Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hi can you answer this questions please thank you in advance. On December 1, 2020, Sigma Distributing had the following account balances. During December, the

hi can you answer this questions please
thank you in advance.
image text in transcribed
image text in transcribed
On December 1, 2020, Sigma Distributing had the following account balances. 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. Dec. 8 Received 2,100 cash from customers in payment of account (no discount allowed). Dec. 10 Sold merchandise for cash 6,600. The cost of the merchandise sold was 4,100. Dec. 13 Purchased merchandise on account from Gong Co, 9,000, terms 2/10,n/30. Dec. 15 Purchased supplies for cash 2,000. Dee. 18 Sold merchandise on account 12,000, terms 3/10,n/30. The cost of the merchandise sold was 8,400. Dec. 20 Paid salaries and wages 1,800. Dec. 23 Paid Gong Co. in full, less discount. Dec. 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. Instructions a. Journalize the December transactions using a perpetual inventory system (18 points). b. Enter the December 1 balances in the ledger T-accounts and post the December transactions. Use Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Sales Revenue, Sales Discounts, and Supplies Expense (16 points). c. Journalize and post adjusting entries (6 points). d. Prepare an adjusted trial balance (17 points). e. Prepare an income statement and a retained earnings statement for December and a classified statement of financial position at December 31 (24 points). Lina Co. uses a periodic inventory system. Its records show the following for the month of April, in which 68 units are sold. Instructions: Compute the ending inventory at April 30 and cost of goods sold using FIFO and average-cost methods

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Best Practices

Authors: Steven M. Bragg

3rd Edition

0471444286, 978-0471444282

More Books

Students also viewed these Accounting questions

Question

What are the differences between dismissal and discharge?

Answered: 1 week ago