Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

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

Canadian Cases In Financial Accounting

Authors: Carol E. Dilworth, Joan E. D. Conrod

2nd Edition

256111405, 978-0256111408

More Books

Students also viewed these Accounting questions

Question

Why is persistence important? (p. 211)

Answered: 1 week ago

Question

Be relaxed at the hips

Answered: 1 week ago