The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020.

Question:

The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020.

image

The following transactions occurred during January 2021:Jan. 1 Sold merchandise for cash, $3,500. The cost of the merchandise was $2,000. The company uses the perpetual inventory system.2 Purchased equipment on account for $5,500 from the Strong Company.4 Received a $150 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2.8 Sold merchandise on account for $5,000. The cost of the merchandise was $2,800.10 Purchased merchandise on account for $9,500.13 Purchased equipment for cash, $800.16 Paid the entire amount due to the Strong Company.18 Received $4,000 from customers on account.20 Paid $800 to the owner of the building for January?s rent.30 Paid employees $3,000 for salaries for the month of January.31 Paid a cash dividend of $1,000 to shareholders.

Required:1. Set up T-accounts and enter the beginning balances as of January 1, 2021.2. Prepare general journal entries to record each transaction. Omit explanations.3. Post the entries to T-accounts.4. Prepare an unadjusted trial balance as of January 31, 2021.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

Question Posted: