DUUR URION Downloadable eTextbook nent CALCULATOR FULL SCREE Comprehensive Accou

Question

DUUR URION Downloadable eTextbook nent CALCULATOR FULL SCREE Comprehensive Accounting Cycle Review 6 On December 1, 2017, Sheffield Corp, had the account balances shown below. Debits Cash Accounts Receivable Inventory (3,200 x $0.60) Equipment Credits $4,390 Accumulated Depreciation-Equipment $1,400 2,940 9,400 18,730 $32,470 3,560 Accounts Payable 1,920 22,600 Retained Earnings Common Stock $32,470 The following transactions occurred during December. Dec. 3 Purchased 4,200 units of inventory on account at a cost of $0.76 per unit. 5 Sold 4,600 units of inventory on account for $0.90 per unit. (It sold 3,200 of the $0.60 units and 1,400 of the so.76.) 7 Granted the December 5 customer $180 credit for 200 units of inventory returned costing $150. These units were returned to inventory. 17 Purchased 2,200 units of inventory for cash at $0.80 each. 22 Sold 2,000 units of inventory on account for $0.99 per unit. (It sold 2,000 of the $0.76 units.) Adjustment data: 1. Accrued salaries and wages payable $330. 2. Depreciation on equipment $190 per month. 3. Income tax expense was $230, to be paid next year.

Explanation / Answer

Trial Balance For the Period Ended Dec 31, 2017 Particulars Dr. Amt. Cr. Amt. Cash            2,630 Accounts Receivable            9,500 Inventory            2,518 Equipment          22,600 Accumulated Dep. - Equipment            1,590 Accounts Payable            6,132 Salaries & Wages Payable                330 Income Tax Payable                230 Common Stock            9,400 Retained Earnings          18,730 Sales            6,120 Sales Return & Allowances                180 Cost of Goods Sold            4,354 Salaries & Wages Expenses                330 Depreciation Expenses                190 Income Tax Expenses                230 Total          42,532          42,532                   -   Sheffield Corp. Income Statement For the Month Ended Dec 31, 2017 Sales Revenue Sales            6,120 Less: Sales Return & Allowances                180 Net Sales            5,940 Less: Cost of Goods Sold            4,354 Gross Margin            1,586 Less: Operating Expenses Salaries & Wages Expenses                190 Depreciation Expenses                230                420 Net Operating Income            1,166 Other Income & Losses Interest Expenses                   -   Net Income before Tax            1,166 Less: Income Tax Expenses                230 Net Income                936

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