FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 1, 2017, Prosen Distributing Company had the following account balances. Debit Credit Cash $7,600 Accumulated DepreciationEquipment $2,530 Accounts Receivable 5,200 Accounts Payable 4,500

On December 1, 2017, Prosen Distributing Company had the following account balances.

Debit

Credit
Cash $7,600 Accumulated DepreciationEquipment $2,530
Accounts Receivable 5,200 Accounts Payable 4,500
Inventory 12,500 Salaries and Wages Payable 1,200
Supplies 1,500 Common Stock 30,000
Equipment 25,300 Retained Earnings 13,870
$52,100 $52,100

During December, the company completed the following summary transactions.

Dec. 6 Paid $1,750 for salaries and wages due employees, of which $550 is for December and $1,200 is for November salaries and wages payable.
8 Received $1,800 cash from customers in payment of account (no discount allowed).
10 Sold merchandise for cash $6,900. The cost of the merchandise sold was $3,800.
13 Purchased merchandise on account from Maglio Co. $8,900, terms 2/10, n/30.
15 Purchased supplies for cash $1,700.
18 Sold merchandise on account $12,800, terms 3/10, n/30. The cost of the merchandise sold was $8,100.
20 Paid salaries and wages $1,900.
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 $700.
2. Depreciation $230 per month.
3. Supplies on hand $1,500.

Journalize adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Post adjusting entries. (Post entries in the order of journal entries presented above.)

Cash
12/1 Bal. 7,600 12/6 1,750
12/8 1,800 12/15 1,700
12/10 6,900 12/20 1,900
12/27 12,416 12/23 8,722
12/31 Bal. 14,644
Accounts Receivable
12/1 Bal. 5,200 12/8 1,800
12/18 12,800 12/27 12,800
12/31 Bal. 3,400
Inventory
12/1 Bal. 12,500 12/10 3,800
12/13 8,900 12/18 8,100
12/23 178
12/31 Bal. 9,322
Supplies
12/1 Bal. 1,500

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.
12/15 1,700

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.
Equipment
12/1 Bal. 25,300
12/31 Bal. 25,300
Accumulated DepreciationEquipment

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

 12/1 Bal. 2,530

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.
Accounts Payable
12/23 8,900 12/1 Bal. 4,500
12/13 8,900
12/31 Bal. 4,500
Salaries and Wages Payable
12/6 1,200 12/1 Bal. 1,200

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.
Common Stock
12/1 Bal. 30,000
12/31 Bal. 30,000
Retained Earnings
12/1 Bal. 13,870
12/31 Bal. 13,870
Sales Revenue
12/10 6,900
12/18 12,800
12/31 Bal. 19,700
Sales Discount
12/27 384
12/31 Bal. 384
Cost of Goods Sold
12/10 3,800
12/18 8,100
12/31 Bal. 11,900
Depreciation Expense

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.
Salaries and Wages Expense
12/6 550

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.
12/20 1,900

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.
Supplies Expense

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

12/1 Bal.12/612/812/1012/1312/1512/1812/2012/2312/2712/3112/31 Bal.

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

Students also viewed these Accounting questions

Question

7.28 A random sample of size n = 40 is selected from a population with mean deviation or = 20. = 100 and standard a. What will be the approximate shape of the sampling distribution of X? b. What will...

Answered: 1 week ago

Question

★★★★★
Baker and Klatt (BK) is a law firm that gets a large portion of its revenue from corporate clients. In Year 2, BKs billable hours for corporate clients were up 20 percent from Year 1 levels, but, as...

Answered: 1 week ago

Question

★★★★★
Problem 5 - 8 Assume that a lender offers a 3 0 - year, $ 1 4 5 , 0 0 0 adjustable rate mortgage ( ARM ) with the following terms: Initial interest rate = 7 . 5 percent Index = one - year Treasuries...

Answered: 1 week ago

Question

★★★★★
IM Strong, Inc. does not keep track of its dividends on a separate basis. If IM Strong, Inc. declared a cash dividend of $10,000 on November 1, 2020, which of the following statements is true for...

Answered: 1 week ago

Question

★★★★★
Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine hours per year, which...

Answered: 1 week ago

Question

★★★★★
You are designing a wireless multihop network that can tolerate 5% packet loss, meaning that 95% of the packets must be delivered to the destination. i) Would you recommend using TCP or UDP at the...

Answered: 1 week ago

Question

★★★★★
On August 31, 2018, a fire destroyed totally the rented "bodega" or stockroom of the Company. The following are some of the data of the company: Merchandise inventory, December 31, 2017 P110,000 For...

Answered: 1 week ago

Question

★★★★★
If an instance of ANE happens for a client, direct service providers should do the following: Record TV shows that were going to be watched for later viewing Report knowledge or suspicion of ANE to...

Answered: 1 week ago

Question

★★★★★
Learning Source, Inc. has two divisions: Test Preparation and Language Arts. Results (in millions) for the past three years are partially displayed here: (Click the icon to view the results.)...

Answered: 1 week ago

Previous Question Next Question