Question

Comprehensive Problem 8 On December 1, 2017, Fullerton Company had the following account balances. Debit Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurance Equipment Credit $17,800 Accumulated Depreciation-Equipment $2,900 6,100 64,500 $73,500 2,000 Accounts Payable 7,400 Owner's Capital 17,000 1,700 27,600 $73,500 During December, the company completed the following transactions. Dec. 7 Received $3,500 cash from customers in payment of account (no discount allowed). 12 Purchased merchandise on account from Vance Co. $12,400, terms 1/10, n/30. 17 Sold merchandise on account $15,000, terms 2/10, n/30. The cost of the merchandise sold was $9,s0. 19 Paid salaries $2,100. 22 Paid Vance Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17. 31 Received $2,600 cash from customers in payment of account (no discount allowed). Adjustment data: 1. Depreciation $200 per month. 2. Insurance expired $400 ournalize the December transactions. (Assume a perpetual inventory system.) (Credit account titles are automa Date Account Titles and Explanation Debit Credit

Answer 1

In the books of Fullerton Company:
S. No.	Date	Account Titles	Debit	Credit
	2017		$	$
1	Dec-07	Cash	3,500
		Accounts Receivable		3,500
2	Dec-12	Inventory	12,400
		Accounts Payable - Vance Co.		12,400
3	Dec-17	Accounts Receivable	15,000
		Sales Revenue		15,000
		Cost of Goods Sold	9,800
		Inventory		9,800
4	Dec-19	Salaries and Wages Expense	2,100
		Cash		2,100
5	Dec-22	Accounts Payable - Vance Co.	12,400
		Cash		12,400
6	Dec-26	Cash	14,700
		Sales Discounts	300
		Accounts Receivable		15,000
7	Dec-31	Cash	2,600
		Accounts Receivable		2,600
	Fullerton Company Bank Reconciliation Statement $ $ Balance as per bank 24,174 Add: Deposits in Transit 2,600 NSF charge 650 3,250 27,424 Deduct: Note collected by bank 2,000 Checks outstanding 1,200 -3,200 Balance as per books 24,224 Cash Beg 17800 4 2100 1 3500 5 12400 6 14700 7 2600 24100 Note Receivable Beg 2000 Account Receivable Beg 7400 1 3500 3 15000 6 15000 7 2600 1300 Inventory Beg 17000 3 9800 2 12400 19600 Prepaid Insurance Beg 1700 1700 Cost of Goods Sold 3 9800 9800 Equipment Beg 27600 27600 Accumulated Depreciation-Equipment Beg 2900 2900 Accoutn Payable 5 12400 Beg 6100 2 12400 6100 Owner's Capital Beg 64500 64500 Sales Revenue 3 15000 15000 Sales Discount 6 300 300 Salaries & Wages Expense 4 2100 2100