ABC Company Page 1 Note: There is no correlation between the placement of the financial transactions listed below and their placement in the journal. General Journal Date Description P.R. Debit Credit During the last month of the year, the following transactions were completed: Pald rent for December, $8,000 Dec 1 Dec 3 Purchased merchandise from Goat Company for $7,000 under terms 1/15, n/30, FOB Shipping Point Dec 4 Paid $400 cash for freight charges on purchase of Dec 3. Dec 5 Sold merchandise to Beaver company for $21,100 under credit terms 2/10, n/60, FOB Shipping Point. The merchandise had a cost of $8,800. Dec 6 Purchased merchandise from Duck Company for $27,500, under terms nleom (notot end of month). Dec 8 Received $23,000 on account from Warthog Company, no discount. This sale was made in November Dec 9 After negotiations with Goat Company concerning problems with the merchandise purchased on Dec 3, ABC Company received a credit credit memorandum from Goat Company granting an allowance of $1,000. Dec 10 Paid part-time sales clerk $3,000 which included $2,000 of Sale Salaries Payable on December 1st. (Hint: This entry will require three lines.) Dec 11 Sold merchandise on account to Cow company, terms 2/10, n/60, FOB destination, $22,000. The merchandise had a cost of $10,000. Dec 12 Paid $350 cash for shipping charges related to the Dec 11 sale to Cow Company. Dec 13 Paid the amount due to Goat Company for the Dec 3 purchase less the allowance granted on Dec 9. Dec 15 Received balance due from Beaver Company for merchandise sold on Dec 5. Dec 16 Cow company returned merchandise from the Dec 11 sale that had cost ABC Company $1,000 and been sold for $5,500. The merchandise was restored to inventory. Dec 21 Received amount due from Cow company for the Dec 11 sale less the sale return on Dec 16. Dec 23 Paid advertising expense for ads running the last week of December, $800. Dec 24 Paid part-time sales clerk for two weeks' salary, $3,000. Dec 27 Purchased office supplies on account, $500. Dec 31 Paid Duck Company amount due from the Dec 6 purchase. At the end of December, the following adjustment data were assembled. a After a physical count of inventory, it was determined that $127,200 of inventory exists at December 31. b 1% of sales is expected to be refunded. C Estimated Cost of Merchandise that will be returned in the next year is $5,500 d Insurance Expired during the year, $2,200. e Office supplies on hand at Dec 31, $1,250. f Depreciation for December is $1,400. g Sales clerk earned $1,500 of unpaid and unrecorded salary as of Dec 31. ABC Company Unadjusted Trial Balance December 31, 20xx Credit Debit 60,678 1,000 30,000 51,830 129,840 1,000 8,740 1,750 60,150 22,950 64,600 0 3,610 193,870 Cash Petty Cash Notes Receivable Accounts Receivable Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Office Supplies Delivery Equipment Accumulated Depreciation-Delivery Equipment Accounts Payable Salaries Payable Customer Refunds Payable R.W. Miller, Capital R.W. Miller, Drawing Sales Interest Revenue Cost of Merchandise Sold Sales Salaries Expense Rent Expense Delivery Expense Deprecation Expense-Delivery Equipment Advertising Expense Miscellaneous Selling Expense Office Salaries Expense Insurance Expense Office Supplies Expense Miscellaneous Administrative Expense Interest Expense 30,000 1,058,938 1,650 657,870 92,330 63,000 39,110 7,630 12,830 5,090 52,300 15,280 8,700 14,490 2,000 1,345,618 Total 1,345,618 ABC Company Adjusted Trial Balance December 31, 20xx Debit Credit 60,678 1,000 30,000 51,830 127,200 6,500 6,540 1,250 60,150 24,350 64,600 1,500 14,199 193,870 Cash Petty Cash Notes Receivable Accounts Receivable Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Office Supplies Delivery Equipment Accumulated Depreciation-Delivery Equipment Accounts Payable Salaries Payable Customer Refunds Payable R.W. Miller, Capital R.W. Miller, Drawing Sales Interest Revenue Cost of Merchandise Sold * Sales Salaries Expense Rent Expense * Delivery Expense * Deprecation Expense-Delivery Equipment * Advertising Expense Miscellaneous Selling Expense # Office Salaries Expense # Insurance Expense # Office Supplies Expense # Miscellaneous Administrative Expense Interest Expense 30,000 1,048,349 1,650 * * 655,010 93,830 63,000 39,110 9,030 12,830 5,090 52,300 17,480 9,200 14,490 2,000 1,348,518 Total 1,348,518 Financial Statements Note: See Chapter 6 (Exhibits 11,12,14) for proper formatting DO NOT MODIFY FORMATTING (Multi-Step Income Statement and Report Form Balance Sheet) ABC Company ABC Company Balance Sheet Income Statement Assets Tips: Assets - Liables Owner's Equity Al Account balances will be reflected on the Anancial Statements Ensure you reported the correct balances from the Adjusted Trial Balance Al Financial Statements require a date. ABC Company Statement of Owner's Equity