Question

IPRLHENSIVE ACCOUNTING CYCLE R ACRS-1 On December 1, 2017, Devine Distributing Company had the following account balances. Debit 7,200 Accumulated Depreciation- 12,000 Accounts Payable Credit Cash Accounts Receivable Inventory Supplies Equipment Equipment S 2,200 4,500 1,000 15,000 24,300 $47,000 1.200 22,000 Salaries and Wages Payable Common Stock $47000 Retained Earnings During December, the company completed the following summary transactions. Dec. 6 Paid $1.600 for salaries due employees, of which $600 is for December and $1,000 is for November salaries payable. allowed). 10 Sold merchandise for cash $6,300. The cost of the merchandise sold was $4,100. 13 Purchased merchandise on account from Hecht Co. $9,000, terms 2/10, n/30. 15 Purchased supplies for cash $2.000. 18 Sold merchandise on account $12,000, terms V10, n/30. The cost of the mer- chandise sold was $8,000. 20 Paid salaries $1,800. 23 Paid Hecht Co. in full, less discount. 27 Received collections in full, less discounts, from customers billed on December 18. Adjustment data: 1. Accrued salaries payable $800. 2. Depreciation $200 per month. 3. Supplies on hand $1,500. 4. Income tax due and unpaid at December 31 is $200. Instructions (a) Journalize the December transactions using a perpetual inventory system. (b) Enter the December 1 bałances in the ledger Taccounts and post the December trans- actions. Use Cost of Goods Sold, Depreciation Expense. Salaries and Wages Expense Sales Revenue, Sales Discounts, Supplies Expense, Income Tax Expense, and Income Taxes Payable. (c) Journalize and post adjusting entries (d) Prepare an adjusted trial balance. (e) Prepare an income statement and a retained earnings statement for December and a classified balance sheet at December 31.

Please answer questions D and E

Answer 1

Answer