Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020. Account Title Debits Credits Cash 5,800 Accounts receivable
The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020.
Account Title | Debits | Credits | ||||
Cash | 5,800 | |||||
Accounts receivable | 2,800 | |||||
Inventory | 5,800 | |||||
Equipment | 11,800 | |||||
Accumulated depreciation | 4,300 | |||||
Accounts payable | 3,800 | |||||
Accrued liabilities | 0 | |||||
Common stock | 10,000 | |||||
Retained earnings | 8,100 | |||||
Sales revenue | 0 | |||||
Cost of goods sold | 0 | |||||
Salaries expense | 0 | |||||
Rent expense | 0 | |||||
Advertising expense | 0 | |||||
Totals | 26,200 | 26,200 | ||||
The following transactions occurred during January 2021:
Jan. | 1 | Sold merchandise for cash, $4,300. The cost of the merchandise was $2,800. The company uses the perpetual inventory system. | ||
2 | Purchased equipment on account for $6,300 from the Strong Company. | |||
4 | Received a $100 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 $5,800. The cost of the merchandise was $3,600. | |||
10 | Purchased merchandise on account for $9,900. | |||
13 | Purchased equipment for cash, $700. | |||
16 | Paid the entire amount due to the Strong Company. | |||
18 | Received $5,600 from customers on account. | |||
20 | Paid $700 to the owner of the building for Januarys rent. | |||
30 | Paid employees $3,800 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.
4. Prepare an unadjusted trial balance as of January 31, 2021.
Step 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