Equipment College Coasters is a San Diego-based merchandiser specializing in logo-auored drink coasters. The company reported the following balances in its unadjusted trial balance of December 1. 1 Cash $ 9,700 Accounts Receivable 1,700 Inventory 500 Prepaid Rent 660 590 Accumulated Depreciation 100 Accounts Payable 1,430 Salaries and Wages Payable 283 Income Taxes Payable 3 Connon Stock 5,683 Retained Carnings 2.000 Sales Revenue 14,949 Cost of Goods Sold 7.210 Rent Expense Salaries and Wages Expense 2,000 Depreciation Expense 169 Incone Tax Expense office Expense 1,200 The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1 consisted of 1.000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.50. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost fow method. 1.210 During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below. a Purchased 400 coasters on account from the regular supplier on 121 at a unit cost of $052 with terms of n/60 Purchased 900 coasters on account from the regular supplier on 122 at a unit cost of $055, with terms of n/60 Sold 1900 coasters on account on 12/3 at a unit price of $110 d Collected $860 from customers on account on 12,4 e Paid the supplier $1500 cash on account on 12/18 Paid employees 5460 on 12/23, of which $290 related to work done in November and S170 was for wages up to December 22 g Loaded 90 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona Hawaii The sale was made FOB destination with terms of n/60 Other relevant information includes the following at 12/31 h. College Coasters has not yet recorded 5170 of office expenses incurred in December on account. 1. The company estimates that the equipment depreciates at a rate of $10 per month. One month of depreciation needs to be recorded. Wages for the period from December 23-31 are $100 and will be paid on January 15. k. The 5660 of Prepaid Rent relates to a six-month period ending on May 31 of next year. 1. The company incurred 5700 of income tax but has made no tax payments this year, 72. No shrinkage or damage was discovered when the inventory was counted on December 31. n. The company did not declare dividends and there were no transactions involving common stock. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries to record the transactions (a) through (n). Review the accounts as shown in the General Ledger and Trial Balance tabs. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 2 3 5 6 7 7 8 8 .... 15 > > Purchased 400 coasters on account from the regular supplier on 12/1 at a unit cost of $0.52, with terms of n/s. Record the transaction. Note: Enter debits before credits General Journal Debit Credit Date December 01 Record entry Clear entry View general journal
