Question

In: Accounting

On December 1, 2020, Blossom Company had the following account balances. Debit Credit Cash $7,600 Accumulated...

On December 1, 2020, Blossom Company had the following account balances.

Debit

Credit

Cash $7,600 Accumulated Depreciation—Equipment $2,420
Accounts Receivable 4,800 Accounts Payable 5,000
Inventory 11,500 Salaries and Wages Payable 1,000
Supplies 1,300 Common Stock 30,000
Equipment 24,200 Retained Earnings 10,980
$49,400 $49,400

During December, the company completed the following summary transactions.
Dec. 6 Paid $1,800 for salaries and wages due employees, of which $800 is for December and $1,000 is for November salaries and wages payable.
8 Received $1,800 cash from customers in payment of account (no discount allowed).
10 Sold merchandise for cash $6,500. The cost of the merchandise sold was $3,800.
13 Purchased merchandise on account from Maglio Co. $8,600, terms 2/10, n/30.
15 Purchased supplies for cash $1,600.
18 Sold merchandise on account $12,000, terms 3/10, n/30. The cost of the merchandise sold was $8,100.
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. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Solutions

Expert Solution

Date Particulars Debit Credit
December
6 Salaries and Wages Payable $                1,000
Salaries and Wages Expense $                   800
Cash $               1,800
(Being Salaries paid including arrears)
8 Cash $                1,800
Accounts Receivable $               1,800
(Being cash received frm customers)
10 Cash $                6,500
Sales Revenue $               6,500
(Being goods sold)
10 Cost of Goods Sold $                3,800
Inventory $               3,800
(Being cost of goods sold recognized)
13 Inventory $                8,600
Accounts Payable-Maglio Co. $               8,600
(Being Inventory purchased)
15 Supplies $                1,600
Cash $               1,600
(Being Supplies purchased)
18 Accounts Receivable $             12,000
Sales Revenue $             12,000
(Being goods sold)
18 Cost of Goods Sold $                8,100
Inventory $               8,100
(Being cost of goods sold recognized)
20 Salaries and Wages Expense $                1,500
Cash $               1,500
(Being Salaries paid )
23 Accounts Payable-Maglio Co. $                8,600
Cash $               8,428
Discount received $                   172
(Being cash paid to Maglio Co. - 2% discount receivd)
27 Cash $             11,640
Discount Allowed $                   360
Accounts Receivable $             12,000
(Being cash received from customer. - 3% discount allowed)

--

Hope you Understood.
If you have any doubt please leave a comment.
Thank you.


