Question

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.)

Answer 1

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)

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