Question

COMPREHENSIVE ACCOUNTING CYCLE REVIEW ACR5-1 On December 1, 2018, Devine Distributing Company had the following account balances. Credit Debit Cash S 7,200 Accumulated Depreciation-Equipment S 2,200 Accounts Receivable 4,600 Inventory 4,500 12,000 Accounts Payable 1,000 Supplies Equipment Salaries and Wages Payable 1,200 15,000 22,000 Common Stock 24,300 $47,000 Retained Earnings $47,000 During December, the company completed the following summary transactions Dec. 6 Paid S1,600 for salaries due employees, of which $600 is for December and $1,000 is for November salaries payable. Received $1,900 cash from customers in payment of account (no discount allowed). 8 Sold merchandise for cash $6,300. The cost of the merchandise sold was $4,100. 10 Purchased merchandise on account from Hecht Co. $9,000, terms 2/10, n/30. 13 Purchased supplies for cash $2,000. 15 Sold merchandise on account $12,000, terms 3/10, n/30. The cost of the merchandise sold was 18 $8,000 Paid salaries $1,800. 20 Paid Hecht Co. in full, less discount. 23 Received collections in full, less discounts, from customers billed on December 18. 27 Data for Adjusting Entries: Accrued salaries payable $800. 1. Depreciation $200 per month. Supplies on hand $1,500. 2. 3. Income tax due and unpaid at December 31 is $200. 4.

Answer 1

Particulars	Debit	Credit
Salaries and Wages Expenses	$600
Salaries and Wages Payable	$1,000
Cash		$1,600
Payment of Salary for the month of December and November payable
Particulars	Debit	Credit
Cash	$6,300
Sales		$6,300
Sales of Merchandises
Particulars	Debit	Credit
Cost of Goods sold	$4,100
Inventory		$4,100
Cost booking for Sales of Merchandises
Particulars	Debit	Credit
Inventory	$9,000
Accounts Payable		$9,000
Purchase of Merchandise on account - 2/10, N/30
Particulars	Debit	Credit
Supplies	$2,000
Cash		$2,000
Purchase of Supplies for cash.
Particulars	Debit	Credit
Account Receivable	$12,000
Sales		$12,000
Sales of Merchandise on account - 3/10, n/30
Particulars	Debit	Credit
Cost of Goods sold	$8,000
Inventory		$8,000
Cost booking for Sales of Merchandises
Particulars	Debit	Credit
Salaries and Wages Expenses	$1,800
Cash		$1,800
Payment of Salary in cash
Particulars	Debit	Credit
Accounts Payable	$9,000
Inventory		$180
Cash		$8,820
Payment to Hechit Co. after adjusting the discount amount with inventory.
Discount Amount = 9000*2% =	$180
Net payable = 9000-180	$8,820
Particulars	Debit	Credit
Cash	$11,640
Sales	$360
Account Receivable		$12,000
Receipt of collection after adjusting discount from sales
Discount Amount = 12000*3% =	$360
Net Receivable = 12000-360	$11,640

Un- Adjusted Trial Balance of Devine Distributing Company
	Opening Balance		Transactions		Closing Balance
Ledger	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$7,200		$17,940	$14,220	$10,920
Account Receivable	$4,600		$12,000	$12,000	$4,600
Inventory	$12,000		$9,000	$12,280	$8,720
Supplies	$1,200		$2,000		$3,200
Office Equipment	$22,000				$22,000
Accumulated Depreciation -Office Equipment		$2,200				$2,200
Accounts Payable		$4,500	$9,000	$9,000		$4,500
Salaries and Wages Payable		$1,000	$1,000			$0
Common Stock		$15,000				$15,000
Retained Earnings		$24,300				$24,300
Salaries and Wages Expenses			$2,400		$2,400
Sales			$360	$18,300		$17,940
Cost of Goods sold			$12,100		$12,100
Total	$47,000	$47,000	$65,800	$65,800	$63,940	$63,940

Particulars	Debit	Credit
Salaries and Wages Expenses	$800
Salaries and Wages Payable		$800
Provision for Accrued salaries for the period
Particulars	Debit	Credit
Depreciation Expenses	$200
Accumulated Depreciation -Office Equipment		$200
Provision for Depreciation for the period
Particulars	Debit	Credit
Supplies Expenses	$1,700
Supplies		$1,700
Record of supplies expenses for the period
Supplies expenses for the period = 3200-1500	$1,700
Particulars	Debit	Credit
Income tax expenses	$200
Income tax expenses Payable		$200
Record for accrued income tax expenses due for the period.

Adjusted Trial Balance of Devine Distributing Company

	Un- Adjusted Balance		Adjustments		Adjusted Balance
Ledger	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$10,920				$10,920
Account Receivable	$4,600				$4,600
Inventory	$8,720				$8,720
Supplies	$3,200			1700	$1,500
Office Equipment	$22,000				$22,000
Accumulated Depreciation -Office Equipment		$2,200		200		$2,400
Accounts Payable		$4,500				$4,500
Salaries and Wages Payable		$0		800		$800
Common Stock		$15,000				$15,000
Retained Earnings		$24,300				$24,300
Salaries and Wages Expenses	$2,400		800		$3,200
Sales		$17,940				$17,940
Cost of Goods sold	$12,100				$12,100
Depreciation Expenses			200		$200
Supplies Expenses			1700		$1,700
Income tax expenses			200		$200
Income tax expenses Payable				200		$200
Total	$63,940	$63,940	$2,900	$2,900	$65,140	$65,140

Income Statement of Devine Distributing Company for the period ending - Dec-31
Particulars	Amount	Amount
Income
Sales	$17,940
		$17,940
Expenses
Cost of Goods sold	$12,100
Salaries and Wages Expenses	$3,200
Depreciation Expenses	$200
Supplies Expenses	$1,700
Income tax expenses	$200
		$17,400
Net Profit		$540
Retained Earning statement of Devine Distributing Company for the period ending - Dec-31
Particulars	Amount	Amount
Opening Balance		$24,300
Add : Income for the Period		$540
Less : Dividend Paid		$0
Closing Balance		$24,840

Balance Sheet of Devine Distributing Company for the period ending - Dec-31
Assets	Amount	Liabilities	Amount
Current Assets		Current Liabilities
Cash	$10,920	Accounts Payable	$4,500
Account Receivable	$4,600	Salaries and Wages Payable	$800
Inventory	$8,720	Income tax expenses Payable	$200
Supplies	$1,500
Property, Plant and Equipment		Long Term Liabilities
Office Equipment	$22,000
Less: Accumulated Depreciation	-$2,400	Stockholder's Equity
		Common Stock	$15,000
		Retained Earnings	$24,840
Other Assets
Total	$45,340	Total	$45,340