Question

The following intormation applies to the questions displayed below 7 The following is the post-closing trial balance for the Whitow Manufacturing Corporation as of December 31. 2017 Cash 4,200 4,200 10,280 Inventory Equipment Accumulated depreciation-equipment Accounts payable Conmon stock Retained earnings Sales revenue Cost of goods sold Salaries and wages expense Rent expense Advertising expense Totals 2,788 2,200 18,880 4,980 19,880 19,880 The following transactions occurred during January 2018: Jan. 1 Sold merchandise for cash, $2,780. The cost of the merchandise was $1,200. The company uses the perpetual inventory system. 2 Purchased equipment on account for $4,780 from the Strong Company. 4 Received a $150 invoice from the local newspaper requesting payment for an adverti sement that Whitlow placed in the paper on January 2. 8 Sold merchandise on account for $4,280. The cost of the merchandise was $2,eee 10 Purchased merchandise on account for $9,10e. 13 Purchased equipment for cash, $880. 16 Paid the entire anount due to the Strong Company. 18 Received $3,800 from custoners on account. 20 Paid $see to the owner of the building for January's rent. 30 Paid employees $2,200 for solaries and ages for the month of January 31 Paid a cash dividend of $1,000 to shareholders. Prev Next

Answer 1

Solution:

Posting of the transactions during the month of January

Sales Account:

Debit Entry	Amount ($)	Credit Entry	Amount ($)
		Jan 1	$2,700
		Jan 8	$4,200
		Total	$6,900

Cost of Goods Sold Account:

Debit Entry	Amount($)	Credit Entry	Amount ($)
Jan 1	$1,200
Jan 8	$2,000
Total	$3,200

Cash Account:

Debit Entry	Amount ($)	Credit Entry	Amount($)
Opening balance	$4,200	Jan 16	$4,700
Jan 1	$2,700	Jan 20	$800
Jan 18	$3,800	Jan 30	$2,200
		Jan 31	$1,000
		Jan 31 (closing balance)	$2,000
Total	$10,700	Total	$10,700

Merchandise Inventory Account:

Debit Entry	Amount ($)	Credit Entry	Amount($)
Opening balance	$4,200	Jan 1	$1,200
Jan 10	$9,100	Jan 8	$2,000
		Closing balance	$10,100
Total	$13,300	Total	$13,300

Accounts Receivables Account:

Debit Entry	Amount ($)	Credit Entry	Amount($)
Opening balance	$1,200	Jan 18	$3,800
Jan 8	$4,200	Closing balance	$1,600
Total	$5,400	Total	$5,400

Equipment Account:

Debit Entry	Amount ($)	Credit Entry	Amount ($)
Opening balance	$10,200
Jan 2	$4,700
Jan 13	$800	Closing balance	$15,700
Total	$15,700	Total	$15,700

Accounts Payable Account:

Debit Entry	Amount ($0	Credit Entry	Amount ($)
Jan 16	$4,700	Opening balance	$2,200
Closing balance	$12,250	Jan 2	$4,700
		Jan 4	$150
		Jan 10	$9,100
		Jan 13	$800
Total	$16,950	Total	$16,950

Rent Account:

Debit Entry	Amount($)	Credit Entry	Amount($)
Jan 20	$800
Total	$800

Advertisement expense Account:

Debit Entry	Amount($)	Credit Entry	Amount($)
Jan 4	$150
Total	$150

Salary & Wages expense Account:

Debit Entry	Amount($)	Credit Entry	Amount($)
Jan 30	$2,200
Total	$2,200

Dividend expense Account:

Debit Entry	Amount($)	Credit Entry	Amount($)
Jan 31	$1,000
Total	$1,000