Question

4. Identify, analyte, record, and post transactions (THERE ARE 4 PARTS TO THIS QUESTION): King Toot's music! store sels musical Instruments and other related merchandise to customers. The following is a list of King Toot's account balances at the beginning of December (le, as of December 14, 2017): Cash: $18.750; Accounts Receivable (A/R): $11,980, Inventory: $20,800, Equipment: $34,400; Accounts Payable (A/P): $13,930; Notes Payable (N/P) $55,000; Common Stock $17,000. Assume all other accounts had a balance of so as of 12/1/17. The accountant for King Toot's observed the following transactions which occurred during December 2017 a. 12/3/17: Issued 400 shares of common stock for $10 per share. 12/5/17: Sold merchandise inventory, which originally cost $900, for $2.200 to customers. Of the $2,200 in sales. $500 worth was purchased by customers using cash. The remaining $1,700 was purchased by customers on account. (HINT: don't forget there will be two parts to record here one part to record the sales revenue and one part to record the cost of the merchandise inventory sold). 12/8/17: Paid $4,250 in cash to creditors on outstanding accounts payable. 12/20/17. Received $3.00 in cash from customers as payment on their accounts receivable. e. 12/30/17: Paid $1,100 in cash for December's Rent. f. 12/30/17: Paid $120 in cash dividends to stocicholders. Part 1 - Account Identification and transaction analysis: Prepare a transaction worksheet' summarizing all of the December transactions for King Toor's. I have provided a framework for you and completed transaction a. for you as an example. After recording all transactions, be sure to calculate ending balances as of 12/31/17 and enter them in the last row of the worksheet. HINT: Make sure the accounting equation remains in balance after entering each transaction! A Assets Inventory Acct Equip. Liabilities Accts Notes Payable Payable IA/P) $13,930 $55,000 Rec Stockholders' Equity Retained Earnings Rev. (Exp.) (DV) Common Stock 12/1 ARI $11.95 $20.800 $34,400 O $ S O $11.750 -$4.000 $17,000 $4.000

second picture is part 1, need help with part two please

Answer 1

Date	Account title	Debit	credit
12/5/17	Accounts receivable	1700
	cash	500
	sales revenue		2200
	[Being sales made amounting to 2200 out of which 500 is for cash and rest is on account]
b-2	Cost of goods sold	900
	Inventory		900
	[Being cost of sales recorded]
12/8/17	Accounts payable	4250
	cash		4250
	[Being payment to creditors made]
12/20/17	cash	3080
	Accounts receivable		3080
	[Being collection from customers due made]
12/30/17	Rent expense	1100
	cash		1100
	[Being rent paid for month of December]
12/30/17	Dividend	120
	cash		120
	[Being dividend paid to stockholders]