Question

Comprehensive Accounting Cycle Review 5-02 (Part Level Submission) On November 1, 2022, Marin had the following account balances. The company uses the perpetual inventory method. Cash Accounts Receivable Supplies Equipment Debit $27,000 6,720 2,580 75,000 $111,300 Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Credit $3,000 10,200 12,000 5,100 60,000 21,000 $111,300 During November, the following summary transactions were completed. Nov. 8 10 11 12 15 19 20 22 25 27 28 29 29 29 29 Paid $10,650 for salaries due employees, of which $5,550 is for November and $5,100 is for October. Received $5,700 cash from customers in payment of account. Purchased merchandise on account from Dimas Discount Supply for $24,000, terms 2/10, n/30. Sold merchandise on account for $16,500, terms 2/10, n/30. The cost of the merchandise sold was $12,000. Received credit from Dimas Discount Supply for merchandise returned $900. Received collections in full, less discounts, from customers billed on sales of $16,500 on November 12. Paid Dimas Discount Supply in full, less discount. Received $6,900 cash for services performed in November. Purchased equipment on account $15,000. Purchased supplies on account $5,100. Paid creditors $9,000 of accounts payable due. Paid November rent $1,125. Paid salaries $3,900. Performed services on account and billed customers $2,100 for those services. Received $2,025 from customers for services to be performed in the future.

Answer 1

Since its perpetual inventory system, Inventory accounts is used instead of Purchases and Returns accounts.

Please check entries highlighted in orange color!

Marin Journal entries Date Account 8-Nov Salaries and Wages expense Salaries and Wages Payable Credit Calculation Debit $ 5,550 $ 5,100 Cash $ 10,650 $ 5,700 10-Nov Cash Accounts Receivable $ 5,700 $ 24,000 11-Nov Inventory Accounts Payable $ 24,000 $ 16,500 12-Nov Accounts Receivable Sales Revenue $ 16,500 $ 12,000 Cost of Goods Sold Inventory $ 12,000 $ 900 15-Nov Accounts Payable Inventory $ 900 19-Nov Cash Sales Discounts Accounts Receivable $ $ 16,170 330 =16,500*2% $ 16,500 $ 23,100 20-Nov Accounts Payable Cash Inventory =24,000-900 $ 22,638 $ 462 =23,100*2% $ 6,900 22-Nov Cash Service Revenue $ 6,900 $ 15,000 25-Nov Equipment Accounts Payable $ 15,000 $ 5,100 27-Nov Supplies Accounts Payable $ 5,100 $ 9,000 28-Nov Accounts Payable Cash $ 9,000 $ 1,125 29-Nov Rent expense Cash $ 1,125 $ 3,900 29-Nov Salaries and Wages expense Cash $ 3,900 $ 2,100 29-Nov Accounts Receivable Service Revenue $ 2,100 $ 2,025 29-Nov Cash Unearned Service Revenue $ 2,025

Credit Marin T Accounts Date Debit Date Credit Cash Op bal $ 27,000 8-Nov $ 10,650 10-Nov $ 5,700 20-Nov $ 22,638 19-Nov $ 16,170 28-Nov $ 9,000 22-Nov $ 6,900 29-Nov $ 1,125 29-Nov $ 2,025 29-Nov $ 3,900 Date Debit Date Credit Date Debit Date Credit Accounts Receivable Inventory Op bal $ 6,720 10-Nov $ 5,700 Op bal $ . 12-Nov $ 16,500 19-Nov $ 16,500 11-Nov $ 24,000 12-Nov $ 12,000 29-Nov $ 2,100 15-Nov $ 900 20-Nov $ 462 Date Debit Date Supplies Op bal $ 2,580 27-Nov $ 5,100 Bal. Bal. $ 10,482 Equipment Op bal $ 75,000 25-Nov $ 15,000 Bal. $ 3,120 Accumulated Depreciation-Equipment Op bal $3,000 $ - Bal. $ 10,638 Accounts Payable Op bal $10,200 15-Nov $ 900 11-Nov $ 24,000 20-Nov $ 23,100 25-Nov $ 15,000 28-Nov $ 9,000 27-Nov $ 5,100 $ 7,680 Unearned Service Revenue Op bal $ 12,000 29-Nov $ 2,025 S - $ 3,000 $ 21,300 $ 14,025 Bal. $ 90,000 Salaries and Wages Payable 8-Nov $ 5,100 Op bal $ 5,100 $ - Bal. Common Stock Op bal Bal. Retained Earnings Op bal Income Summary $60,000 S - $ - $ 21,000 $ - $ - Bal. $ 21,000 S Bal. Service Revenue 22-Nov $ 6,900 29-Nov $ 2,100 $ - Bal. $ 60,000 Salaries and Wages expense -Nov $ 5,550 29-Nov $ 3,900 $ - Rent expense 29-Nov $ 1,125 8 Bal. $ 9,000 Sales Revenue 12-Nov $ 16,500 Bal. $ 9,450 Cost of Goods Sold 12-Nov $ 12,000 Bal. $ 1,125 Sales Discounts 19-Nov $ 330 $ 16,500 Bal. $ 12,000 Bal. $ 330