Comprehensive Accounting Cycle Review 5-1 (Part Level Submission)
Description / Instructions: Please notice that Part 2 which required posting regular journal entries has only been assigned 01 points. Please hit the submit button 3 times for Part 2 instead of doing the posting. Because of the minimal points, it will not affect your overall score for this problem. (It is not possible to assign it zero points.) Comprehensive Accounting Cycle Review 5-1 (Part Level Submission) On December 1, 2017, Devine Distributing Company had the following account balances. Cash Accounts Receivable Inventory Supplies Equipment Debit $7,000 5,100 11,900 1,500 23,100 $48,600 Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Common Stock Retained Earnings Credit $2,310 4,800 1,100 15,300 25,090 $48,600 During December, the company completed the following summary transactions. Dec. 6 8 10 13 15 18 20 23 27 Paid $1,600 for salaries due employees, of which $500 is for December and $1,100 is for November salaries payable. Received $2,000 cash from customers in payment of account (no discount allowed). Sold merchandise for cash $7,000. The cost of the merchandise sold was $3,800. Purchased merchandise on account from Hecht Co. $8,600, terms 2/10, n/30. Purchased supplies for cash $1,800. Sold merchandise on account $12,800, terms 3/10, n/30. The cost of the merchandise sold was $8,200. Paid salaries $1,700. Paid Hecht Co. in full, less discount. Received collections in full, less discounts, from customers billed on December 18. (a) Journalize the December transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Debit Credit Account Titles and Explanation Dec. 6 (To record the sales revenue.) (To record cost of goods sold.) (To record the sales revenue.) (To record cost of goods sold.) Dec. 27 (b) Enter the December 1 balances in the ledger T-accounts and post the December transactions. (Post entries the order of journal entries presented above.) Cash Accounts Receivable Inventory Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries and Wages Payable Common Stock Retained Earnings Sales Revenue Sales Discounts Cost of Goods Sold Salaries and Wages Expense (c) Adjustment data: 1. 2. 3. 4. Accrued salaries payable $500. Depreciation $210 per month. Supplies on hand $1,500. Income tax due and unpaid at December 31 is $190. Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. Post the above adjusting entries. (Post entries in the order of journal entries presented above.) Post the above adjusting entries. (Post entries in the order of journal entries presented above.) 12/1 Bal. 12/8 12/10 12/27 12/31 Bal. 1.600 1,800 1,700 8,428 2,000 12/1 Bal. 12/18 12/31 Bal. Cash 7,000 12/6 2,000 12/15 7,000 12/20 12,416 12/23 14,888 Accounts Receivable 5,100 12/8 12,800 12/27 3,100 Inventory 11,900 12/10 8,600 12/18 12/23 8,328 Supplies 12,800 12/1 Bal. 12/13 3,800 8,200 172 12/31 Bal. 12/1 Bal. 1,500 12/15 1,800 12/1 Bal. 12/31 Bal. Equipment 23,100 23,100 Accumulated Depreciation-Equipment 12/1 Bal. 2,310 12/23 Accounts Payable 8,600 12/1 Bal. 12/13 12/31 Bal. Salaries and Wages Payable 1,100 12/1 Bal. 4,800 8,600 4,800 12/6 1,100 Income Taxes Payable 15,300 15,300 25,090 25,090 Common Stock 12/1 Bal. 12/31 Bal. Retained Earnings 12/1 Bal. 12/31 Bal. Sales Revenue 12/10 12/18 12/31 Bal. Sales Discounts 384 7,000 12,800 19,800 12/27 12/31 Bal. 12/10 12/18 12/31 Bal. 384 Cost of Goods Sold 3,800 8,200 12,000 Depreciation Expense Salaries and Wages Expense 12/6 500 12/20 1,700 Supplies Expense Income Tax Expense (d) Prepare an adjusted trial balance. DEVINE DISTRIBUTING COMPANY Adjusted Trial Balance Debit Credit (11) Prepare an income statement. DEVINE DISTRIBUTING COMPANY Income Statement (e2) Prepare a retained earnings statement for December DEVINE DISTRIBUTING COMPANY Retained Earnings Statement (e3) Prepare a classified balance sheet at December 31. (List current assets in order of liquidity.) DEVINE DISTRIBUTING COMPANY Balance Sheet Assets $ DA A SANTA MARIA CATALANES Liabilities and Stockholders' Equity
