Accounting Cycle Review 6 a- f On December 1, 2020, Bonita Company had the account balances shown below.

Debit Credit Cash $5,300 Accumulated DepreciationEquipment $1,300 Accounts Receivable 4,000 Accounts Payable 3,600 Inventory 2,760* Owners Capital 30,160 Equipment 23,000 $35,060 $35,060

*(4,600 x $0.60)

The following transactions occurred during December:

Dec. 3 Purchased 4,800 units of inventory on account at a cost of $0.74 per unit. 5 Sold 5,300 units of inventory on account for $0.90 per unit. (Bonita sold 4,600 of the $0.60 units and 700 of the $0.74.) 7 Granted the December 5 customer $150 credit for 200 units of inventory returned costing $100. These units were returned to inventory. 17 Purchased 2,300 units of inventory for cash at $0.80 each. 22 Sold 3,600 units of inventory on account for $0.95 per unit. (Bonita sold 3,600 of the $0.74 units.)

Adjustment data:

1. Accrued salaries payable $400. 2. Depreciation $400 per month.

Correct answer. Your answer is correct. Journalize the December transactions and adjusting entries, assuming Bonita uses the perpetual inventory method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date Account Titles and Explanation Debit Credit Entry field with correct answer Entry field with correct answer Inventory Entry field with correct answer 3552 Entry field with correct answer Entry field with correct answer Accounts Payable Entry field with correct answer Entry field with correct answer 3552 Entry field with correct answer Entry field with correct answer Accounts Receivable Entry field with correct answer 4770 Entry field with correct answer Entry field with correct answer Sales Revenue Entry field with correct answer Entry field with correct answer 4770 (To record sales revenue.) Entry field with correct answer Entry field with correct answer Cost of Goods Sold Entry field with correct answer 3278 Entry field with correct answer Entry field with correct answer Inventory Entry field with correct answer Entry field with correct answer 3278 (To record cost of goods sold.) Entry field with correct answer Entry field with correct answer Sales Returns and Allowances Entry field with correct answer 150 Entry field with correct answer Entry field with correct answer Accounts Receivable Entry field with correct answer Entry field with correct answer 150 (To record sales returns.) Entry field with correct answer Entry field with correct answer Inventory Entry field with correct answer 100 Entry field with correct answer Entry field with correct answer Cost of Goods Sold Entry field with correct answer Entry field with correct answer 100 (To record cost of sales returns.) Entry field with correct answer Entry field with correct answer Inventory Entry field with correct answer 1840 Entry field with correct answer Entry field with correct answer Cash Entry field with correct answer Entry field with correct answer 1840 Entry field with correct answer Entry field with correct answer Accounts Receivable Entry field with correct answer 3420 Entry field with correct answer Entry field with correct answer Sales Revenue Entry field with correct answer Entry field with correct answer 3420 (To record sales revenue.) Entry field with correct answer Entry field with correct answer Cost of Goods Sold Entry field with correct answer 2664 Entry field with correct answer Entry field with correct answer Inventory Entry field with correct answer Entry field with correct answer 2664 (To record cost of goods sold.) Entry field with correct answer Entry field with correct answer Salaries and Wages Expense Entry field with correct answer 400 Entry field with correct answer Entry field with correct answer Salaries and Wages Payable Entry field with correct answer Entry field with correct answer 400 (To record accrued expense.) Entry field with correct answer Entry field with correct answer Depreciation Expense Entry field with correct answer 400 Entry field with correct answer Entry field with correct answer Accumulated Depreciation-Equipment Entry field with correct answer Entry field with correct answer 400 (To record depreciation expense.)

Correct answer. Your answer is correct. Prepare a classified balance sheet at December 31, 2020. (List Current Assets in order of liquidity.)

BONITA COMPANY Balance Sheet Entry field with correct answer Assets Entry field with correct answer Entry field with correct answer Cash $Entry field with correct answer 3460 Entry field with correct answer Accounts Receivable Entry field with correct answer 12040 Entry field with correct answer Inventory Entry field with correct answer 2310 Entry field with correct answer $Entry field with correct answer 17810 Entry field with correct answer Entry field with correct answer Equipment Entry field with correct answer 23000 Entry field with correct answer: Entry field with correct answer Accumulated Depreciation-Equipment Entry field with correct answer 1700 Entry field with correct answer 21300 Entry field with correct answer $Entry field with correct answer 39110 Liabilities and Owners Equity Entry field with correct answer Entry field with correct answer Accounts Payable $Entry field with correct answer 7152 Entry field with correct answer Salaries and Wages Payable Entry field with correct answer 400 Entry field with correct answer $Entry field with correct answer 7552 Entry field with correct answer Entry field with correct answer Owner's Capital Entry field with correct answer 31558 Entry field with correct answer $Entry field with correct answer 39110

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Partially correct answer. Your answer is partially correct. Try again. (e)

Compute ending inventory and cost of goods sold under FIFO, assuming Bonita Company uses the periodic inventory system.

Ending Inventory $Entry field with incorrect answer 2100 Cost of Goods Sold $Entry field with incorrect answer 5842

(f)

Compute ending inventory and cost of goods sold under LIFO, assuming Bonita Company uses the periodic inventory system.

Ending Inventory $Entry field with correct answer 1800 Cost of Goods Sold $Entry field with incorrect answer 5842 Click if you would like to Show Work for this question: Open Show Work

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