Current Attempt in Progress -/1 E The Sandhill Shop, owned by Andrew John, sells skateboards in the summer and snowboards in the winter. The shop has an August 31 fiscal year end, and uses a perpetual inventory system and the earnings approach. On August 1, 2024, the company had the following balances in its general ledger: Cash $21,650 A. Taylor, drawings $53,800 Merchandise inventory 64,150 Sales 493,500 Supplies 4.050 Rent revenue 1,100 Equipment 72.400 Sales returns and allowances 11.410 Accumulated depreciation-equipment 13.575 Cost of goods sold 301.100 Accounts payable 12.750 Salaries expense 69,520 Unearned revenue 4.770 Rent expense 19.470 Notes payable 36.000 Insurance expense 4.120 A. Taylor, capital 61,625 Interest expense 1.650 During August, the last month of the fiscal year, the company had the following transactions: During August, the last month of the fiscal year, the company had the following transactions: Aug. 1 Paid $1,770 for August's rent. 10 11 12 Paid $6,500 of the amount included in Accounts Payable. Sold merchandise costing $7,900 for $12,000 cash. Purchased merchandise on account from Orange Line Co., n/30, FOB shipping point, for $24,000. Pd freight charges of $530 on merchandise purchased from Orange Line Co. Purchased supplies on account for $360. Refunded a customer $425 cash for returned merchandise. The merchandise had cost $262 and was returned to inventory. Sold merchandise on account to Spider Company for $16,050, terms 2/10, n/30, FOB shipping point. The merchandise had a cost of $9.705. Paid Orange Line Co. for half of the merchandise purchased on August 5. Spider Company returned $750 of the merchandise it purchased. Sandhill Shop issued Spider a credit to its account. The merchandise had a cost of $461 and was returned to inventory. 15 Paid salaries, $3,160. 19 Spider Company paid the amount owing. Question 1 of 1 10 11 12 Sold merchandise on account to Spider Company for $16,050, terms 2/10, n/30, FOB shipping point. The merchandise had a cost of $9,705. Paid Orange Line Co. for half of the merchandise purchased on August 5. Spider Company returned $750 of the merchandise it purchased. Sandhill Shop issued Spider a credit to its account. The merchandise had a cost of $461 and was returned to inventory. 15 Paid salaries, $3,160. 19 21 21 23 Spider Company paid the amount owing. Purchased $9,700 of merchandise from Rainbow Option Co. on account, terms 2/10, n/30, FOB destination. Returned $800 of the merchandise to Rainbow Option Co. and received a credit on the account. Received $520 cash in advance from customers for merchandise to be delivered in September. 24 30 Paid salaries, $3,160. 30 Paid Rainbow Option Co. the amount owing. 31 Andrew John withdrew $4,900 cash. -/1 (a) Create a general ledger account for each of the above accounts and enter the August 1 balances. Cash Date Explanation Ref. Debit Credit Balance Aug. 1 Balance Merchandise Inventory Date Explanation Ref. Debit Credit Balance Aug. 1 Balance Supplies Date Explanation Ref. Debit Credit Aug. 1 Balance Balance Equipment Date Explanation Ref. Debit Credit Balance MacBook Pro Question 1 of 1 Balance Accumulated Depreciation-Equipment Date Explanation Ref. Debit Credit Aug. 1 Balance Accounts Payable Date Explanation Ref. Debit Credit Balance Aug. 1 Balance Unearned Revenue Date Explanation Ref. Debit Credit Balance Aug. 1 Balance Notes Payable Date Explanation Ref. Debit Credit Balance Aug. 1 Balance A. Taylor, Capital Date Explanation Ref Ref Credit Balance MacBook Pro -/1 !!! Date Explanation Ref. Debit Credit Aug. 1 Balance Balance Sales Date Explanation Ref. Debit Credit Balance Aug. 1 Balance Sales Returns and Allowances Date Explanation Ref. Debit Credit Aug. 1 Balance Balance Rent Revenue Date Explanation Ref. Debit Credit Balance Aug. 1 Balance Cost of Goods Sold Date Explanation Ref. Debit Credit Balance Aug. 1 Balance Question 1 of 1 Date Explanation Ref. Debit Credit Balance Aug. 1 Balance Salaries Expense Date Explanation Ref. Debit Credit Balance Aug. 1 Balance Rent Expense Date Explanation Ref. Debit Credit Balance Aug. 1 Balance Insurance Expense Date Explanation Ref. Debit Credit Balance Aug. 1 Balance Interest Expense Date Explanation Ref. Debit Credit Balance NNN MacBook Pro -/1 !