Print by: Erica Burkett AC201:AC2010LS2A2020 Principles Financial Accounting / AC201 - Extra Credit Opportunity 2 (Chapter 5 Comprehensive Problem) *Comprehensive Accounting Cycle Review 5-1 (Part Level Submission) On December 1, 2017, Devine Distributing Company had the following account balances Debit Credit Cash $7,100 Accumulated Depreciation-Equipment $2,380 Accounts Receivable 5,200 Accounts Payable 4,600 Inventory 12,400 Salaries and Wages Payable 1,200 Supplies 1,500 Common Stock 15,500 Equipment 23,800 Retained Earnings 26,320 $50,000 $50,000 During December, the company completed the following summary transactions Dec. Paid $1,800 for salaries due employees, of which $600 is for December and $1,200 is for 6 November salaries payable. 8 Received $1,800 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6,500. The cost of the merchandise sold was $3,900. 13 Purchased merchandise on account from Hecht Co. $9,400, terms 2/10, 1/30. 15 Purchased supplies for cash $1,800. 18 Sold merchandise on account $12,500, terms 3/10, n/30. The cost of the merchandise sold was $8,100. 20 Paid salaries $1,500. 23 Paid Hecht Co. in full, less discount. 27 Received collections in full, less discounts, from customers billed on December 18. *(a) Your answer is correct Journalize the December transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 6 Salaries and Wages Expense 800 0 12000 Cash 1800 18000 Dec. 8 Cast *(3) Prepare a classified balance sheet at December 31. (List current assets in order of liquidity.) Assets Liabilities and Stockholders' Equity