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The following information applies to the questions displayed below.] The following is the post-closing trial balance...

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.

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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

ekkarill92 answered 1 year ago
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