Comprehensive Problem 7 (Part Level Submission)

On December 1, 2017, Fullerton Company had the following account balances.

Debit Credit

Cash $18,200 Accumulated DepreciationâEquipment $3,000

Notes Receivable 2,200 Accounts Payable 6,100

Accounts Receivable 7,500 Common Stock 50,000

Inventory 16,000 Retained Earnings 14,400

Prepaid Insurance 1,600 $73,500

Equipment 28,000

$73,500

During December, the company completed the following transactions.

Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed).

12 Purchased merchandise on account from Vance Co. $12,000, terms 1/10, n/30.

17 Sold merchandise on account $16,000, terms 2/10, n/30. The cost of the merchandise sold was $10,000.

19 Paid salaries $2,200.

22 Paid Vance Co. in full, less discount.

26 Received collections in full, less discounts, from customers billed on December 17.

31 Received $2,700 cash from customers in payment of account (no discount allowed).

Adjustment data:

1. Depreciation $200 per month.

2.
Insurance expired $400.

Enter the December 1 balances in the ledger T-accounts and post the December transactions I need to make a T-account chart

Question

Comprehensive Problem 7 (Part Level Submission)

On December 1, 2017, Fullerton Company had the following account balances.

	Debit		Credit
Cash	$18,200	Accumulated DepreciationâEquipment	$3,000
Notes Receivable	2,200	Accounts Payable	6,100
Accounts Receivable	7,500	Common Stock	50,000
Inventory	16,000	Retained Earnings	14,400
Prepaid Insurance	1,600		$73,500
Equipment	28,000
	$73,500

During December, the company completed the following transactions.

Dec. 7		Received $3,600 cash from customers in payment of account (no discount allowed).
12		Purchased merchandise on account from Vance Co. $12,000, terms 1/10, n/30.
17		Sold merchandise on account $16,000, terms 2/10, n/30. The cost of the merchandise sold was $10,000.
19		Paid salaries $2,200.
22		Paid Vance Co. in full, less discount.
26		Received collections in full, less discounts, from customers billed on December 17.
31		Received $2,700 cash from customers in payment of account (no discount allowed).

Adjustment data:

1.		Depreciation $200 per month.
2.		Insurance expired $400.

Enter the December 1 balances in the ledger T-accounts and post the December transactions I need to make a T-account chart

Nov. 8	Paid $1,150 for salaries due employees, of which $550 is forOctober salaries payable and $600 is for November.
10	Received $1,400 cash from customers in payment of account.
11	Purchased merchandise on account from Midwest Wholesale Supplyfor $6,000, terms 2/10, n/30.
12	Sold merchandise on account for $4,500, terms 2/10, n/30. Thecost of the merchandise sold was $3,000.
15	Received credit from Midwest Wholesale Supply for merchandisereturned $200.
19	Received collections in full, less discounts, from customersbilled on sales of $4,500 on November 12.
20	Paid Midwest Wholesale Supply in full, less discount. (Donâtforget the return on the 15^th.)
22	Received $1,300 cash for services performed in November.
25	Purchased equipment on account $3,000.
27	Purchased supplies on account $1,300.
28	Paid creditors $2,500 of accounts payable due.
29	Paid November rent $300.
29	Paid salaries $1,100.
29	Performed services on account and billed customers for servicesprovided $1,900.
29	Received $550 from customers for services to be provided in thefuture.

1.	Supplies on hand are valued at $1,600.
2.	Accrued salaries payable as of 11/30 are $500.
3.	Depreciation for the month is $750.
4.	$650 of the unearned service revenue has not been earned bymonth end.

May 1		Purchased merchandise on account from Hauke Wholesale Supplyfor $8,400, terms 1/10, n/30.
2		Sold merchandise on account for $5,200, terms 2/10, n/30. Thecost of the merchandise sold was $3,900.
5		Received credit from Hauke Wholesale Supply for merchandisereturned $300.
9		Received collections in full, less discounts, from customersbilled on May 2.
10		Paid Hauke Wholesale Supply in full, less discount.
11		Purchased supplies for cash $1,215.
12		Purchased merchandise for cash $4,187.
15		Received $311 refund for return of poor-quality merchandisefrom supplier on cash purchase.
17		Purchased merchandise from Friedrich Distributors for $4,600,terms 2/10, n/30.
19		Paid freight on May 17 purchase $338.
24		Sold merchandise for cash $7,428. The cost of the merchandisesold was $5,537.
25		Purchased merchandise from Fasteners Inc. for $1,080, terms3/10, n/30.
27		Paid Friedrich Distributors in full, less discount.
29		Made refunds to cash customers for returned merchandise $127.The returned merchandise had cost $95.
31		Sold merchandise on account for $1,729, terms n/30. The cost ofthe merchandise sold was $1,121.

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