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The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020. Account Title Debits Credits Cash 5,700 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 | 5,700 | |||||
Accounts receivable | 2,700 | |||||
Inventory | 5,700 | |||||
Equipment | 11,700 | |||||
Accumulated depreciation | 4,200 | |||||
Accounts payable | 3,700 | |||||
Accrued liabilities | 0 | |||||
Common stock | 9,000 | |||||
Retained earnings | 8,900 | |||||
Sales revenue | 0 | |||||
Cost of goods sold | 0 | |||||
Salaries expense | 0 | |||||
Rent expense | 0 | |||||
Advertising expense | 0 | |||||
Totals | 25,800 | 25,800 | ||||
The following transactions occurred during January 2021:
Jan. | 1 | Sold merchandise for cash, $4,200. The cost of the merchandise was $2,700. The company uses the perpetual inventory system. | ||
2 | Purchased equipment on account for $6,200 from the Strong Company. | |||
4 | Received a $200 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 $5,700. The cost of the merchandise was $3,500. | |||
10 | Purchased merchandise on account for $9,850. | |||
13 | Purchased equipment for cash, $900. | |||
16 | Paid the entire amount due to the Strong Company. | |||
18 | Received $5,400 from customers on account. | |||
20 | Paid $900 to the owner of the building for Januarys rent. | |||
30 | Paid employees $3,700 for salaries for the month of January. | |||
31 | Paid a cash dividend of $900 to shareholders. |
1. & 3. Enter the beginning balances as of January 1, 2021 and post the entries to T-accounts.
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