On December 1, 2017, Peoples Distributing Company had the following account balances. Debit Credit Cash $ 7,200 Accumulated Depreciation Equipment $ 2,200 Accounts Receivable 4,600 Accounts Payable 4,500 Inventory 12,000 Salaries and Wages Payable 1,000 Supplies 1,200 Owners Capital 39,300 Equipment 22,000 Total $47,000 Total $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 December and$1,000 is for November salaries and wages payable. 8 Received $2,200 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 Boom Co. $9,000, terms 2/10, n/30. 15 Purchased supplies for cash $2,000. 18 Sold merchandise on account $15,000, terms 3/10, n/30. The cost of the merchandise soldwas $10,000. 20 Paid salaries and wages $1,800. 23 Paid Boom 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 $840. 2. Depreciation $200 per month. 3. Supplies on hand $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 Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Sales Revenue, SalesDiscounts, and Supplies Expense. (c) Journalize and post adjusting entries. (d) Prepare an adjusted trial balance. (e) Prepare an income statement and an owners equity statement for December and a balance sheet at December 31.