Question

Part 2 of 3 Required Information (The following information applies to the questions displayed below.] The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020. Credits points Debits 4,40e 1,400 4.400 10,4ee 2,989 2,400 eBook Account Title Cash Accounts receivable Inventory Equipment Accumulated depreciation Accounts payable Accrued liabilities Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Advertising expense Totals 9,000 6,300 Print 20.680 20,600 The following transactions occurred during January 2021: Jan. 1 Sold merchandise for cash, $2,990. The cost of the merchandise was $1,480. The company uses the perpetual inventory system. 2 Purchased equipment on account for $4,900 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 $4,400. The cost of the merchandise was $2,280. 10 Purchased merchandise on account for $9, 208. 13 Purchased equipment for cash, $980. 16 Paid the entire amount due to the Strong Company. 18 Received $4,eee from customers on account. 20 Paid $980 to the owner of the building for January's rent. 30 Paid employees $2,488 for salaries for the month of January. 31 Paid a cash dividend of $980 to shareholders.

Answer 1

Solution:

Requirement 1& 3: T-Accounts

Cash
Beg balance	$    4,400
Jan. 1	$    2,900	$        900	Jan. 13
Jan. 18	$    4,000	$    4,900	Jan. 16
		$        900	Jan. 20
		$    2,400	Jan. 30
		$        900	Jan. 31
End Balance	$    1,300
Inventory
Beg balance	$    4,400
Jan. 10	$    9,200	$    1,400	Jan. 1
		$    2,200	Jan. 8
End Balance	$ 10,000
Accumulated Depreciation
Beg balance		$    2,900
End Balance		$    2,900
Common Stock
Beg balance		$    9,000
End Balance		$    9,000
Sales Revenue
Beg balance	$           -
		$    2,900	Jan. 1
		$    4,400	Jan. 8
End Balance		$    7,300
Salaries expense
Beg balance	$           -
Jan. 30	$    2,400
End Balance	$    2,400
Dividend
Beg balance	$           -
Jan. 31	$        900
End Balance	$        900
Accounts Receivable
Beg balance	$    1,400
Jan. 8	$    4,400	$    4,000	Jan. 18
End Balance	$    1,800
Equipment
Beg balance	$ 10,400
Jan. 2	$    4,900
Jan. 13	$        900
End Balance	$ 16,200
Accounts Payable
Beg balance		$    2,400
Jan. 16	$    4,900	$    4,900	Jan. 2
		$    9,200	Jan. 10
End Balance		$ 11,600
Retained earnings
Beg balance		$    6,300
End Balance		$    6,300
Cost of goods sold
Beg balance	$           -
Jan. 1	$    1,400
Jan. 8	$    2,200
End Balance	$    3,600
Rent expense
Beg balance	$           -
Jan. 20	$        900
End Balance	$        900

Advertisement Expense
Beg balance	$           -
Jan. 4	$        200
End Balance	$        200
Accrued Liabilities
Beg balance	$           -
		$        200	Jan. 4
End Balance		$        200

Requirement 4 : Un adjusted Trial Balance

WHITLOW MANUFACTURING CORPORATION
Unadjusted Trial Balance
January 31,2021
Account title	Debit	Credit
Cash	$        1,300	$                 -
Accounts Recivable	$        1,800	$                 -
Inventory	$     10,000	$                 -
Equipment	$     16,200	$                 -
Accumulated Depreication	$               -	$          2,900
Accounts Payable	$               -	$        11,600
Accrued Liabilties	$               -	$              200
Common stock	$               -	$          9,000
Retained earnings	$               -	$          6,300
Sales revenue	$               -	$          7,300
Cost of goods sold	$        3,600	$                 -
Salaries Expense	$        2,400	$                 -
Rent Expense	$           900	$                 -
Dividend	$           900	$                 -
Advertisement Expense	$           200
Total	$     37,300	$        37,300

1) On January 4th, an invoice has been received in relating to make payment for advertisement but no bill has paid yet. So, no journal entry is required for that.Note;