On December 1, 2010, Sleezer Distributing Company had the following account balances.

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 $1,800 cash from customers in payment of account (no discount allowed).
10 Sold merchandise for cash $6,000. The cost of the merchandise sold was $4,000.
13 Purchased merchandise on account from Helm Co. $9,000, terms 2/10, n/30.
15 Purchased supplies for cash $2,000.
18 Sold merchandise on account $12,000, terms 1/10, n/30. The cost of the merchandise sold was $8,000.
20 Paid salaries $1,800.
23 Paid Helm Co. in full, less discount.
27 Received collections in full, less discounts, from customers billed on December 18.
Adjustment data:
1. Accrued salaries payable $600.
2. Depreciation $300 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.
(b) Enter the December 1 balances in the ledger T accounts and post the December transactions. Use Cost of Goods Sold, Depreciation Expense, Salaries Expense, Sales, Sales Discounts, Supplies Expense, Income Tax Expense, and Income Tax 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 December31.

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Cash Accounts Receivable Merchandise Inventory Supplies Debits 7,300 5,600 12,000 1,200 22,000 $48,100 Credits Accumulated Depreciation 2,200 4,600 1,000 15,000 25,300 $48,100 Accounts Payable Salaries Payable Common stock Retained Earnings uipment