 (1900*0.65) Adjusting Entries: 1 Salary Expense 500 Salary payable 500 2 Dep. 200 Acc Dep - Equip 200 2) T-Accounts: Casha/c OB 6800 17-Dec 1680 CB 5120 Inventory A/c OB 1815 5-Dec 2920 3-Dec 2925 22 1235 7 184 CB 2449 17 1680 AP a/c OB 2800 CB 5725 3 2925 AR a/c OB 3900 7 276 5 4600 CB 10048 22 1824 Sales A/c: 5 4600 CB 6424 22 1824 COGS a/c: 5 2920 7 184 22 1235 CB 3971 Sales return & Allow A/c: 7 276 3) Income Statement: Sales 6424 Less: Sales return 276 Net Sales 6148 Less:COGS 3971 Gross profit 2177 Less: Exp.: Salary 500 Dep. 200 Total exp. 700 Net Income 1477 4) Balance Sheet: Assets: Amount$ Cash 5120 AR 10048 Inventory 2449 Equipment 21100 Total Assets 38717 Liabilities: Acc Dep - Eq. 1500 Salary payable 500 AP 5725 CS 22000 Retained Earnings (7515+1477) 8992 Total Liabilities: 38717

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