Question

Comprehensive Accounting Cycle Review 6

On December 1, 2017, Carla Vista Co. had the account balances shown below.

		Debits				Credits
Cash		$4,640		Accumulated Depreciation—Equipment		$1,380
Accounts Receivable		3,760		Accounts Payable		2,900
Inventory (2,700 x $0.50)		1,350		Common Stock		10,800
Equipment		19,400		Retained Earnings		14,070
		$29,150				$29,150

The following transactions occurred during December.

Dec. 3		Purchased 3,700 units of inventory on account at a cost of $0.78 per unit.
5		Sold 4,100 units of inventory on account for $0.90 per unit. (It sold 2,700 of the $0.50 units and 1,400 of the $0.78.)
7		Granted the December 5 customer $270 credit for 300 units of inventory returned costing $240. These units were returned to inventory.
17		Purchased 2,200 units of inventory for cash at $0.80 each.
22		Sold 2,100 units of inventory on account for $0.88 per unit. (It sold 2,100 of the $0.78 units.)

Adjustment data:

1.		Accrued salaries and wages payable $400.
2.		Depreciation on equipment $200 per month.
3.		Income tax expense was $200, to be paid next year.

Enter the December 1 balances in the ledger T-accounts and post the December transactions. (Post entries in the order of journal entries presented above.)

Answer 1

Date Particular Account Payalile Amount Date Particular Dee I By bal hild 5786 Du 3 By Purchases chmannt 2900 2886 Dee 31 To bal eld 15786 15786 Date Dec 1. Dec 5 Dec 22 Particular To bal 61d To Sales To Sales dccant Paratite Receinatele Amennt Dato Particules 3760 Dec 7 By Sales outurn 3690 Dec 31 By bal old 1848 Amount 270 9028 1929 e Date Dec of Particular To bal old To Purchase 19298 I Cash All Amount Date Particulars 4640 Deel by Purchase le 31 by bal eld Amount 1760 2880 4640 14640

LU Particulars Accumulated Dep Amount Dali Particulars Bus by bal 6ld 1580 Dec 31 By Depreciation Amount 1380 200 To balch 1580 1580 canning Date Dec 1 Dees Dec 22 Rec 31 Retained Dal Particulars Amount Bu 3 To Purchase 2886 Dec 7 To sales return 270 Dec 17 To Purchase 1760 Dec 31 To Wages Payable 400 Dec 31 To Income Tax Pay all 200 Dec 31 To Dapsueralite 200 Bu 31 To bal old 14698 20414 Particular By bal b/d By sales Amount 14070 3690 1848 By Change in Inv- 806 20414 Calculation of closing Inuentary opening Inventory + Purchases + Sales neturn - Sales = 1350 = 4646 = 240 z (4080) 2152 Cash Accounts Receivable Inventory Equipment Deleits 2880 9028 2156 19400 Cudits 1580 5786 Accumulated Depreciation Account Payabile Commen stock Retained Earning Wages Payalih o Income Tax Payalle 10800 14698 Hop 200