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28 Sep 2019
This problem is taking from Financial Accounting: Tools forBusiness Decision Making, 5th edition, kieso, weygandt,kimmel
Debit
cash 4800
accounts receivable 3900
merchandise inventory 1800
equipment 21,000
___________
$31,500
Credit
Accumulated Depreciation - Equipment 1500
Accounts payable 3000
common stock 10,000
Retained Earnings 17,000
_________
$31,500
following transactions occurred during december:
dec. 3) - purchased 4000 units on account at a cost of $0.75 perunit.
5) - sold 4500 units on account for $0.90 per unit. (it sold 3000of the $0.60 units and 1500 of the $0.75)
7) - granted the december 5 customer $180 credit for 200 unitsreturned cost $150. These units were returned to inventory
17) - Purchased 2400 units for cash at $0.80 each
22) - Sold 2000 units on account for $0.95 per unit. (it sold 2000of the $0.75 units)
Adjustment Data:
1) accrued salaries payable $400
2) depreciation $200 per month
3) income tax expense was $175, to be paid next year
Instructions:
a) journalize the december transactions and adjusting entriesassuming gonzalez uses the perpetual inventory method
b) enter the december 1 balances in the ledger T accounts and postthe december transactions. in addition to the accounts mentionedabove, use the following additional accounts: Cost of goods sold,depreciation expense, salaries expense, salaries payable, sales,sales returns and allowances, income tax expense, and income taxpayable.
c) prepare an adjusted trial balance as of december 31, 2010
d) prepare an income statement for december 2010 and aclassifiedbalance sheet at december 21, 2010
e) compute ending inventory and cost of goods sold under FIFOassuming gonzalez company uses the periodic inventory system
f) compute ending inventory and cost of goods sold under LIFOassuming gonzalez company uses the periodic inventory system
This problem is taking from Financial Accounting: Tools forBusiness Decision Making, 5th edition, kieso, weygandt,kimmel
Debit
cash 4800
accounts receivable 3900
merchandise inventory 1800
equipment 21,000
___________
$31,500
Credit
Accumulated Depreciation - Equipment 1500
Accounts payable 3000
common stock 10,000
Retained Earnings 17,000
_________
$31,500
following transactions occurred during december:
dec. 3) - purchased 4000 units on account at a cost of $0.75 perunit.
5) - sold 4500 units on account for $0.90 per unit. (it sold 3000of the $0.60 units and 1500 of the $0.75)
7) - granted the december 5 customer $180 credit for 200 unitsreturned cost $150. These units were returned to inventory
17) - Purchased 2400 units for cash at $0.80 each
22) - Sold 2000 units on account for $0.95 per unit. (it sold 2000of the $0.75 units)
Adjustment Data:
1) accrued salaries payable $400
2) depreciation $200 per month
3) income tax expense was $175, to be paid next year
Instructions:
a) journalize the december transactions and adjusting entriesassuming gonzalez uses the perpetual inventory method
b) enter the december 1 balances in the ledger T accounts and postthe december transactions. in addition to the accounts mentionedabove, use the following additional accounts: Cost of goods sold,depreciation expense, salaries expense, salaries payable, sales,sales returns and allowances, income tax expense, and income taxpayable.
c) prepare an adjusted trial balance as of december 31, 2010
d) prepare an income statement for december 2010 and aclassifiedbalance sheet at december 21, 2010
e) compute ending inventory and cost of goods sold under FIFOassuming gonzalez company uses the periodic inventory system
f) compute ending inventory and cost of goods sold under LIFOassuming gonzalez company uses the periodic inventory system
Debit
cash 4800
accounts receivable 3900
merchandise inventory 1800
equipment 21,000
___________
$31,500
Credit
Accumulated Depreciation - Equipment 1500
Accounts payable 3000
common stock 10,000
Retained Earnings 17,000
_________
$31,500
following transactions occurred during december:
dec. 3) - purchased 4000 units on account at a cost of $0.75 perunit.
5) - sold 4500 units on account for $0.90 per unit. (it sold 3000of the $0.60 units and 1500 of the $0.75)
7) - granted the december 5 customer $180 credit for 200 unitsreturned cost $150. These units were returned to inventory
17) - Purchased 2400 units for cash at $0.80 each
22) - Sold 2000 units on account for $0.95 per unit. (it sold 2000of the $0.75 units)
Adjustment Data:
1) accrued salaries payable $400
2) depreciation $200 per month
3) income tax expense was $175, to be paid next year
Instructions:
a) journalize the december transactions and adjusting entriesassuming gonzalez uses the perpetual inventory method
b) enter the december 1 balances in the ledger T accounts and postthe december transactions. in addition to the accounts mentionedabove, use the following additional accounts: Cost of goods sold,depreciation expense, salaries expense, salaries payable, sales,sales returns and allowances, income tax expense, and income taxpayable.
c) prepare an adjusted trial balance as of december 31, 2010
d) prepare an income statement for december 2010 and aclassifiedbalance sheet at december 21, 2010
e) compute ending inventory and cost of goods sold under FIFOassuming gonzalez company uses the periodic inventory system
f) compute ending inventory and cost of goods sold under LIFOassuming gonzalez company uses the periodic inventory system
Patrina SchowalterLv2
28 Sep 2019
