Re ta ined Farnins 268 Accounting for Merchandising Operations Chapter 5 7 Paid $1,800 to employees. Of this amount, $900 was for an s Other Dec November. Salaries due to employees at the end of each month are owed from Current Liabilities. 9 Received $5,400 from customers as payment on account. of greeting cards. This merchandise had cost $6,000 o prod 12 Sold, for cash, $9,000 14 Purchased additional inventory totaling S $7,000 on account with terms of 2/0 n/45 id cash for supplies (listed as Other Current Assets) in the amount of $600 19 Sold, on account with terms of 2/10, n/30, greeting cards totaling $6,000. Th merchandise had cost $4,000 to produce 21 Paid additional salaries of $1,400. 25 Paid the total owed for the merchandise that was purchased on December 14 28 Received payment in full from the customer that purchased the merchandise on December 19. 31 Depreciation for the month totaled $900. 31 A physical count of inventory and supplies revealed that $13,000 and $2,000 respectively, were on hand at year-end. Assume that Other Current Assets consists on of the cost of supplies. Required a. Prepare journal entries for the December transactions. b. Prepare a classified income statement for the month of December 2015. c. Calculate Kate's gross profit percentage and return on sales ratio for December 2015. EXTENDING YOUR KNOWLEDGE