COMPREHENSIVE PROBLEM CPS On December 1, 2017, Jurczyk Distributing Company Ltd. had the following account balances. Debit Credit Cash Accumulated Depreciation- Accounts Receivable 4,600 Equipment 2.200 Inventory 12,000 Accounts Payable 4,500 Supplies 1,200 Salaries and Wages Payable 1,000 Equipment 22.000 Share Capital-Ordinary 30,000 47.000 Retained Earnings 9,300 47,000 13 During December, the company completed the following summary transactions. Dec. 6 Paid 1,600 for salaries and wages due employees, of which 600 is for December and 1,000 is for November salaries and wages payable. 8 Received 2,100 cash from customers in payment of account (no discount allowed) 10 Sold merchandise for cash 6,600. The cost of the merchandise sold was 4,100 Purchased merchandise on account from Gong Co. 9,000, terms 2/10, n/30. 15 Purchased supplies for cash 2,000 18 Sold merchandise on account 12,000, terms 3/10, n/30. The cost of the merchandise sold was 8,400. 20 Paid salaries and wages 1,800. 23 Paid Gong Co. in full, less discount. 27 Received collections in full, less discounts, from customers billed on December 18. Adjustment data: 1. Accrued salaries and wages payable 800. 2. Depreciation 200 per month. 3. Supplies on hand 1,700. 270 5 Accounting for Merchandising Operations Instructions (a) Journalize the December transactions using a perpetual inventory system. (b) Enter the December 1 balances in the ledger T-accounts and post the December trans- actions. Use Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Sales Revenue, Sales Discounts, and Supplies Expense. (c) Journalize and post adjusting entries. (d) Prepare an adjusted trial balance. (e) Prepare an income statement and a retained earnings statement for December and a classified statement of financial position at December 31. (d) Totals 65,600 (e) Net income 840