Comprehensive Problem 5 Debit Credit Journalize the December transactions using

Question

Comprehensive Problem 5

Debit

Credit

Journalize the December transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

b) Enter the December 1 balances in the ledger T-accounts and post the December transactions. (Post entries in the order of journal entries presented above.)

c) Adjustment data:

Journalize adjusting entries.

d) Post adjusting entries. (Post entries in the order of journal entries presented above.)

e) Prepare an adjusted trial balance.

f) Prepare an income statement.

g) Prepare an owner’s equity statement for December.

h) Prepare a classified balance sheet at December 31. (List Current Assets in order of liquidity.)

i) Liabilities and Owner’s Equity

Comprehensive Problem 5

On December 1, 2017, Rodriguez Distributing Company had the following account balances.

Debit

Credit

Cash $7,500 Accumulated Depreciation—Equipment $2,640 Accounts Receivable 4,900 Accounts Payable 4,500 Inventory 12,200 Salaries and Wages Payable 1,000 Supplies 1,300 Owner’s Capital 44,160 Equipment 26,400 $52,300 $52,300
During December, the company completed the following summary transactions.
Dec. 6 Paid $1,800 for salaries and wages due employees, of which $800 is for December and $1,000 is for November salaries and wages payable. 8 Received $1,900 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6,500. The cost of the merchandise sold was $3,900. 13 Purchased merchandise on account from Boehm Co. $9,000, terms 2/10, n/30. 15 Purchased supplies for cash $1,600. 18 Sold merchandise on account $12,800, terms 3/10, n/30. The cost of the merchandise sold was $8,300. 20 Paid salaries and wages $1,700. 23 Paid Boehm Co. in full, less discount. 27 Received collections in full, less discounts, from customers billed on December 18.

Explanation / Answer

a)

c)

b) & d)

e)

Per Chegg guidelines, 4 sub-parts answered.

Date General Journal Debit Credit Dec. 6 Salaries and wages payable 1000 Salaries and wages expense 800 Cash 1800 (To record salaries and wages paid) Dec. 8 Cash 1900 Accounts receivable 1900 (To record collection on account) Dec. 10 Cash 6500 Sales revenue 6500 (To record cash sales) Dec. 10 Cost of goods sold 3900 Inventory 3900 (To record cost of goods sold) Dec. 13 Inventory 9000 Accounts payable 9000 (To record inventory purchased on account) Dec. 15 Supplies 1600 Cash 1600 (To record supplies purchased) Dec. 18 Accounts receivable 12800 Sales revenue 12800 (To record sales on account) Dec. 18 Cost of goods sold 8300 Inventory 8300 (To record cost of goods sold) Dec. 20 Salaries and wages expense 1700 Cash 1700 (To record salaries and wages paid) Dec. 23 Accounts payable 9000 Inventory ($9000 x 2%) 180 Cash 8820 (To record payment on account) Dec. 27 Cash 12416 Sales discounts ($12800 x 3%) 384 Accounts receivable 12800 (To record collection on account)

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