Question

The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020. Credits Debits 5,500 2,500 5,500 11,500 Account Title Cash Accounts receivable Inventory Equipment Accumulated depreciation Accounts payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Advertising expense Totals 4,000 3,500 8,000 9,500 @ 25,000 25,000 The following transactions occurred during January 2021: Jan. 1 Sold merchandise for cash, $4,000. The cost of the merchandise was $2,500. The company uses the perpetual inventory system. 2 Purchased equipment on account for $6,000 from the Strong Company. 4 Received a $100 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2. Sold merchandise on account for $5,500. The cost of the merchandise was 8 $3,300. 10 Purchased merchandise on account for $9,750. 13 Purchased equipment for cash, $700. 16 Paid the entire amount due to the Strong Company. 18 Received $5,000 from customers on account. 20 Paid $700 to the owner of the building for January's rent. 30 Paid employees $3,500 for salaries for the month of January. 31 Paid a cash dividend of $800 to shareholders.

Answer 1

		Sales Revenue A/c
Particulars	Amount	Date	Particulars	Amount	Date
			By Cash A/c	4000	1-Jan
			By Accounts Receivable A/c	5500	8-Jan
		Equipment A/c
Particulars	Amount	Date	Particulars	Amount	Date
To Balance b/d	11500	1-Jan
To Accounts Payable A/c	6000	2-Jan
To Cash A/c	700	13-Jan
		Advertising Expenses A/c
Particulars	Amount	Date	Particulars	Amount	Date
To Accounts Payable A/c	100	4-Jan
		Accumulated Depreciation A/c
Particulars	Amount	Date	Particulars	Amount	Date
			By Balance b/d	4000	1-Jan
		Common Stock A/c
Particulars	Amount	Date	Particulars	Amount	Date
			By Balance b/d	8000	1-Jan

	Cash A/c
Particulars	Amount	Date	Particulars	Amount	Date
To Balance b/d	5500	1-Jan	By Equipment A/c	700	13-Jan
To Sales Revenue A/c	4000	1-Jan	By Accounts Payable A/c	6000	16-Jan
To Accounts Receivable A/c	5000	18-Jan	By Rent Expenses A/c	700	20-Jan
			By Salaries Expenses A/c	3500	30-Jan
			By Dividend A/c	800	31-Jan
	Accounts Payable A/c
Particulars	Amount	Date	Particulars	Amount	Date
To Cash A/c	6000	16-Jan	By Balance b/d	3500	1-Jan
			By Equipment A/c	6000	2-Jan
			By Advertising Expenses A/c	100	4-Jan
			By Inventory A/c	9750	10-Jan
	Accounts Receivable A/c
Particulars	Amount	Date	Particulars	Amount	Date
To Balance b/d	2500	1-Jan	By Cash A/c	5000	18-Jan
To Sales Revenue A/c	5500	8-Jan
	Dividend A/c
Particulars	Amount	Date	Particulars	Amount	Date
To Cash A/c	800	31-Jan
	Retained Earnings A/c
Particulars	Amount	Date	Particulars	Amount	Date
			By Balance b/d	9500	1-Jan

	Cost of Goods Sold A/c
Particulars	Amount	Date	Particulars	Amount	Date
To Inventory A/c	2500	1-Jan
To Inventory A/c	3300	8-Jan
	Inventory A/c
Particulars	Amount	Date	Particulars	Amount	Date
To Balance b/d	5500	1-Jan	By Cost of Goods Sold A/c	2500	1-Jan
To Accounts Payable A/c	9750	10-Jan	By Cost of Goods Sold A/c	3300	8-Jan
	Rent Expenses A/c
Particulars	Amount	Date	Particulars	Amount	Date
To Cash A/c	700	20-Jan
	Salaries Expenses A/c
Particulars	Amount	Date	Particulars	Amount	Date
To Cash A/c	3500	30-Jan