Question

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The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2017.

Account Title	Debits			Credits
Cash		4,200
Accounts receivable		1,200
Inventory		4,200
Equipment		10,200
Accumulated depreciation—equipment					2,700
Accounts payable					2,200
Common stock					10,000
Retained earnings					4,900
Sales revenue					0
Cost of goods sold		0
Salaries and wages expense		0
Rent expense		0
Advertising expense		0
Totals		19,800			19,800

The following transactions occurred during January 2018:

Jan.		1		Sold merchandise for cash, $2,700. The cost of the merchandise was $1,200. The company uses the perpetual inventory system.
		2		Purchased equipment on account for $4,700 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 $4,200. The cost of the merchandise was $2,000.
		10		Purchased merchandise on account for $9,100.
		13		Purchased equipment for cash, $800.
		16		Paid the entire amount due to the Strong Company.
		18		Received $3,800 from customers on account.
		20		Paid $800 to the owner of the building for January’s rent.
		30		Paid employees $2,200 for salaries and wages for the month of January.
		31		Paid a cash dividend of $1,000 to shareholders.

Required:

2. Prepare general journal entries to record each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

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Solution: Naming convention is not available, can be slightly different ournal Entries Date Account title and explaination bit Credit Jan.01 Cash $2,700 2,700 Sales Revenue To record the sales on cash Cost of goods sold Inventory To record the COGS) S1,200 $1,200 Jan.02 Equipment $ 4,700 4,700 Accounts Payable To record the purchase of equipment on account) Jan.04 Advertising Expense $150 $150 Accounts Payable To record the advertising expense) Jan.08 Accounts Receivable $ 4,200 4,200 Sales Revenue To record the sales on cash Cost of goods sold Inventory To record the COGS) $2,000 2,000 an.10 Inventory $ 9,100 $ 9,100 Accounts Payable To record the purchase of inventory on account) Jan.13Equip 800 Cash 800 To record the purchase of equipment for cash)