Question

Accounting Cycle Review 6 a- f
On December 1, 2020, Bonita Company had the account balances shown below.

Debit
Credit
Cash       $5,300       Accumulated Depreciation—Equipment       $1,300
Accounts Receivable       4,000       Accounts Payable       3,600
Inventory       2,760*       Owner’s Capital       30,160
Equipment       23,000                 
$35,060               $35,060

*(4,600 x $0.60)

The following transactions occurred during December:

Dec. 3       Purchased 4,800 units of inventory on account at a cost of $0.74 per unit.
5       Sold 5,300 units of inventory on account for $0.90 per unit. (Bonita sold 4,600 of the $0.60 units and 700 of the $0.74.)
7       Granted the December 5 customer $150 credit for 200 units of inventory returned costing $100. These units were returned to inventory.
17       Purchased 2,300 units of inventory for cash at $0.80 each.
22       Sold 3,600 units of inventory on account for $0.95 per unit. (Bonita sold 3,600 of the $0.74 units.)

Adjustment data:

1.       Accrued salaries payable $400.
2.       Depreciation $400 per month.

Correct answer.   Your answer is correct.
      
Journalize the December transactions and adjusting entries, assuming Bonita uses the perpetual inventory method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date
Account Titles and Explanation
Debit
Credit
Entry field with correct answer
Entry field with correct answer
Inventory
Entry field with correct answer
3552
Entry field with correct answer
Entry field with correct answer
Accounts Payable
Entry field with correct answer
Entry field with correct answer
3552
Entry field with correct answer
Entry field with correct answer
Accounts Receivable
Entry field with correct answer
4770
Entry field with correct answer
Entry field with correct answer
Sales Revenue
Entry field with correct answer
Entry field with correct answer
4770
(To record sales revenue.)      
Entry field with correct answer
Entry field with correct answer
Cost of Goods Sold
Entry field with correct answer
3278
Entry field with correct answer
Entry field with correct answer
Inventory
Entry field with correct answer
Entry field with correct answer
3278
(To record cost of goods sold.)      
Entry field with correct answer
Entry field with correct answer
Sales Returns and Allowances
Entry field with correct answer
150
Entry field with correct answer
Entry field with correct answer
Accounts Receivable
Entry field with correct answer
Entry field with correct answer
150
(To record sales returns.)      
Entry field with correct answer
Entry field with correct answer
Inventory
Entry field with correct answer
100
Entry field with correct answer
Entry field with correct answer
Cost of Goods Sold
Entry field with correct answer
Entry field with correct answer
100
(To record cost of sales returns.)
Entry field with correct answer
Entry field with correct answer
Inventory
Entry field with correct answer
1840
Entry field with correct answer
Entry field with correct answer
Cash
Entry field with correct answer
Entry field with correct answer
1840
Entry field with correct answer
Entry field with correct answer
Accounts Receivable
Entry field with correct answer
3420
Entry field with correct answer
Entry field with correct answer
Sales Revenue
Entry field with correct answer
Entry field with correct answer
3420
(To record sales revenue.)      
Entry field with correct answer
Entry field with correct answer
Cost of Goods Sold
Entry field with correct answer
2664
Entry field with correct answer
Entry field with correct answer
Inventory
Entry field with correct answer
Entry field with correct answer
2664
(To record cost of goods sold.)      
Entry field with correct answer
Entry field with correct answer
Salaries and Wages Expense
Entry field with correct answer
400
Entry field with correct answer
Entry field with correct answer
Salaries and Wages Payable
Entry field with correct answer
Entry field with correct answer
400
(To record accrued expense.)      
Entry field with correct answer
Entry field with correct answer
Depreciation Expense
Entry field with correct answer
400
Entry field with correct answer
Entry field with correct answer
Accumulated Depreciation-Equipment
Entry field with correct answer
Entry field with correct answer
400
(To record depreciation expense.)      

Correct answer.   Your answer is correct.
      
Prepare a classified balance sheet at December 31, 2020. (List Current Assets in order of liquidity.)

BONITA COMPANY
Balance Sheet
Entry field with correct answer
Assets
Entry field with correct answer
Entry field with correct answer
Cash
$Entry field with correct answer
3460
Entry field with correct answer
Accounts Receivable
Entry field with correct answer
12040
Entry field with correct answer
Inventory
Entry field with correct answer
2310
Entry field with correct answer          
$Entry field with correct answer
17810
Entry field with correct answer                      
Entry field with correct answer
Equipment
Entry field with correct answer
23000
Entry field with correct answer: Entry field with correct answer
Accumulated Depreciation-Equipment
Entry field with correct answer
1700
Entry field with correct answer
21300
Entry field with correct answer  
$Entry field with correct answer
39110
Liabilities and Owner’s Equity
Entry field with correct answer                      
Entry field with correct answer
Accounts Payable
$Entry field with correct answer
7152
Entry field with correct answer
Salaries and Wages Payable
Entry field with correct answer
400
Entry field with correct answer          
$Entry field with correct answer
7552
Entry field with correct answer                      
Entry field with correct answer
Owner's Capital
Entry field with correct answer
31558
Entry field with correct answer  
$Entry field with correct answer
39110

LINK TO TEXT

  

Partially correct answer.   Your answer is partially correct. Try again.
      
(e)

Compute ending inventory and cost of goods sold under FIFO, assuming Bonita Company uses the periodic inventory system.

Ending Inventory      
$Entry field with incorrect answer
2100
Cost of Goods Sold      
$Entry field with incorrect answer
5842

(f)

Compute ending inventory and cost of goods sold under LIFO, assuming Bonita Company uses the periodic inventory system.

Ending Inventory      
$Entry field with correct answer
1800
Cost of Goods Sold      
$Entry field with incorrect answer
5842
Click if you would like to Show Work for this question:  
Open Show Work

LINK TO TEXT

Answer 1