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College Coasters is a San Diego - based merchandiser specializing in logo - adorned drink coasters. The company reported the following balances in its unadjusted
College Coasters is a San Diegobased merchandiser specializing in logoadorned drink coasters. The company reported the
following balances in its unadjusted trial balance at December
The company buys coasters from one supplier. All amounts in Accounts Payable on December are owed to that supplier. The
inventory on December consisted of coasters, all of which were purchased in a batch on July at a unit cost of $ College
Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method.
During December, the company entered into the following transactions. Some of these transactions are explained in greater detail
below.
a Purchased coasters on account from the regular supplier on at a unit cost of $ with terms of
b Purchased coasters on account from the regular supplier on at a unit cost of $ with terms of
c Sold coasters on account on at a unit price of $
d Collected $ from customers on account on
e Paid the supplier $ cash on account on
f Paid employees $ on of which $ related to work done in November and $ was for wages up to December
g Loaded coasters on a cargo ship on to be delivered the following week to a customer in Kona, Hawaii. The sale was made
FOB destination with terms of
Other relevant information includes the following at :
h College Coasters has not yet recorded $ of office expenses incurred in December on account.
The company estimates that the equipment depreciates at a rate of $ per month. One month of depreciation needs to be
recorded.
j Wages for the period from December are $ and will be paid on January
The $ of Prepaid Rent relates to a sixmonth period ending on May of next year.
I. The company incurred $ of income tax but has made no tax payments this year.
m No shrinkage or damage was discovered when the inventory was counted on December
The company did not declare dividends and there were no transactions involving common stock.
Prepare the journal entries to record the transactions a through Review the accounts as shown in the General Ledger and Trial
Balance tabsIf no entry is required for a transactionevent select No journal entry required" in the first account field.
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