9781118875056

On December 1, 2017, Rodriguez Distributing Company had the following account balances.

Debit

Cash $ 7,200 Accounts Receivable 4,600 Inventory 12,000AccountsPayable 4,500 Supplies 1,200 Salaries and Wages Payable 1,000 Equipment 22,000OwnersCapital 39,300

$47,000 $47,000 During December, the company completed the following summary transactions.

Credit

Accumulated Depreciation Equipment $ 2,200

Dec. 6

8 10 13 15 18

20 23 27

Paid $1,600 for salaries and wages due employees, of which $600 is for December and $1,000 is for November salaries and wages payable. Received $2,200 cash from customers in payment of account (no discount allowed). Sold merchandise for cash $6,300. The cost of the merchandise sold was $4,100. Purchased merchandise on account from Boehm Co. $9,000, terms 2/10, n/30. Purchased supplies for cash $2,000.

Sold merchandise on account $15,000, terms 3/10, n/30. The cost of the merchandise sold was $10,000. Paid salaries and wages $1,800. Paid Boehm Co. in full, less discount.

Received collections in full, less discounts, from customers billed on December 18.

Adjustment data:

1. Accrued salaries and wages payable $840. 2. Depreciation $200 per month. 3. Supplies on hand $1,500.

Instructions

1. (a) Journalize the December transactions using a perpetual inventory system.
2. (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, and Supplies Expense.
3. (c) Journalize and post adjusting entries.
4. (d) Prepare an adjusted trial balance.
5. (e)PrepareanincomestatementandanownersequitystatementforDecemberandaclassiedbalancesheetatDecember31.

9781118875056

(d) Totals (e) Net income $1,610