Question

1. Enter beginning balances in the T-accounts from the Beginning Balance Sheet, all accounts have normal balances. Common Stock has 200,000 shares issued and outstanding. 2. Additional information: Company uses a perpetual inventory system (discounts and freight are recorded in the inventory account). Suppliers offer a 2% discount; company does not offer discounts to customers. No adjustment for inventory is needed. 3. Record the following summarized August transactions using the general journal provided. Use a blank line between transactions. Use the account titles as shown in the T- accounts, do not add any accounts.

Answer 1

Answer-1 & 4:

Account payable 38300 13300 35000 Cash 142000 35000 110000 6000 Account receivable 13250 35000 25000 Wages payable 1200 1200 Common stock 200000 3200 10000 6000 12000 37534 Inventory 40000 12500 35000 55000 3200 766 224266 10000 3250 9934 200000 Fixed assets 60000 Retained earnings 34750 Acc. Depreciation 6000 Sales revenue 25000 110000 2000 COGS 12500 55000 Wages expense 8800 137000 67500 8800 60000 Prepaid insurance 34750 Prepaid rent 12000 6000 Unearned revenue 2000 6000 6000 6000 12000 4000

Answer- 3:

	Account Title	Debit	Credit
(a).	Inventory	35,000
	Account payable		35,000
(b).	Inventory	3,200
	Cash		3,200
(c).	Account receivable	25,000
	Sales revenue		25,000
(c).	Cost of goods sold	12,500
	Inventory		12,500
(d).	Wages expense	8,800
	Wages payable	1,200
	Cash		10,000
(e).	Cash	35,000
	Account receivable		35,000
(f).	Cash	110,000
	Sales revenue		110,000
(f).	Cost of goods sold	55,000
	Inventory		55,000
(g).	Prepaid insurance	6,000
	Cash		6,000
(h).	Prepair rent	12,000
	Cash		12,000
(i)	Cash	6,000
	Unearned revenue		6,000
(j).	Account payable	38,300
	Inventory		766
	Cash		37,534
(k).	Unearned revenue	2,000
	Sales revenue		2,000

Answer- 5:

Credit 200,000 Unadjusted Trial Balance Account Title Debit Cash $ 224,266 Account receivable 3,250 Wages payable Inventory 9,934 Common stock Fixed assets 60,000 Acc. Depreciation Sales revenue Cost of goods sold 67,500 Wages expense 8,800 Prepaid insurance 6,000 Prepaid rent 12,000 Unearned revenue Account payable Retained earnings Total $ 391,750 6,000 137,000 4,000 100001 34750 $ 391,750