E PROBLEM following account Credit CPS On December 1, 2015, Prosen Distributing Company had the following a balances Debit Cash $ 7,200 Accumulated Depreciation Accounts Receivable 4,600 Equipment Inventory 12.000 Accounts Payable Supplies 1,200 Salaries and Wages Payable Equipment 22,000 Common Stock $47.000 Retained Earnings $ 2,200 4,500 1.000 30,000 9,300 $47.000 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 Decem and $1,000 is for November salaries and wages payable. 8 Received $1.900 cash from customers in payment of account (no discount all. 10 Sold merchandise for cash $6,300. The cost of the merchandise sold was $4.10 13 Purchased merchandise on account from Maglio Co. $9,000, terms 2/10, /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 $8,000. 20 Paid salaries and wages $1,800. 23 Paid Maglio 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 $1,500. 2 1 Broadening 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 balance sheet at December 31. CUDONCIC