Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.) The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of

image text in transcribedimage text in transcribedimage text in transcribed

Required information [The following information applies to the questions displayed below.) The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020. Credits Debits 5,900 2,900 5,900 11,900 Account Title Cash Accounts receivable Inventory Equipment Accumulated depreciation Accounts payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Advertising expense Totals 4,400 3,900 10,000 8,300 0 OOOO 26,600 26,600 The following transactions occurred during January 2021: Jan. 1 Sold merchandise for cash, $4,400. The cost of the merchandise was $2,900. The company uses the perpetual inventory system. 2 Purchased equipment on account for $6,400 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 $5,900. The cost of the merchandise was $3,700. 10 Purchased merchandise on account for $9,950. 13 Purchased equipment for cash, $800. 16 Paid the entire amount due to the Strong Company. 18 Received $5,800 from customers on account. 20 Paid $800 to the owner of the building for January's rent. 30 Paid employees $3,900 for salaries for the month of January. 31 Paid a cash dividend of $1,000 to shareholders. 1. & 3. Enter the beginning balances as of January 1, 2021 and post the entries to T-accounts. (Enter the date of the transaction in the column next to the amount.) Cash Accounts Receivable Beg. bal. Beg. bal. End. bal. End. bal. Inventory Equipment Beg. bal. Beg. bal. End. bal. End. bal. Accounts Payable Accumulated Depreciation Beg. bal. Beg. bal. End. bal. End. bal. Common Stock Dividends Beg. bal. Beg. bal. End. bal. End. bal. Retained Earnings Sales Revenue Beg. bal. Beg. bal. End. bal. End. bal. Cost of Goods Sold Rent Expense Beg. bal. Beg. bal. End. bal. End. bal. Salaries Expense Advertising Expense Beg bal. Beg bal. End. bal. End. bal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CISA Certified Information Systems Auditor Bundle

Authors: Peter H. Gregory

1st Edition

1260459861, 978-1260459869

More Books

Students also viewed these Accounting questions

Question

What is float? Why is it important to cash management?

Answered: 1 week ago

Question

7. What decisions would you make as the city manager?

Answered: 1 week ago

Question

8. How would you explain your decisions to the city council?

Answered: 1 week ago