Related Solutions

On December 1, 2022, Matthias Company had the following account balances. Debit Credit Cash $5,200 Accumulated...
On December 1, 2022, Matthias Company had the following account balances. Debit Credit Cash $5,200 Accumulated Depreciation—Equipment $1,300 Accounts Receivable 3,900 Accounts Payable 3,100 Inventory 1,680 * Common Stock 21,400 Equipment 22,000 Retained Earnings 6,980 $32,780 $32,780 *(2,800 x $0.60) The following transactions occurred during December. Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.78 per unit. 5 Sold 4,100 units of inventory on account for $0.90 per unit. (Matthias sold 2,800 of the $0.60...
On December 1, 2020, Rodriguez Distributing Company had the following account balances. Debit Credit Cash $...
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...
On December 1, 2020, Lily Company had the account balances shown below. Debit Credit Cash $5,000...
On December 1, 2020, Lily Company had the account balances shown below. Debit Credit Cash $5,000 Accumulated Depreciation—Equipment $1,100 Accounts Receivable 3,200 Accounts Payable 3,200 Inventory 2,700* Owner’s Capital 28,600 Equipment 22,000 $32,900 $32,900 *(4,500 x $0.60) The following transactions occurred during December: Dec. 3 Purchased 4,400 units of inventory on account at a cost of $0.70 per unit. 5 Sold 4,900 units of inventory on account for $0.86 per unit. (Lily sold 4,500 of the $0.60 units and 400...
On December 1, 2020, Lily Company had the account balances shown below. Debit Credit Cash $5,000...
On December 1, 2020, Lily Company had the account balances shown below. Debit Credit Cash $5,000 Accumulated Depreciation—Equipment $1,100 Accounts Receivable 3,200 Accounts Payable 3,200 Inventory 2,700* Owner’s Capital 28,600 Equipment 22,000 $32,900 $32,900 *(4,500 x $0.60) The following transactions occurred during December: Dec. 3 Purchased 4,400 units of inventory on account at a cost of $0.70 per unit. 5 Sold 4,900 units of inventory on account for $0.86 per unit. (Lily sold 4,500 of the $0.60 units and 400...
On December 1, 2017, Prosen Distributing Company had the following account balances. Debit Credit Cash $7,000...
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...
On December 1, 2017, Prosen Distributing Company had the following account balances. Debit Credit Cash $7,500...
On December 1, 2017, Prosen Distributing Company had the following account balances. Debit Credit Cash $7,500 Accumulated Depreciation—Equipment $2,640 Accounts Receivable 4,600 Accounts Payable 4,900 Inventory 12,400 Salaries and Wages Payable 1,000 Supplies 1,400 Common Stock 30,000 Equipment 26,400 Retained Earnings 13,760 $52,300 $52,300 During December, the company completed the following summary transactions. Dec. 6 Paid $1,800 for salaries and wages due employees, of which $800 is for December and $1,000 is for November salaries and wages payable. 8 Received...
On December 1, 2017, Annalise Company had the account balances shown below. Debit Credit Cash $6,800...
On December 1, 2017, Annalise Company had the account balances shown below. Debit Credit Cash $6,800 Accumulated Depreciation—Equipment $1,400 Accounts Receivable 3,900 Accounts Payable 2,900 Inventory 1,500 * Owner’s Capital 29,700 *(3,000 x $0.50) Equipment 21,800 $34,000 $34,000 The following transactions occurred during December: Dec. 3 Purchased 4,200 units of inventory on account at a cost of $0.70 per unit. Dec. 5 Sold 4,700 units of inventory on account for $0.92 per unit. (It sold 3,000 of the $0.50 units...
On December 1, 2017, Waylon Company had the account balances shown below.     Debit     Credit...
On December 1, 2017, Waylon Company had the account balances shown below.     Debit     Credit Cash $ 4,800  Accumulated Depreciation—Equipment $ 1,500 Accounts Receivable 3,900  Accounts Payable 3,000 Inventory 1,800* Common Stock 10,000 Equipment  21,000  Retained Earnings  17,000     $31,500      $31,500 * ( 3,000 × $ 0.60 ) (3,000×$0.60) The following transactions occurred during December. Dec. 3. Purchased 4,000 units of inventory on account at a cost of $0.72 per unit.   Dec 5. Sold 4,400 units of...
On December 31st, 2020, Winterfell Corporation had the following account balances before adjustments: Debit Credit Accounts...
On December 31st, 2020, Winterfell Corporation had the following account balances before adjustments: Debit Credit Accounts Receivable 325,000 Allowance for Doubtful Accounts 1,250 Credit Sales 1,645,000 Required Assume that uncollectible accounts are estimated to be 5% of accounts receivables. Prepare the necessary adjusting entry with December 31, 2020 as the entry date. Following the adjusting entry, what is the total that will appear on the Balance Sheet for Allowance for Doubtful Account? Assume that uncollectible accounts are estimated to be...
On December 1, 2012, Bluemound Company had the following account balances. Debits Credits Cash $18,200 Accumulated...
On December 1, 2012, Bluemound Company had the following account balances. Debits Credits Cash $18,200 Accumulated Depreciation— Notes Receivable 2,200 Equipment $ 3,000 Accounts Receivable 7,500 Accounts Payable 6,100 Inventory 16,000 Owner’s Capital 64,400 Prepaid Insurance 1,600 $73,500 Equipment 28,000 $73,500 During December, the company completed the following transactions. Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed). 12 Purchased merchandise on account from Klump Co. $12,000, terms 1/10, n/30. 17 Sold merchandise on account...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT