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.

Question:

Enter the December 1 balances in the ledger T-accounts and post the December transactions.(Post entries in the order of journal entries presented above.)