In: Accounting
The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2017.
Account Title | Debits | Credits | ||||
Cash | 4,400 | |||||
Accounts receivable | 1,400 | |||||
Inventory | 4,400 | |||||
Equipment | 10,400 | |||||
Accumulated depreciation—equipment | 2,900 | |||||
Accounts payable | 2,400 | |||||
Common stock | 9,000 | |||||
Retained earnings | 6,300 | |||||
Sales revenue | 0 | |||||
Cost of goods sold | 0 | |||||
Salaries and wages expense | 0 | |||||
Rent expense | 0 | |||||
Advertising expense | 0 | |||||
Totals | 20,600 | 20,600 | ||||
The following transactions occurred during January 2018:
Jan. | 1 | Sold merchandise for cash, $2,900. The cost of the merchandise was $1,400. The company uses the perpetual inventory system. | ||
2 | Purchased equipment on account for $4,900 from the Strong Company. | |||
4 | Received a $200 bill from the local newspaper for an advertisement that appeared in the paper on January 2. | |||
8 | Sold merchandise on account for $4,400. The cost of the merchandise was $2,200. | |||
10 | Purchased merchandise on account for $9,200. | |||
13 | Purchased equipment for cash, $900. | |||
16 | Paid the entire amount due to the Strong Company. | |||
18 | Received $4,000 from customers on account. | |||
20 | Paid $900 to the owner of the building for January’s rent. | |||
30 | Paid employees $2,400 for salaries and wages for the month of January. | |||
31 | Paid a cash dividend of $900 to shareholders. |
Post the transactions into the appropriate T-accounts. (Enter the date of the transaction in the column next to the amount. Be sure to include beginning balances.)
Answer 1. | |||||||||||||
Cash | Accounts Receivable | Inventory | |||||||||||
Beg. Bal. | 4,400.00 | 900.00 | 13-Jan | Beg. Bal. | 1,400.00 | 4,000.00 | 18-Jan | Beg. Bal. | 4,400.00 | 1,400.00 | 1-Jan | ||
1-Jan | 2,900.00 | 4,900.00 | 16-Jan | 8-Jan | 4,400.00 | 10-Jan | 9,200.00 | 2,200.00 | 8-Jan | ||||
18-Jan | 4,000.00 | 900.00 | 20-Jan | ||||||||||
2,400.00 | 30-Jan | ||||||||||||
900.00 | 31-Jan | ||||||||||||
End. Bal. | 1,300.00 | End. Bal. | 1,800.00 | End. Bal. | 10,000.00 | ||||||||
Equipment | Accumulated Depreciation - Equipment | Accounts Payable | |||||||||||
Beg. Bal. | 10,400.00 | Beg. Bal. | 2,900.00 | Beg. Bal. | 2,400.00 | ||||||||
2-Jan | 4,900.00 | 16-Jan | 4,900.00 | 4,900.00 | 2-Jan | ||||||||
13-Jan | 900.00 | 200.00 | 4-Jan | ||||||||||
9,200.00 | 10-Jan | ||||||||||||
End. Bal. | 16,200.00 | End. Bal. | 2,900.00 | End. Bal. | 11,800.00 | ||||||||
Common Stock | Retained Earnings | Sales Revenue | |||||||||||
Beg. Bal. | 9,000.00 | Beg. Bal. | 6,300.00 | Beg. Bal. | - | ||||||||
2,900.00 | 1-Jan | ||||||||||||
4,400.00 | 8-Jan | ||||||||||||
End. Bal. | 9,000.00 | End. Bal. | 6,300.00 | End. Bal. | 7,300.00 | ||||||||
Cost of Goods Sold | Salaries & Wages Expense | Rent Expense | |||||||||||
Beg. Bal. | - | Beg. Bal. | - | Beg. Bal. | - | ||||||||
1-Jan | 1,400.00 | 30-Jan | 2,400.00 | 20-Jan | 900.00 | ||||||||
8-Jan | 2,200.00 | ||||||||||||
End. Bal. | 3,600.00 | End. Bal. | 2,400.00 | End. Bal. | 900.00 | ||||||||
Advertsing Expense | Cash Dividends | ||||||||||||
Beg. Bal. | - | Beg. Bal. | - | ||||||||||
4-Jan | 200.00 | 31-Jan | 900.00 | ||||||||||
End. Bal. | 200.00 | End. Bal. | 900.00 |