In: Accounting
On December 1, 2020, Rodriguez Distributing Company
had the following account balances.
Debit Credit
Cash $
7,200
Accumulated Depreciation—
Accounts Receivable
4,600
Equipment $ 2,200
Inventory
12,000
Accounts Payable 4,500
Supplies
1,200
Salaries and Wages Payable 1,000
Equipment
22,000
Owner’s Capital 39,300
$47,000
$47,000
During December, the company completed the following summary
transactions.
Dec. 6. Paid $1,600 for salaries and wages due employees, of which
$600 is for December and
$1,000 is for November salaries and wages payable.
8. Received $2,200 cash from customers in payment of account (no
discount allowed).
10. Sold merchandise for cash $6,300. The cost of the merchandise
sold was $4,100.
13. Purchased merchandise on account from Boehm Co. $9,000, terms
2/10, n/30.
15. Purchased supplies for cash $2,000.
18. Sold merchandise on account $15,000, terms 3/10, n/30. The cost
of the merchandise sold
was $10,000.
20. Paid salaries and wages $1,800.
23. Paid Boehm Co. in full, less discount.
27. Received collections in full, less discounts, from customers
billed on December 18.
Adjustment data:
1. Accrued salaries and wages payable $840.
2. Depreciation $200 per month.
3. Supplies on hand $1,500.
Instructions
a. Journalize the December transactions using a perpetual inventory
system.
b. Enter the December 1 balances in the ledger T-accounts and post
the December transactions. Use
Cost of Goods Sold, Depreciation Expense, Salaries and Wages
Expense, Sales Revenue, Sales
Discounts, and Supplies Expense.
c. Journalize and post adjusting entries.
d. Prepare an adjusted trial balance.
e. Prepare an income statement and an owner’s equity statement for
December and a classifi ed balance
sheet at December 31.
Answer to Question A:
Answer to Question A:
Answer to Question C:
Answer to Question B and C:
Answer to Question B and C:
Answer to Question D:
Answer to Question E:
Answer to Question E: