Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Comprehensive Accounting Cycle Review 06 On December 1, 2022, Sunland Company had the account balances shown below. Debits Cash $4,900 Accumulated Depreciation-Equipment Accounts Receivable

image text in transcribed

Comprehensive Accounting Cycle Review 06 On December 1, 2022, Sunland Company had the account balances shown below. Debits Cash $4,900 Accumulated Depreciation-Equipment Accounts Receivable 3,930 Accounts Payable Inventory (3,300 x $0.60) Equipment 1,980 Common Stock 21,700 $32,510 Retained Earnings Credits $1,440 3,000 10,500 17,570 $32,510 The following transactions occurred during December. Dec. 3 Purchased 4,300 units of inventory on account at a cost of $0.71 per unit. 5 Sold 4,700 units of inventory on account for $1.00 per unit. (It sold 3,300 of the $0.60 units and 1,400 of the $0.71.) 7 Granted the December 5 customer $300 credit for 300 units of inventory returned costing $270. These units were returned to inventory. 17 Purchased 2,300 units of inventory for cash at $0.80 each. 22 Sold 2,200 units of inventory on account for $0.99 per unit. (It sold 2,200 of the $0.71 units.) Adjustment data: 1. Accrued salaries and wages payable $370. 2. Depreciation on equipment $210 per month. 3. Income tax expense was $190, to be paid next year. Journalize the December transactions and adjusting entries, assuming Sunland Company uses the perpetual inventory method. (Credit account titles are automat amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Core Concepts of Accounting Information Systems

Authors: Mark G. Simkin, Jacob M. Rose, Carolyn S. Norman

12th edition

1118022300, 978-1118022306

More Books

Students also viewed these Accounting questions