Question

Required Information Problem 2-2 (Algo) Accounting cycle through unadjusted trial balance [LO2-3, 2-4) [The following Information applies to the questions displayed below.] The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020. Credits Debits 5, 3ee 2,300 5,300 11,300 3,800 3,380 Account Title Cash Accounts receivable Inventory Equipment Accumulated depreciation Accounts payable Accrued liabilities Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Advertising expense Totals 10, eee 7,100 The following transactions occurred during January 2021: Jan. 1 Sold merchandise for cash, $3,800. The cost of the merchandise was $2,380. The company uses the perpetual inventory system. 2 Purchased equipment on account for $5,800 from the Strong Company. 4 Received a $150 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2. 8 Sold merchandise on account for $5,380. The cost of the merchandise was $3,100. 10 Purchased merchandise on account for $9,650. 13 Purchased equipment for cash, $888. 16 Paid the entire amount due to the Strong Company. 18 Received $4,600 from customers on account. 20 Paid $800 to the owner of the building for January's rent. 30 Paid employees $3,300 for salaries for the month of January. 31 Paid a cash dividend of $1,000 to shareholders. Problem 2-2 (Algo) Parts 1 and 3

Answer 1

T-Accounts:

Cash					Accounts Receivable
Beg. Bal.	5,300	800	Jan.13		Beg. Bal.	2,300
Jan.1	3,800	5,800	Jan.16		Jan.8	5,300	4,600	Jan.18
Jan.18	4,600	800	Jan.20
		3,300	Jan.30
		1,000	Jan.31
End. Bal.	2,000				End. Bal.	3,000
Inventory					Equipment
Beg. bal.	5,300				Beg. Bal.	11,300
Jan.10	9,650	2,300	Jan.1		Jan.2	5,800
		3,100	Jan.8		Jan.13	800
End. Bal.	9,550				End. Bal.	17,900
Accumulated Depreciation					Accounts payable
Beg. Bal.		3,800			Beg. Bal.		3,300
					Jan.16	5,800	5,800	Jan.2
							150	Jan.4
							9,650	Jan.10
End. bal.		3,800			End. bal.		13,100
Common stock					Accrued Liabilities
Beg. Bal.		10,000			Beg. Bal.		0
End. Bal.		10,000			End. Bal.		0
Dividends					Retained Earnings
Beg. Bal.	0				Beg. Bal.		7,100
Jan.31	1,000
End. Bal.	1,000				End. Bal.		7,100
Sales revenue					Cost of goods sold
Beg. Bal.		0			Beg. Bal.	0
		3,800	Jan.1		Jan.1	2,300
		5,300	Jan.8		Jan.8	3,100
End. Bal.		9,100			End. Bal.	5,400
Rent Expense					Salaries expense
Beg. Bal.	0				Beg. Bal.	0
Jan.20	800				Jan.30	3,300
End. Bal.	800				End. Bal.	3,300
Advertising Expense
Beg. Bal.	0
Jan.4	150
End. Bal.	150