Selected balance sheet information for the Wolf Company at November 30, and December 31, 2018, is presented below. The company uses the perpetual inventory system and all sales to customers are made on credit.

The following cash flow information also is available:
a. Cash collected from credit customers, $80,000
b. Cash paid for insurance, $5,000
c. Cash paid to suppliers of inventory, $60,000 (the entire accounts payable amounts relate to inventory purchases)
d. Cash paid to employees for salaries and wages, $10,000
Required:
1. Determine the following for the month of December:
a. Sales revenue
b. Cost of goods sold
c. Insurance expense
d. Salaries and wages expense
2. Prepare summary journal entries to record the month's sales and cost of those sales.

Transcribed Image Text:

Nov. 30 Dec. 31 Debits Credits Debits Credits Accounts receivable Prepaid insurance Inventory Accounts payable Salaries and wages payable 10,000 5,000 7,000 3,000 7,500 6,000 12,000 5,000 15,000 3,000