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I really just need help with (b), (d), and (e) but wouldn't mind the clarification on A and C. Thanks ACR5.1 On December 1, 2022,
I really just need help with (b), (d), and (e) but wouldn't mind the clarification on A and C. Thanks
ACR5.1 On December 1, 2022, Divine Distributing Company had the following account balances. 8 Debit Credit Cash $ 7,200 Accumulated Depreciation- Accounts Receivable 4,600 Equipment $ 2,200 Inventory 12,000 Accounts Payable 4,500 Supplies 1,200 Salaries and Wages Payable 1,000 Equipment 22,000 Common Stock 15,000 $47,000 Retained Earnings 24,300 $47,000 During December, the company completed the following 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. Received $1,900 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6,300. The cost of the merchandise sold was $4,100. 13 Purchased merchandise on account from Hecht Co. $9,000, terms 2/10, n/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 Hecht 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 were $800. 2. Depreciation was $200 per month. 3. Supplies on hand were $1,500. 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 transactions. Use these additional accounts: 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 bal- ance sheet at December 31. Totals $65,300 e. Net income $740Step by Step Solution
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