Question

The following information applies to the questions displayed below.] The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020. Account Title Debits Credits Cash 5,000 Accounts receivable 2,000 Inventory 5,000 Equipment 11,000 Accumulated depreciation 3,500 Accounts payable 3,000 Common stock 10,000 Retained earnings 6,500 Sales revenue 0 Cost of goods sold 0 Salaries expense 0 Rent expense 0 Advertising expense 0 Totals 23,000 23,000

The following transactions occurred during January 2021: Jan. 1 Sold merchandise for cash, $3,500. The cost of the merchandise was $2,000. The company uses the perpetual inventory system. 2 Purchased equipment on account for $5,500 from the Strong Company. 4 Received a $150 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 $5,000. The cost of the merchandise was $2,800. 10 Purchased merchandise on account for $9,500. 13 Purchased equipment for cash, $800. 16 Paid the entire amount due to the Strong Company. 18 Received $4,000 from customers on account. 20 Paid $800 to the owner of the building for January's rent. 30 Paid employees $3,000 for salaries for the month of January. 31 Paid a cash dividend of $1,000 to shareholders.

Answer 1

Date	Account Titles	Debit	Credit
Jan-01	Cash	$      3,500
	Sales Revenue		$      3,500
	Cost of Goods Sold	$      2,000
	Inventory		$      2,000
Jan-02	Equipment	$      5,500
	Accounts Payable		$      5,500
Jan-04	Advertisement Expense	$          150
	Accounts Payable / Cash		$          150
Jan-08	Accounts Receivable	$      5,000
	Sales Revenue		$      5,000
	Cost of Goods Sold	$      2,800
	Inventory		$      2,800
Jan-10	Inventory	$      9,500
	Accounts Payable		$      9,500
Jan-13	Equipment	$          800
	Cash		$          800
Jan-16	Accounts Payable	$      5,500
	Cash		$      5,500
Jan-18	Cash	$      4,000
	Accounts Receivable		$      4,000
Jan-20	Rent Expense	$          800
	Cash		$          800
Jan-30	Salaries Expense	$      3,000
	Cash		$      3,000
Jan-31	Dividend	$      1,000
	Cash		$      1,000