Question

Comprehensive Accounting Cycle Review 5-1 (Part Level Submission)
Description / Instructions: Please notice that Part 2 which required posting regular journal entries has only been assigned 01 points. Please hit the submit button 3 times for Part 2 instead of doing the posting. Because of the minimal points, it will not affect your overall score for this problem. (It is not possible to assign it zero points.) Comprehensive Accounting Cycle Review 5-1 (Part Level Submission) On December 1, 2017, Devine Distributing Company had the following account balances. Cash Accounts Receivable Inventory Supplies Equipment Debit $7,000 5,100 11,900 1,500 23,100 $48,600 Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Common Stock Retained Earnings Credit $2,310 4,800 1,100 15,300 25,090 $48,600 During December, the company completed the following summary transactions. Dec. 6 8 10 13 15 18 20 23 27 Paid $1,600 for salaries due employees, of which $500 is for December and $1,100 is for November salaries payable. Received $2,000 cash from customers in payment of account (no discount allowed). Sold merchandise for cash $7,000. The cost of the merchandise sold was $3,800. Purchased merchandise on account from Hecht Co. $8,600, terms 2/10, n/30. Purchased supplies for cash $1,800. Sold merchandise on account $12,800, terms 3/10, n/30. The cost of the merchandise sold was $8,200. Paid salaries $1,700. Paid Hecht Co. in full, less discount. Received collections in full, less discounts, from customers billed on December 18.

Answer 1

a.) JOURNAL ENTRIES

Date	Account Title and Explanation	Debit $	Credit $
Dec. 6	Salaries expense	500
	Salaries payable	1,100
	Cash		1,600
	(To record payment of Salary for the month of December and November payable)
Dec. 8	Cash	2,000
	Account receivables		2,000
	(To record amount received from account receivables)
Dec. 10	Cash	7,000
	Sales		7,000
	(To record cash sale of merchandise )
Dec. 13	Inventory Purchase	8,600
	Account payables		8,600
	(To record purchase of merchandise on account - 2/10, N/30)
Dec. 15	Supplies	1,800
	Cash		1,800
	(To record cash puchase of supplies )
Dec. 18	Account receivables	12,800
	Sales		12,800
	(To record sale of merchandise on account - 3/10, N/30)
	Cost of Goods sold	8,200
	Inventory		8,200
	(To record cost booking for Sales of Merchandise)
Dec. 20	Salaries expense	1,700
	Cash		1,700
	(To record salaries paid)
Dec. 23	Account payables	8,600
	Cash (8,600-172)		8,428
	Discount received (8,600*2%)		172
	(To record payment to Hechit Co. after adjusting the discount amount)
Dec. 27	Cash (12,800-384)	12,416
	Discount allowed (12,800*3%)	384
	Account receivables		12,800
	(To record receipt of collection after adjusting discount)

c.) ADJUSTING JOURNAL ENTRIES:

	Account Title and Explanation	Debit $	Credit $
1	Salaries expense	500
	Salaries payable		500
	(To record Provision for Accrued salaries for the period)
2	Depreciation Expenses	210
	Accumulated Depreciation -Office Equipment		210
	(To record provision for Depreciation for the period)
3	Supplies Expenses (1500+1800-1600)	1,700
	Supplies		1,700
	(To record supplies expenses for the period)
4	Income tax expenses	190
	Income tax expenses Payable		190
	(To record accrued income tax expenses due for the period)