Question

The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020.

Account Title	Debits			Credits
Cash		5,100
Accounts receivable		2,100
Inventory		5,100
Equipment		11,100
Accumulated depreciation					3,600
Accounts payable					3,100
Common stock					9,000
Retained earnings					7,700
Sales revenue					0
Cost of goods sold		0
Salaries expense		0
Rent expense		0
Advertising expense		0
Totals		23,400			23,400

The following transactions occurred during January 2021:

Jan.		1		Sold merchandise for cash, $3,600. The cost of the merchandise was $2,100. The company uses the perpetual inventory system.
		2		Purchased equipment on account for $5,600 from the Strong Company.
		4		Received a $200 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2.
		8		Sold merchandise on account for $5,100. The cost of the merchandise was $2,900.
		10		Purchased merchandise on account for $9,550.
		13		Purchased equipment for cash, $900.
		16		Paid the entire amount due to the Strong Company.
		18		Received $4,200 from customers on account.
		20		Paid $900 to the owner of the building for January’s rent.
		30		Paid employees $3,100 for salaries for the month of January.
		31		Paid a cash dividend of $900 to shareholders.

rev: 06_05_2020_QC_CS-213977

Required:
2. Prepare general journal entries to record each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Requirement 2:

Date	Account title and explanation	Debit	Credit
Jan 1	Cash	$3,600
	Sales revenue		$3,600
	[To record cash sales]
	Cost of goods sold	$2,100
	Inventory		$2,100
	[To record cost of goods sold]
Jan 2	Equipment	$5,600
	Accounts payable		$5,600
	[To record purchase of equipment on account]
Jan 4	Advertising expense	$200
	Accounts payable		$200
	[To record advertising expense]
Jan 8	Cash	$5,100
	Sales revenue		$5,100
	[To record cash sales]
	Cost of goods sold	$2,900
	Inventory		$2,900
	[To record cost of goods sold]
Jan 10	Inventory	$9,550
	Accounts payable		$9,550
	[To record purchase of inventory on account]
Jan 13	Equipment	$900
	Cash		$900
	[To record purchase of equipment for cash]
Jan 16	Accounts payable	$5,600
	Cash		$5,600
	[To record cash paid for accounts payable]
Jan 18	Cash	$4,200
	Accounts receivable		$4,200
	[To recod collections from customers]
Jan 20	Rent expense	$900
	Cash		$900
	[To record payment of rent]
Jan 30	Salaries expense	$3,100
	Cash		$3,100
	[To record payment of salaries]
Jan 31	Cash dividends	$900
	Cash		$900
	[To record payment of cash dividends]