Question
Comprehensive Accounting Cycle Review 6 On December 1, 2017, Whispering Winds Corp. had the account balances shown below. Debits Credits Cash$4,680Accumulated DepreciationEquipment$1,610Accounts Receivable4,070Accounts Payable2,900Inventory (3,000
Comprehensive Accounting Cycle Review 6
On December 1, 2017, Whispering Winds Corp. had the account balances shown below.
Debits
Credits
Cash$4,680Accumulated DepreciationEquipment$1,610Accounts Receivable4,070Accounts Payable2,900Inventory (3,000 x $0.60)1,800Common Stock9,400Equipment22,400Retained Earnings19,040$32,950$32,950
The following transactions occurred during December.
Dec. 3Purchased 4,000 units of inventory on account at a cost of $0.77 per unit.5Sold 4,400 units of inventory on account for $0.90 per unit. (It sold 3,000 of the $0.60 units and 1,400 of the $0.77.)7Granted the December 5 customer $180 credit for 200 units of inventory returned costing $150. These units were returned to inventory.17Purchased 1,900 units of inventory for cash at $0.90 each.22Sold 1,700 units of inventory on account for $1.04 per unit. (It sold 1,700 of the $0.77 units.)
Adjustment data:
1.Accrued salaries and wages payable $360.2.Depreciation on equipment $200 per month.3.Income tax expense was $240, to be paid next year.
Journalize the December transactions and adjusting entries, assuming Whispering Winds Corp. uses the perpetual inventory method.(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
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