Question

On December 1, 2022, Crane Company had the account balances shown below.

Debits

Credits

Cash

$5,080

Accumulated Depreciation—Equipment

$1,480

Accounts Receivable

3,620

Accounts Payable

2,730

Inventory (3,000 x $0.60)

1,800

Common Stock

9,400

Equipment

22,500

Retained Earnings

19,390$33,000$33,000

The following transactions occurred during December.

Dec. 3Purchased 4,000 units of inventory on account at a cost of $0.73 per unit.5Sold 4,400 units of inventory on account for $0.90 per unit. (It sold 3,000 of the $0.60 units and 1,400 of the $0.73.)7Granted the December 5 customer $270 credit for 300 units of inventory returned costing $240. These units were returned to inventory.17Purchased 2,300 units of inventory for cash at $0.80 each.22Sold 2,200 units of inventory on account for $0.90 per unit. (It sold 2,200 of the $0.73 units.)

Adjustment data:

1.Accrued salaries and wages payable $350.2.Depreciation on equipment $200 per month.3.Income tax expense was $220, to be paid next year.

Journalize the December transactions and adjusting entries, assuming Crane Company uses the perpetual inventory method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

Anson Journal Entry A business hansadjon when they Journal Journal is also known as in chronological order in the journal. Known 75 Journalis149. occured are first recorder shi Day Book. Transactions are recortes Recording the entry in Journal is

Cone company Joynal Entries Particulars Poojt () Date December 2glo 2910 2822 O 270 170 3. Merchandjie Inventory 10 (4000 ygjes X 0.73) I to Accounts Paogble Ale | (Being goods purchased on account) 5. Account Receivable Al _ (4900 units X $0.90) Ov / 3960 To Sales Revenue AVC 3960 | (Being goods soll on celis) 5. Git of Goods Sold Als [63000 49 jt X 0.60)+(1400 ynjts X0.73 2.120 To Merchaolise Thueglory Alc | (Being to record cost of goods sol) 7. Sales Rebyuds yad Allowances Al – To Account Recej vall. Als | (Being goods referens 7. Merchandise Inventory Ale - Dr. 240 To cast of Goods soll (Being to record cost of returned inventory) 17 Merchandise Inventory Alc_(2300 yills X 0.80) - On 1840 To Gsh Als 1840 I (Being inventory purchased for cash) Account Receiville No 12200 unis x 0.90) 2 or 1 1980 To Sgles Revenue Ale cBeing goods soll on account) 2. cost of Goods sold Al (2000 unin X o .B on 1606 - To merchantive Inventory (Being to record cost of gools soll) 31. Salerjes guy wages Expense ala - 1 . To salaries and wages Payable Ale .. 310 (Being goorved rolovjes recorded) si Deprecjettin Ako - To Accumulater Depreciation - Equipment Ale cbeing to record depreciation) - Dr220 1. To Income Tax Payalle Alc I akong to record income tyx expense) Tota/ 16908 716408 22 1980 1. GOG - On 350 200 Tax Expense Alo 31. | Income