Question

can anyone illustrate the T-accounts that would correspond with this post closing trial balance and the transactions?

The Post-Closing Trial Balance of Salami, Inc. as of December 31, 2011 appears below. READ EACH DESCRIPTION CAREFULLY and record the transaction for its ending impact for 2012 NO QUESTIONS WILL BE ANSWERED. PRINT CLEARLY and USE COMPLETE Account Titles. 496,000 499,000 50,000 525,000 150,000 875,000 215,000 Account Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Rent Prepaid Insurance Inventory Furniture and Fixtures Accumulated Depreciation Accounts Payable ! Wages Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Wages Expense Rent Expense Depreciation Expense Utility Expense Bad Debt Expense Insurance Expense Dividends Totals 85,000 750,000 80,000 1,200,000 595,000 2.760,000 2,760,000 1) Purchase of inventory for resale was $5,000,000. All purchases were made on account. 2) Payments for inventory purchased on account were $5,210,000. 3) Sales of merchandise totaled $11,200,000. Of this amount, 20% of the sales were made on account the remaining sales were paid in cash. 4) The cost of the merchandise sold during the year was $4,000,000 5) Collections on Accounts Receivable during the year were $2,380,000. 6) Cash payments to employees during the year, totaled $1,215,000. This was both towards unpaid salaries at the beginning of the year and for salaries earned during 2012 7) Paid $100,000 cash for utilities during the year. 8) During the year $56,000 of customer accounts were written off as uncollectible. Scanneth CamScanner CS

Answer 1

Preparation of T Accounts: To To To Particulars Opening Balance Cash Received on Sales Cash received from AR Cash Account Amount 496000 By 8960000 By 2380000 By By By Particulars Opening Balance Sales on Account Accounts Receivables A mount Particulars 499000 B y Cash Paid 2240000 By Prov for Doubtful Debts Amount 2380000 56000 Ву Particulars Paid t/w Purchases Wages Wages Utilities Prepaid Insurance Dividends Amount 5210000 80000 1135000 100000 480000 4000000 Closing Balance 303000 By Closing Balance 831000 11836000 11836000 2739000 2739000 Amount Particulars Accounts Receivables Provision for Doubtful Debts Amount Particulars 56000 By Opening Balance By Bad debts Amount 50000 46600 To Prepaid Rent Particulars By Rent Expense Particulars Opening Balance Amount 300000 To 525000 Closing Balance 40600 By Closing Balance 225000 96600 96600 525000 525000

| Inventory Amount 875000 By 5000000 Particulars Opening Balance Purchase on account Particulars COGS Ple Amount 4000000 Furniture and Fixtures Amount Particulars 215000 Particulars Opening Balance Closing Balance 1875000 5875000 5875000 Accounts Particulars Accumulated Depreciation Amount Particulars By Opening Balance 85000 Amount 85000 Particulars Cash Paid Amount 5210000 To Closing Balance 85000 To Closing Balance 500g 85000

Particulars Wages paid Particulars Amount Wages Payable Amount 80000 By By 75000 Particulars Opening Balance Wages Expense Amount 80000 75000 Common Stock Particulars By Opening Balance Amount 1200000 To Closing Balance 1200000 Closing Balance 155000 155000 1200000 1200000 Particulars Closing Balance Retained Earnings Amount 595000 Particulars Opening Balance Amount 595000 Particulars Opening Balance Cash Prepaid Insurance Amount Particulars 150000 By Insurance Expense 480000 Amount 150000 250000 Το. 595000 595000 By Closing Stock 200000 630000 000