Question

Comprehensive Problem 5 

On December 1, 2017, Rodriguez Distributing Company had the following account balances.

During December, the company completed the following summary transactions.

Dec. 6 Paid $ 1,500 for salaries and wages due employees, of which $ 500 is for December and $ 1,000 is for November salaries and wages payable.

8 Received $ 1,800 cash from customers in payment of account (no discount allowed).

10 Sold merchandise for cash $ 6,500. The cost of the merchandise sold was $ 3,800.

13 Purchased merchandise on account from Boehm co. $ 8,500, terms 2 / 10, n / 30 .

15 Purchased supplies for cash $ 1,600.

18 Sold merchandise on account $ 12,300, terms 3 / 10, n / 30. The cost of the merchandise sold was $ 8,000.

20 Paid salaries and wages $ 1,500.

23 Paid Boehm Co. in full, less discount.

27 Received collections in full, less discounts, from customers billed on December 18.

Answer 1

Journal Account Titles and Debit Credit No. Date ion 6-Dec Salaries and wages expense Salaries and wages payable 500 1,000 Cash To record the payment of salaries and wages) 1,500 8-Dec Cash 1,800 Accounts receivable 1,800 To record the collection from debtors) 10-Dec Cash 6,500 Sales Revenue 6,500 To record the cash sales) Cost of goods sold 3,800 Inventory To record the cost of goods sold) 3,800 13-Dec Purchase 8,500 Accounts payable To record the credit purchase) 8,500 Inventory 8,500 Purchase 8,500 (To record the transfer of inventory to purchase) 15-Dec Supplies 1,600 Cash To record the purchase of supplies on cash) 1,600 18-Dec Accounts receivable 12,300 12,300 Sales revenue To record the credit sales)

Cost of goods sold 8,000 Inventory To record the cost of goods sold) 8,000 20-Dec Prepaid Salaries and wages 1,500 Cash To record the salaries and wages paid) 1,500 23-Dec Accounts payable 8,500 Purchase discounts (8500*296) Cash 170 8,330 To record the payment to supplier) 27-Dec Cash 11,931 369 Sales discount (12300*3%) To record the collection from customer) Adjusting Entri Accounts receivable 12,300 es: Salaries and wages expense 500 Salaries and wages payable To record the salaries and wages accrued) 500 Depreciation expense 200 Accum. Dep Equipment To record the depreciation expense for December) 200 Supplies expense (2800-1500) 1,300 Supplies To record the supplies consumed) 1,300

Posting the transaction and adjusting entries into the corresponding ledger accounts Cash s Receivable Salaries and wages Cost of goods Beginning Bal. Accounts receivable Sales Revenue Accounts Receivable Beginning Bal. 4,600 Cash Beginning Bal. 11,500 Sold 7,000 expense 500 1,800 3,800 Salaries and wages Cost of goods 1,800 payable 6,500 Supplies 12,300 Cash 1,000 1,600 Sales revenue 11,931 Зб9 Purchase 8,500 Sold 8,000 Sales discount Prepaid Salaries and 11,931 Wages 1,500 8,330 14,301 $27,231 Accounts Payable Ending Bal Ending Bal Ending Bal 2,800 $16,900 8,200 20,000 $ 27,231 16,900 20,000 Supplies CR CR Cost of s Sold Beginning Bal. Cash 1,200 Supplies Expense 1,600 Beginning Bal Beginning Bal. Inventory Inventory 1,300 22,000 3,800 8,000 1,500 $2,800 Ending Bal Ending Bal Ending Bal. 22.000 11,800 11,800 $22,000 $22,000 $11,800 2,800

Salaries and Wa id Salaries and Wa CR CR Beginning Bal. Beginning Bal. Beginning Bal Inventory 500 Accounts payable 8,500 1,500 Salaries and wages payable 500 Ending Bal. Ending Bal Ending Bal. 1,500 S 1,500 1,000 1,000 $8,500 $1,500 1,000 8,500 Sales Discounts Depreciation E>x Supplies CR Beginning Bal. Beginning Bal Beginning Bal. Dep Supplies Equipment 200 1,300 Accounts Receivable Ending Bal. Ending Bal. Ending Bal. 369 $369 200 1,300 S369 $ 1,300 1,300

ble CR Accounts CR Beginning Bal. Depreciation Expense 2,200 discounts 170 Beginning Bal 4,500 8,500 513,000 Beginning Bal 38,600 200 Cash 8,330 Purchase 4,500 Ending Bal Ending Bal. Ending Bal. 2,400 2,400 38,600 38,600 5 2,400 $38,600 13,000 Sales Revenue CR Salaries and Wages Payable Beginning Bal Beginning Bal Cash 1,000 Beginning Bal 1,000 Salaries and Wages Expense 6,500 12,300 170 Cash Accounts Receivable Accounts Payable 500 Ending Bal. 18,800 18,800 Ending Bal. 170 170 Ending Bal 500 1,500 18,800 170 1,500

RODRIGUEZ DISTRIBUTION COMPANY Adjusted Trial Balance as on December 31,2017 Account Title Debits Credits Cash Accounts Receivable Inventory Supplies Equipment Cost of goods Sold Salaries and Wages Expense Purchase Prepaid Salari and Wages Sales Discounts Depreciation Expense Supplies Expense Accum. Dep- Equipment Accounts Payable Owner's Capital Sales Revenue Purchase Discounts Salaries and Wages Payable 14,301 2,800 8,200 1,500 22,000 11,800 1,000 Taking the final balance from the T-Accounts. As per policy, I can solve four sub parts of a question 1,500 369 200 1,300 2,400 4,500 38,600 18,800 170 500 tivate Wind 64,970 $ 64,970