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On December 1, 2022, ABC Distributing had the following account balances. During December, the company completed the following summary transactions: Dec. 6 Paid 1,700 for
On December 1, 2022, ABC Distributing had the following account balances. During December, the company completed the following summary transactions: Dec. 6 Paid 1,700 for salaries and wages due employees, of which 700 is for December and 1,000 is for November salaries and wages payable. Dec. 8 Received 6900 cash from customers in payment of account (no discount allowed). Dec. 10 Sold merchandise for cash 6,000. The cost of the merchandise sold was 4,100. Dec. 15 Purchased supplies for cash 5,000. Dec. 18 Sold merchandise on account 15,000, terms 3/10,n/30. The cost of the merchandise sold was 7,400. Dec. 20 Paid salaries and wages 2,200. Dec. 23 Paid Saturn 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 1,500. Required: a. Analyze the transactions based on the source documents provided using a tabular form. b. Journalize the December transactions using a perpetual inventory system. c. 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. d. Journalize and post adjusting entries e. Prepare an adjusted trial balance. f. Prepare an income statement and a retained earnings statement for December and a classified statement of financial position at December 31. g. Journalize the closing entries and prepare a post-closing trial balance
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