Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please write out solutions P 2-2 Accounting cycle through unadjusted trial balance QL02-3, 102-4 The following is the post-closing trial balance for the Whitlow Manufacturing
Please write out solutions
P 2-2 Accounting cycle through unadjusted trial balance QL02-3, 102-4 The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020. Account Title Debits Credits Cash 5,000 Accounts receivable 2.000 Inventory 5,000 11,000 Equipment Accumulated depreciation 3,500 Accounts payable 3,000 Accrued liabilities -0- Common stock 10,000 6,500 Retained earnings Sales revenue -0- Cost of goods sold -0- Salaries expense -0- Rent expense -0- Advertising expense -0- Totals 23,000 23,000 The following transactions occurred during January 2021: Jan. 1 Sold merchandise for cash, $3,500. The cost of the merchandise was $2,000. The company uses the perpetual inventory system. 2 Purchased equipment on account for $5,500 from the Strong Company. 4 Received a $150 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2. 8 Sold merchandise on account for $5,000. The cost of the merchandise was $2,800. 10 Purchased merchandise on account for $9,500. 13 Purchased equipment for cash, $800. 16 Paid the entire amount due to the Strong Company. 18 Received $4,000 from customers on account. 20 Paid $800 to the owner of the building for January's rent. 30 Paid employees $3,000 for salaries for the month of January. 31 Paid a cash dividend of $1,000 to shareholders. Required: 1. Set up T-accounts and enter the beginning balances as of January 1, 2021. 2. Prepare general journal entries to record each transaction. Omit explanations. 3. Post the entries to T-accounts. 4. Prepare an unadjusted trial balance as of January 31, 2021Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started