CP5 On December 1, 2012, Shiras Distributing
Company had the following account balances.
Comprehensive problem
8 Received $1,900 cash from customers in payment of account (no discount allowed).
10 Sold merchandise for cash $6,300. The cost of the merchandise sold was $4,100.
13 Purchased merchandise on account from Gong Co. $9,000, terms 2/10, n/30.
15 Purchased supplies for cash $2,000.
18 Sold merchandise on account $12,000, terms 3/10, n/30. The cost of the merchandise sold was $8,000.
20 Paid salaries $1,800.
23 Paid Gong Co. in full, less discount.
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 $1,500.
4. Income tax due and unpaid at December 31 is $200.
Instructions
(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 transactions. Use Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Sales Revenue, Sales Discounts, Supplies Expense, Income Tax Expense, and Income Taxes Payable.
File name: CP5 Shiras Distributing.xls File type: xls PRICE: $15
Debits Credits
Cash $7,200
Accumulated
Depreciation—
Equipment $
2,200 Accounts
Receivable 4,600
Inventory 12,000
Accounts Payable 4,500
Supplies 1,200
Salaries and Wages Payable 1,000
Equipment 22,000
Common Stock 15,000
Retained
Earnings 24,300
$47,000 47,000
During December, the company completed the
following summary transactions.
Dec. 6 Paid $1,600 for salaries due employees, of
which $600 is for December and $1,000 is for November salaries payable.8 Received $1,900 cash from customers in payment of account (no discount allowed).
10 Sold merchandise for cash $6,300. The cost of the merchandise sold was $4,100.
13 Purchased merchandise on account from Gong Co. $9,000, terms 2/10, n/30.
15 Purchased supplies for cash $2,000.
18 Sold merchandise on account $12,000, terms 3/10, n/30. The cost of the merchandise sold was $8,000.
20 Paid salaries $1,800.
23 Paid Gong Co. in full, less discount.
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 $1,500.
4. Income tax due and unpaid at December 31 is $200.
Instructions
(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 transactions. Use Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Sales Revenue, 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
earnings statement for December and a classified balance sheet at December 31.
(d) Totals $65,500
(e) Net income $540
TUTORIAL
PREVIEW
(a) Journalize the December transactions using a
perpetual inventory system.
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(a)
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Journal entries
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Date
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Account
Title
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Debit
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Credit
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Dec. 6
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Salaries and
Wages Payable
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1,000
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|
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Salaries and
Wages Expense
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600
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|
|
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Cash
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1,600
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8
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Cash
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1,900
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|
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Accounts Receivable
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1,900
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|
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10
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Cash
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6,300
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|
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Sales Revenue
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6,300
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|
|
|
|
|
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Cost of
Goods Sold
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4,100
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|
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Inventory
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4,100
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