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Please help with the T accounts because I am unsure if the adjusting data applies to the T accounts or only part C and D
Please help with the T accounts because I am unsure if the adjusting data applies to the T accounts or only part C and D
ACR5-1 On December 1, 2017, Devine Distributing Company had the following account balances. Debit Credit Accumulated Depreciation-Equipment Cash $7,200 $ 2,200 Accounts Receivable Accounts Payable 4,600 4,500 Salaries and Wages Payable Inventory 12,000 1,000 Supplies Common Stock 1,200 15,000 Equipment Retained Earnings 22,000 24,300 $47,000 $47,000 During December, the company completed the following summary transactions. Paid $1,600 for salaries due employees, of which $600 is for December and $1,000 is for November salaries payable. Dec. 6 Received $1,900 cash from customers in payment of account (no discount allowed) Sold merchandise for cash $6,30oo. The cost of the merchandise sold was $4,100. 10 Purchased merchandise on account from Hecht Co. $9,00o, terms 2/10, n/30. 13 Purchased supplies for cash $2,000. 15 Sold merchandise on account $12,000, terms 3/10, n/30. The cost of the merchandise sold was $8,000. 18 Paid salaries $1,800. 20 Paid Hecht Co. in full, less discount. 23 Received collections in full, less discounts, from customers billed on December 18 27 Adjustment data: 1. Accrued salaries payable $800. 2. Depreciation $200 per month 3. Supplies on hand $1,500. 4. Income tax due and unpaid at December 31 is $200. 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, Sales Discounts, Supplies Expense, Income Tax Expense, and Income Taxes Payable (c) Journalize and post adjusting entries. (d) Prepare an adjusted trial balance (d) Totals $65,500 (e) Prepare an income statement and a retained earnings statement for December and a classified balance sheet at December 31. (e) Net income $540Step by Step Solution
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