Question

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

		Debit				Credit
Cash		$7,000		Accumulated Depreciation—Equipment		$2,420
Accounts Receivable		5,500		Accounts Payable		4,900
Inventory		12,400		Salaries and Wages Payable		1,000
Supplies		1,200		Common Stock		30,000
Equipment		24,200		Retained Earnings		11,980
		$50,300				$50,300

During December, the company completed the following summary transactions.

Dec. 6		Paid $1,550 for salaries and wages due employees, of which $550 is for December and $1,000 is for November salaries and wages payable.
8		Received $1,900 cash from customers in payment of account (no discount allowed).
10		Sold merchandise for cash $7,000. The cost of the merchandise sold was $4,000.
13		Purchased merchandise on account from Maglio Co. $8,600, terms 2/10, n/30.
15		Purchased supplies for cash $1,800.
18		Sold merchandise on account $12,700, terms 3/10, n/30. The cost of the merchandise sold was $8,000.
20		Paid salaries and wages $1,500.
23		Paid Maglio Co. in full, less discount.
27		Received collections in full, less discounts, from customers billed on December 18.

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.

Answer 1