Question
On December 1, 2022 Ivanhoe Company had the following account balances. Debits Credits Cash $18200 Accumulated Depreciation- Equipment $3170 Notes Receivable 2140 Accounts Payable 6300
On December 1, 2022 Ivanhoe Company had the following account balances.
Debits | Credits | ||
---|---|---|---|
Cash | $18200 | Accumulated Depreciation- Equipment | $3170 |
Notes Receivable | 2140 | Accounts Payable | 6300 |
Accounts Receivable | 7310 | Common Stock | 49500 |
Inventory | 16800 | Retained Earnings | 16840 |
Prepaid Insurance | 1760 | ||
Equipment | 29600 | ||
= $75,810 | = $75,810 |
During December, the company completed the following transactions.
Dec. | 7 | Received $3,760 cash from customers in payment of account (no discount allowed). | |
12 | Purchased merchandise on account from Green Co. $13,000, terms 1/10, n/30. | ||
17 | Sold merchandise on account $16,900, terms 2/10, n/30. The cost of the merchandise sold was $10,200. | ||
19 | Paid salaries $2,030. | ||
22 | Paid Green 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). |
Journalize the December transactions. (Assume a perpetual inventory system.)
Date | Account Titles and Explanation | Debit | Credit |
Dec. 7 | Cash | 3760 | |
Accounts Receivable | 3760 | ||
Dec. 12 | Inventory | 13000 | 13000 |
Accounts Payable | |||
Dec. 17 | Accounts Receivable | 16900 | |
Sales Revenue | 16900 | ||
(To record sales revenue) | |||
Dec. 17 | Cost of Goods Sold | 10200 | |
Inventory | 10200 | ||
(To record cost of goods sold) | |||
Dec. 19 | Salaries and Wages Expense | 2030 | |
Cash | 2030 | ||
Dec. 22 | Accounts Payable | 13000 | |
Cash | 12870 | ||
Inventory | 130 | ||
Dec. 26 | Cash | 16562 | |
Sales Discount | 338 | ||
Accounts Receivable | 16900 | ||
Dec. 31 | Cash | 2600 | |
Accounts Receivable | 2600 |
Enter the December 1 balances in the ledger T accounts and post the December transactions. (Post entries in the order of journal entries presented above.
The statement from Lyon County Bank on December 31 showed a balance of $26,402. A comparison of the bank statement with the Cash account revealed the following facts.
1. | The bank collected the $2,140 note receivable for Ivanhoe Company on December 15 through electronic funds transfer. | |
2. | The December 31 receipts were deposited in a night deposit vault on December 31. These deposits were recorded by the bank in January. | |
3. | Checks outstanding on December 31 totaled $1,240. | |
4. | On December 31, the bank statement showed a NSF charge of $600 for a check received by the company from M. Lawrence, a customer, on account. |
Prepare a bank reconciliation as of December 31 based on the available information.(Hint: The cash balance per books is $26,222. This can be proven by finding the balance in the Cash account from parts (a) and (b).) (List items that increase balance as per bank & books first.)
Adjustment data:
1. | The amount of depreciation is $110. | |
2. | Insurance expired $440. | |
3. | Income tax expense was $310. It was unpaid at December 31. |
PLEASE ANSWER: 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.)
ANSWER PLEASE: Post the adjusting entries to the ledger T-accounts. (Post entries in the order of journal entries presented above. For accounts that have a zero balance select "12/31 Bal." from the list and enter 0 for the amount.)
Cash Date 12/1 Bal. 12/7 12/26 Date 18200 12/19 2030 3760 12/22 12870 16562 Date 12/22 Accounts Payable Date 13000 12/1 Bal. 12/12 6300 13000 12/31 2600 Common Stock Notes Receivable Date Date 12/1 Bal. 2140 Date Date 12/1 Bal. 49500 Accounts Receivable Date Retained Earnings Date 12/1 Bal. Date 12/1 Bal. 12/17 16840 7310 16900 Date 12/7 3760 12/26 16900 12/31 2600 Date Sales Revenue Date 12/17 16900 Inventory Date 16800 12/17 | 10200 13000 12/22 | 130 Date 12/1 Bal. 12/17 Sales Discounts Date Date 12/26 338 Prepaid Insurance Date Date 12/1 Bal. 1760 Cost of Goods Sold Date Date 12/17 10200 Equipment Date Date 12/1 Bal. 29600 Salaries and Wages Expense Date Date 12/1 2030 Accumulated Depreciation Equipment Date Date 12/1 Bal. 3170 IVANHOE COMPANY Bank Reconciliation December 31, 2022 Cash Balance per Bank Statement, $ 26402 Add : Deposits in Transit 2600 29002 Less 4: Outstanding Checks (1240) i Adjusted Cash Balance per Bank $ 27762 Cash Balance per Books $ 26222 Add 4 Electric funds transfer received 2140 28362 Less : NSF Check (600) Adjusted Cash Balance per Books $ 27762 Date Debit Credit Dec. 31 2140 2140 Dec. 31 600 600 Dec. 31 110 Account Titles and Explanation Cash Note Receivable (To record electric funds transfer received) Accounts receivable Cash (To record NSF check) Depreciation Expense Accumulated Depreciation- Equipment (To record depreciation expense) Insurance Expense Prepaid Insurance (To record insurance expense) Income Tax Expense Income Taxes Payable (To record income tax expense) 110 Dec. 31 440 440 Dec. 31 310 310 Cash Sales Revenue Date ? Date 12/17 18200 3760 ? Date 12/1 Bal. 12/7 12/26 12/31 16900 Date 12/19 12/22 ? ? 2030 12870 ? ? Accumulated Depreciation- Equipment Date Date ? 7310 12/1 Bal. 3170 ? 16900 ? ? ? ? ? ? 16562 2600 Sales Discount ? ? ? ? ? ? ? ? Date 12/26 Date ? 338 ? Accounts Payable Notes Receivable ? ? ? Date ? Date Date ? 12/1 Bal. 2140 ? Date 12/1 Bal. ? 12/1 Bal. 12/12 6300 1300 Cost of Goods ? ? 13000 ? ? ? ? ? ? ? Date 12/17 Date ? Accounts Receivable 10200 ? Income Taxes Payable ? ? ? ? 3760 Date Date 12/1 Bal. 12/17 ? Date ? Depreciation Expense Date 12/7 12/26 12/31 ? ? ? 7310 16900 ? ? ? 16900 2600 ? ? ? ? Date ? Date ? ? ? ? Common Stock ? ? ? ? Inventory Date ? Salaries and Wages Expense ? Date 12/1 Bal. 12/12 49500 Date 12/1 Bal. ? Date 12/17 12/22 16800 13000 10200 130 ? ? ? Date 12/19 Date ? 2030 ? ? ? ? ? Retained Earnings ? ? ? ? Prepaid Insurance Date ? Date 12/1 Bal. Insurance Expense ? 16840 Date 12/1 Bal. Date ? ? ? ? ? Date ? Date ? 1760 ? ? ? ? ? ? ? ? ? ? ? Equipment Income Tax Expense Date 12/1 Bal. ? Date ? Date ? Date ? 29600
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