College Coasters is a San Diego-based merchandiser specializing in logo drink coastersThe company reported following balances in its unadjusted trial balance at December 1. The company Buys consters from one supplierAll amounts in Accounts Payable on December owed to that supplier The Inventory on December consisted of consters, all of which were purchased in a batch on July 10 at a cost of 50.40 Coasters records its inventory using perpetual inventory accounts and the FIFO cost method

**No decimals for the general journal - balance sheet**

College Coasters is a San Diego-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December Accounts Receivable Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxos Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Rent Expense Salaries and Wages Expense Depreciation Exponse Income Tax Expense offico Expense 5,600 1.500 320 500 950 90 1.250 300 0 5. 200 2,700 14,940 7,050 1.210 1.900 90 1.300 The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier The inventory on December 1 consisted of 800 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.40. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method Prey 1 of 1 NOX The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier The inventory on December 1 consisted of 800 coasters, all of which were purchased in a batch on July 10 ata unit cost of $0.40. 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 detall below Purchased 500 coasters on account from the regular supplier on 12/1 at a unit cost of $0.42. with terms of /60 Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.45, with terms of n/60. Sold 1700 coasters on account on 12/3 at a unit price of $100 Collected $860 from customers on account on 12/4. e Pald the supplier $1,570 cash on account on 12/18 Paid employees $470 on 12/23, of which $260 related to work done in November and $210 was for wages up to December 22. Loaded 80 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona. Hawall. The sale was made FOB destination with terms of n/60 Other relevant information includes the following at 12/31 Prey 1 of 1 Hi Next Other relevant information includes the following at 12/31 n College Coasters has not yet recorded $190 of office expenses incurred in December on account. The company estimates that the equipment depreciates at a rate of $8 per month. One month of depreciation needs to recorded Wages for the period from December 23-31 are $100 and will be paid on January 15, k. The $660 of Prepaid Rent relates to a six-month period ending on May 31 of next year. 2. The company incurred $700 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 31 1. The company did not declare dividends and there were no transactions involving common stock Debit Credit No General Journal Date December 01 210 1 Inventory Accounts Payable 210 405 2 December 02 Inventory Accounts Payable 405 1,700 3 December 03 Accounts Receivable Sales Returns and Allowances 1,700 733 4 December 03 Cost of Goods Sold Inventory 733 860 5 December 04 Cash Accounts Payable 860 1.570 6 December 18 Accounts Payable Cash 1,570 Trial Balance December 31, 2021 Debit Credit Account Title s 7.230 3,500 202 950 98 1.155 140 700 Cash accounts Receivable wentory Equipment ccumulated Depreciation Equipment Accounts Payable Salaries and Wages Payable ncome Taxes Payable Common Stock Retained Eamings Rent Revenue Sales Revenue Sales Returns and Allowances Cost of Goods Sold Depreciation Expense Office Expenses 5.200 2,700 110 14.940 1,700 8,383 98 1.490 1 0 1 11 Next En COLLEGE COASTERS Income Statement For the Year Ended December 31 Revenues: $ 14,940 8,383 6,557 $ Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Rent Expense Salaries and Wages Expense Depreciation Expense Office Expenses 1,870 2.210 98 1,490 0 $ 5,668 889 Total Operating Expenses Other Operating Expenses Income Tax Expense Net Income + 700 $ 1,875 COLLEGE LUASTERS Balance Sheet As of December 31 7.230 3,500 202 0 Assets Current Assets Cash Accounts Receivable Inventory Prepaid Rent Total Current Assets Accumulated Depreciation-Equipment Total Assets Liabilities Current Liabilities Accounts Payable Salaries and Wages Payable Income Taxes Payable Total Current Liabilities Stockholders' Equity Common Stock 10,932 (90) 10,842 1.155 140 700 $ 1,995 5,200 Prey 1 of 1