Dec. 2 Purchased 1,000 units of inventory for $4,000 on account from Gleam Cube, Co. on terms, 5/10, n/20. 5 Purchased 1,200 units of inventory from Glam on account with terms 4/10, n/30. The total invoice was for $6,000, which included a $300 freight charge. 7 Returned 300 units of inventory to Gleam Cube from the December 2 purchase (cost $1,200). 9 Paid Glam. 11 Sold 500 units of goods to The Cleaners for $9,000 on account with terms 5/10, n/30. Sir Cleansalot's cost of the goods was $2,000. 12 Paid Gleam Cube. 15 Received 100 units with a retail price of $1,800 of goods back from customer The Cleaners. The goods cost Sir Cleansalot $400. 21 Received payment from The Cleaners, settling the amount due in full. 28 Sold 500 units of goods to Beverly, Inc. for cash of $10,500 (cost $2,022). 29 Paid cash for utilities of $300. 30 Paid cash for Sales Commission Expense of $867. 31 Recorded the following adjusting entries: a. Physical count of inventory on December 31 showed 900 units of goods on hand, $4,329 b. Depreciation, $230 c. Accrued salaries expense of $600 d. Prepared all other adjustments necessary for December (Hint: You will need to review the adiustment information from November to determine the remaining adjustments). Assume the cleaning supplies left at December 31 are $90. Requirement 1. Journalize and post the December transactions. Compute each account balance, and denote the balance as Bal. Identify each accounts payable and accounts receivable with the vendor or customer name. Begin by journalizing the December transactions. (Round to the nearest whole dollar. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Dec. 2: Purchased 1,000 units of inventory for $4,000 on account from Gleam Cube, Co. on terms, 5/10, n/20. Date Accounts and Explanation Debit Credit Dec. 2 1. Journalize and post the December transactions. Compute each account balance, and denote the balance as Bal. Identify each accounts payable and accounts receivable with the vendor or customer name. 2. Journalize and post the adjusting entries. Denote each adjusting amount as Adj. Compute each account balance, and denote the balance as Bal. After posting all adjusting entries, prove the equality of debits and credits in the ledger. 3. Prepare the December multi-step income statement, statement of owner's equity, and classified balance sheet for the company. List Service Revenue under gross profit, and ignore classifying the expenses as selling and administrative. 4. Journalize the December closing entries for the company. 5. Compute the gross profit percentage for the company. Sir Cleansalot Cleaning Post-Closing Trial Balance November 30, 2017 Balance Account Title Debit Credit Cash $ 86,450 Accounts Receivable 2,100 90 Cleaning Supplies Prepaid Rent Prepaid Insurance 3,000 3,300 Equipment 4,800 Truck 9,000 $ 230 Accumulated DepreciationEquipment and Truck Accounts Payable 1,300 Unearned Revenue 28,750 120 Interest Payable Notes Payable (Long-term) 36,000 42,340 Haber, Capital $ 108,740 $ 108,740 Total
