Comprehensive Accounting Cycle Review 5-1 (Part Level Submission)

On December 1, 2017, Devine Distributing Company had the following account balances.

		Debit				Credit
Cash		$7,400		Accumulated DepreciationEquipment		$2,250
Accounts Receivable		5,600		Accounts Payable		4,500
Inventory		11,500		Salaries and Wages Payable		1,000
Supplies		1,200		Common Stock		15,100
Equipment		22,500		Retained Earnings		25,350
		$48,200				$48,200

During December, the company completed the following summary transactions.

Dec. 6		Paid $1,900 for salaries due employees, of which $900 is for December and $1,000 is for November salaries payable.
8		Received $1,800 cash from customers in payment of account (no discount allowed).
10		Sold merchandise for cash $6,500. The cost of the merchandise sold was $4,200.
13		Purchased merchandise on account from Hecht Co. $9,200, terms 2/10, n/30.
15		Purchased supplies for cash $1,700.
18		Sold merchandise on account $12,600, terms 3/10, n/30. The cost of the merchandise sold was $8,200.
20		Paid salaries $1,800.
23		Paid Hecht Co. in full, less discount.
27		Received collections in full, less discounts, from customers billed on December 18.

(e) Prepare an adjusted trial balance. e1) Prepare an income statement. e2) Prepare a retained earnings statement for December (e3) Prepare a classified balance sheet at December 31. (List current assets in order of liquidity.)