Question

create a unadjusted trial balance with the following information:

The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2017.

Account Title	Debits			Credits
Cash		6,000
Accounts receivable		3,000
Inventory		6,000
Equipment		12,000
Accumulated depreciation—equipment					4,500
Accounts payable					4,000
Common stock					9,000
Retained earnings					9,500
Sales revenue					0
Cost of goods sold		0
Salaries and wages expense		0
Rent expense		0
Advertising expense		0
Totals		27,000			27,000

The following transactions occurred during January 2018:

Jan.		1		Sold merchandise for cash, $4,500. The cost of the merchandise was $3,000. The company uses the perpetual inventory system.
		2		Purchased equipment on account for $6,500 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 $6,000. The cost of the merchandise was $3,800.
		10		Purchased merchandise on account for $10,000.
		13		Purchased equipment for cash, $900.
		16		Paid the entire amount due to the Strong Company.
		18		Received $6,000 from customers on account.
		20		Paid $900 to the owner of the building for January’s rent.
		30		Paid employees $4,000 for salaries and wages for the month of January.
		31		Paid a cash dividend of $900 to shareholders.

Answer 1

Trial Balance of Whitlow Manufacturing

as on 31.01.2018

  

Debit $ Credit $

Cash . 3300

Accounts Receivable. 3000

Inventory(Closing). 9200

Equipment . 19400

Accumulated Depreciation. 4500

Accounts Payable. 14200

Common Stock. 9000

Retained Earnings . 9500

Sales Revenue. 10500

Cost of goods sold . 6800

Salaries & wages . 4000

Rent Expense . 900

Advertising Expense. 200

Dividend Paid. 900

Total . 47700 47700

Calculation of Cost of Goods Sold :

Opening Stock + Purchases - Closing Stock

6000 + 10000 - 9200

6800