On December 1, 2020, Bramble Company had the following account balances. Debit $18,100 2,000 8,000 16,000 1,700 28,700 $74,500 Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Owner's Capital Credit $3,100 6,000 65,400 $74,500 Dec. During December, the company completed the following transactions. Received $3,500 cash from customers in payment of account (no discount allowed). 7 12 Purchased merchandise on account from Vance Co. $12,200, terms 1/10,n/30. 17 Sold merchandise on account $16,200, terms 2/10, 1/30. The cost of the merchandise sold was $9.700. 19 Paid salaries $2,200. 22 Paid Vance Co. in full, less discount 26 Received collections in full, less discounts, from customers billed on December 17, 31 Received $2,600 cash from customers in payment of account (no discount allowed). Adjustment data: 1. 2. Depreciation $200 per month. Insurance expired $390. Journalize the December transactions. (Assume a perpetual inventory system.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Dec. 7 Cash 3500 Accounts Receivable Dec 12 Inventory 12200 Dec. 17 16200 Accounts Payable Accounts Receivable Sales Revenue (To record sales) Cost of Goods Sold 1 Dec. 17 9700 Inventory (To record cost of goods sold) Salaries and Wages Expense Dec. 19 2200 Cash Dec. 22 Accounts Payable 12200 Inventory Sales Discounts Dec. 26 Cash 15876 Sales Discounts 324 Accounts Receivable Dec. 31 Cash 2600 Accounts Receivable Enter the December 1 balances in the ledger T-accounts and post the December transactions. (Post entries in the order of journal entries presented in the previous part.) Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Owner's Capital Sales Revenue Notes Receivable Accounts Receivable Inventory Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Owner's Capital Sales Revenue Sales Discounts Cost of Goods Sold Salaries and Wages Expense The statement from Jackson County Bank on December 31 showed a balance of $25,838. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank collected a note receivable of $2,000 for Bramble Company on December 15. The December 31 receipts were deposited in a night deposit vault on December 31. These deposits were recorded by the bank in January Checks outstanding on December 31 totaled $1,300. 4. On December 31, the bank statement showed an NSF charge of $660 for a check received by the company from L. Bryan, a customer, on account. 2. 3. Prepare a bank reconciliation as of December 31 based on the available information. (Hint: The cash balance per books is $25,798. This can be proven by finding the balance in the Cash account from parts (a) and (b).) (List items that increase cash balance first. Reconcile cash balance per bank first.) BRAMBLE COMPANY Bank Reconciliation $ $ $ Journalize the adjusting entries resulting from the bank reconciliation and adjustment data. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Cr Date Account Titles and Explanation Dec. 31 (To record collection of notes receivable) Dee. 31 (To record NSF charge) Dec. 31 (To adjust depreciation) Dec. 31 (To adjust insurance) Post the adjusting entries to the ledger T-accounts. (Post entries in the order of journal entries presented in the previous part.) 12/1 Bal 12/7 Cash 18,100 12/19 3,500 12/22 15,876 2.200 12.078 12/26 12/31 2,600 Notes Receivable 2,000 12/1 Bal. 12/1 Bal. 12/17 Accounts Receivable 8.000 12/7 16,200 12/26 12/31 3,500 16,200 2.600 12/1 Bal. 12/12 Inventory 16,000 12/17 12,200 12/22 9.700 122 Prepaid Insurance 1.700 12/1 Bal. 12/1 Bal. Equipment 28,700 Accumulated Depreciation-Equipment 12/1 Bal. 3.100 Accumulated Depreciation-Equipment 12/1 Bal. 3.100 12/22 Accounts Payable 12,200 12/1 Bal 12/12 6,000 12,200 65,400 Owner's Capital 12/1 Bal. Sales Revenue 12/17 16,200 Sales Discounts 324 12/26 Cost of Goods Sold 9,700 12/17 Depreciation Expense Salaries and Wages Expense 2.200 12/19 Insurance Expense Prepare an adjusted trial balance. (Do not list those accounts that have zero ending balance.) BRAMBLE COMPANY Adjusted Trial Balance Debit Credit s S Prepare an income statement for December. BRAMBLE COMPANY Income Statement $ HA Prepare a classified balance sheet at December 31. (List Current Assets in the order of liquidity.) BRAMBLE COMPANY Balance Sheet Assets $ $ $ . $ Liabilities and Owners' Equity $
