Styles Paragraph December 1: Paid dividends to self in amount of $10,000 Jecember 5: Paid employee for period ending November 30. December 7: Purchased merchandise for resale. See the "Inventory Valuation" tab for details. December 8: Received payments from customers toward accounts receivable in amount of $4,000. December 10: Paid November telephone bill. December 11: Purchased baking supplies in amount of $7.000 from vendor on account. December 13: Paid on supplies vendor account in amount of $5,000. December 15: Accrued employee wages for period of December 1 through December 15. December 15: Paid rent on bakery space $1.500. December 15: Recorded merchandise sales transaction. See the "Inventory Valuation" tab for details. December 15: Recorded impact of sales transaction on COGS and the inventory asset. See the "Inventory Valuation" tab for details. December 20: Paid employee for period ending December 15. December 20: Purchased merchandise inventory for resale to customers. See the "inventory Valuation" tab for details. December 24: Recorded sales of merchandise to customers. See the MInventory Valuation" tab for details. December 24: Recorded impact of sales transaction on COGS and the inventory asset. See the "Inventory Valuation" tab for details. December 30: Purchased merchandise inventory for resale to customers. See the "Inventory Valuation" tab for details. December 31: Accrued employee wages for period of December 16 through December 31. December 31: Total December bakery sales were $25,000 (56,000 of these sales on accounts receivable) 1. On December 31, the following adjustments must be made: Depreciation of baking equipment transferred to company on October 13. Assume half month of depreciation in October using the straight-line method. Accrue interest for note payable. Assume a full month of interest for October 16% annual interest on $10,000 loan) Record insurance used for the year. Actual baking supplies on hand as of December 31 are $1,100. Office supplies on hand as of December 31 are $50. Ending Inventory Purchases No. of Items Purchases No. of Unit Price Total Price Items 10 $ 6.00 $ 60.00 Sales No. of Unit Price Total Price Items 12/7: 10 boxes purchased at $6 Date Dr Cr Unit Price Total Price 10 $ 6.00 $ 60.00 7-Dec 60.00 Date 7-Dec Merchandise Inventory (10 x $6) Cash Purchased inventory 60.00 15-Dec 8 $ 6.00 $ 48.00 2 $ 6.00 $ 12.00 12/20:20 boxes purchased at $6.10 12/30:25 boxes purchased at $6.05 Sales -selling price, $8.50 a box 12/15: 8 boxes 12/24: 18 boxes 20-Dec 20 $ 6.10 $ 122.00 68.00 2 $ 6.00 $ 12.00 20 $ 6.10 $ 122.00 22 $ 134.00 15-Dec Cash (8 x $8.50) Merchandise Sales Revenue Record sale of inventory 68.00 24-Dec 48.00 2 $ 6.00 $ 12.00 16 $ 6.10 $ 97.60 18 $ 109.60 4 $ 6.10 $ 24.40 15-Dec Cost of Goods Sold (8 X $6) Merchandise Inventory Recorded the cost of goods sold 48.00 30-Dec 25 $ 6.05 $ 151.25 122.00 4 $ 6.10 $ 24.40 25 $ 6.05 $ 151.25 29 $ 175.65 20-Dec Merchandise Inventory (20 x $6.10 ) Cash 122.00 Net Inventor 0 Y 55 $ 333.25 26 $ 157.60 29 $ 175.65 153.00 24-Dec Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 21 22 23 153.00 109.60 24 25 26 24-Dec cost of Goods Sold (2 x $6)+(16 x $6.10) Merchandise Inventory Recorded the cost of goods sold 109.60 27 28 29 30-Dec Merchandise Inventory (25 x $6.05) Cash 151.25 151.25 30 31 32 33 34 35 36 37 Styles Paragraph December 1: Paid dividends to self in amount of $10,000 Jecember 5: Paid employee for period ending November 30. December 7: Purchased merchandise for resale. See the "Inventory Valuation" tab for details. December 8: Received payments from customers toward accounts receivable in amount of $4,000. December 10: Paid November telephone bill. December 11: Purchased baking supplies in amount of $7.000 from vendor on account. December 13: Paid on supplies vendor account in amount of $5,000. December 15: Accrued employee wages for period of December 1 through December 15. December 15: Paid rent on bakery space $1.500. December 15: Recorded merchandise sales transaction. See the "Inventory Valuation" tab for details. December 15: Recorded impact of sales transaction on COGS and the inventory asset. See the "Inventory Valuation" tab for details. December 20: Paid employee for period ending December 15. December 20: Purchased merchandise inventory for resale to customers. See the "inventory Valuation" tab for details. December 24: Recorded sales of merchandise to customers. See the MInventory Valuation" tab for details. December 24: Recorded impact of sales transaction on COGS and the inventory asset. See the "Inventory Valuation" tab for details. December 30: Purchased merchandise inventory for resale to customers. See the "Inventory Valuation" tab for details. December 31: Accrued employee wages for period of December 16 through December 31. December 31: Total December bakery sales were $25,000 (56,000 of these sales on accounts receivable) 1. On December 31, the following adjustments must be made: Depreciation of baking equipment transferred to company on October 13. Assume half month of depreciation in October using the straight-line method. Accrue interest for note payable. Assume a full month of interest for October 16% annual interest on $10,000 loan) Record insurance used for the year. Actual baking supplies on hand as of December 31 are $1,100. Office supplies on hand as of December 31 are $50. Ending Inventory Purchases No. of Items Purchases No. of Unit Price Total Price Items 10 $ 6.00 $ 60.00 Sales No. of Unit Price Total Price Items 12/7: 10 boxes purchased at $6 Date Dr Cr Unit Price Total Price 10 $ 6.00 $ 60.00 7-Dec 60.00 Date 7-Dec Merchandise Inventory (10 x $6) Cash Purchased inventory 60.00 15-Dec 8 $ 6.00 $ 48.00 2 $ 6.00 $ 12.00 12/20:20 boxes purchased at $6.10 12/30:25 boxes purchased at $6.05 Sales -selling price, $8.50 a box 12/15: 8 boxes 12/24: 18 boxes 20-Dec 20 $ 6.10 $ 122.00 68.00 2 $ 6.00 $ 12.00 20 $ 6.10 $ 122.00 22 $ 134.00 15-Dec Cash (8 x $8.50) Merchandise Sales Revenue Record sale of inventory 68.00 24-Dec 48.00 2 $ 6.00 $ 12.00 16 $ 6.10 $ 97.60 18 $ 109.60 4 $ 6.10 $ 24.40 15-Dec Cost of Goods Sold (8 X $6) Merchandise Inventory Recorded the cost of goods sold 48.00 30-Dec 25 $ 6.05 $ 151.25 122.00 4 $ 6.10 $ 24.40 25 $ 6.05 $ 151.25 29 $ 175.65 20-Dec Merchandise Inventory (20 x $6.10 ) Cash 122.00 Net Inventor 0 Y 55 $ 333.25 26 $ 157.60 29 $ 175.65 153.00 24-Dec Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 21 22 23 153.00 109.60 24 25 26 24-Dec cost of Goods Sold (2 x $6)+(16 x $6.10) Merchandise Inventory Recorded the cost of goods sold 109.60 27 28 29 30-Dec Merchandise Inventory (25 x $6.05) Cash 151.25 151.25 30 31 32 33 34 35 36 37