Question

Accounting Cycle Review 5 a-e3 On December 1, 2020, Wildhorse Distributing Company had the following account balances. Debit Credit Cash Accounts Receivable Inventory Supplies Equipment $7,100 4,700 11,900 1,500 23.100 $48. 300 Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Owner's Capital $2,310 5,000 1,000 39,990 $48,300 During December the company completed the following summary transactions Dec 6 Paid $1,800 for salaries and wages de employees, of which $800 is for December and $1,000 is for November salaries and wages payable 3 Received $1.900 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6.800. The cost of the merchandise sold was $4,000. 13 Purchased merchandise on account from Boch Co. 58.900, terms 2/10, 1/30. 15 Purchased supplies for cash 1700 18 Sold merchandise on account $12.00 bens 3/10, 1/30. The cost of the merchandise sold was $9.000. 20 Paldies and wages $1500 23 Dald Bob Collecourt 27 Se l ections in counts from customers bied on December 18 Sou t h December transactions in a pere n tory system (Credit accounttiles are automatically indented her amount is one

Answer 1

From the information given above I have prepared journal entries, Ledger Accounts, Adjusting entries and Adjusted Trial Balance.

1 Wildhorse Distributing Company Cr Date 18, Dec Particulars Accounts Receivable To Sales Dr 12700 2 3 Journal Entries 12700 4 Cr 18, Dec 8000 5 Date 6 6, Dec 7 Dr 1000 800 cost of goods sold To Inventory Particulars Salaries and Wages Payable Salary and Wages expense To Cash 8000 8 1800 20, Dec 1500 Salary and Wages expense To Cash 1500 1900 23, Dec 8722 Accounts Payable To Cash ( $8900, terms 2/10, n/30, 8900*2%=178 8900-178=8722) 6800 10 8, Dec Cash 1900 11 To Accounts Receivable 12 13 10, Dec Cash 6800 14 To Sales 15 16 10, Dec Cost of goods sold 4000 17 To Inventory 18 19 13, Dec Inventory 8722 To Accounts Payable (payable $8900, terms 2/10, n/30, 8900*2%=178 8900-178=8722) recorded at Net Amount 27, Dec 4000 Cash 12319 Sales Discount 381 To Accounts Receivable (12700, terms 3/10,n/30, 12700*3%=381 12700-381=12319) 12700 20 8722 21 23 1700 24 15, Dec Supplies To Cash 1700 25 26

Ledger Accounts Date Particulars 1, Dec Opening balance 3, Dec Accounts Receivable 10, Dec Sales 27, Dec Accounts Receivable Date 6, Dec 31, Dec Particulars Cash Closing balance Salary & wages Payable Amount Date Particulars Amount 1000 1, Dec Opening balance 1000 800 31, Dec Salary & Wages expense 800 1800 1800 Cash Amount Date Particulars Amount 71006, Dec Salary & wages Payable 1000 19006, Dec Salary & wages expensel 800 6800 15, Dec Supplies 1700 12319 20, Dec Salary and Wages expen 1500 23, Dec Accounts Payable 8722 31, Dec Closing balance 14397 28119 281191 Equipment Amount Date Particulars Amount | 23100 31, Dec Closing balance 23100 Amount 3100 Salary & wages expense Date Particulars Amount Date Particulars 6, Dec Cash 800 31, Dec Closing balance 20, Dec Cash 1500 31, Dec Salary & Wages payable 800 3100 Date 1, Dec Particulars Opening balance 3100 Amount Accumulated Depreciation Equipment Amount Date Particulars 31, Dec Closing balance 2520 1, Dec Opening balance 31, Dec Depreciation 2520 Date Particulars 1. Dec Opening balance 18, Dec credit sales 2310 Amount 1900 12319 381 2800 17400 210 Accounts Receivable Amount Date Particulars 4700 8. Dec Cash 12700 27, Dec Cash 27, Dec Sales Discount 31, Dec Closing balance 17400 Sales revenue Amount Date Particulars 19500 10, Dec Cash 18, Dec Accounts Receivable 19500 2520 Date Particulars 31, Dec Closing balance Owner's Capital Amount Date Particulars 39990 1, Dec Opening balance Amount 39990 Date Particulars 31, Dec closing balance Amount 6800 12700 19500

Amount 2 Date 3 1, Dec 4 13, Dec Particulars Opening balance Accounts Payable Date 31, dec Depreciation expense Particulars Amount Date To Accumulated depreciation 210 31, Dec Equipment Amount 210 4000 Closing balance Particulars cost of goods sold Cost of goods sold Closing balance 8000 8622 20622 6 Supplies expense Date 31, Dec Particulars Supplies Amount | L 1500 1500/31, Dec Closing balance Particulars Inventory Inventory Inventory Amount Date | 1190010, Dec 8722 18, Dec 31, Dec 20622 Cost of goods sold Amount Date 4000 31, Dec 8000 12000 Accounts Payable Amount Date 8722 1,Dec 5000 13, Dec 13722 Particulars Closing balance Amount 12000 8 Date 9 10, Dec 10 18, Dec 11 12 13 Date 14 23, Dec 15 31, Dec 16 12000 Date Particulars Particulars Cash Closing balance Amount Particulars Opening balance Inventory Sales Discount Amount Date L 381 31, Dec Amount 5000 Particulars Closing balance 27, Dec Accounts Receivable 381 8722 13722 17 18 19 Date 20 1,Dec 21 15, Dec 22 23 Particulars Opening balance cash Supplies Amount Date 1500 31, Dec 170031, Dec 3200 Particulars Supplies expense Closing balance Amount 1500 1700 3200

Adjusting Entries Wildhorse Distributing Company Adjusted Trial Balance Date 31, Dec Particulars Salary and Wages expense To Salaries and Wages Payable Dror 800 800 lor 14397 2800 210 31, Dec Depreciation To Accumulated depreciation Equipment 8622 23100 210 2520 12000 1500 1700 Account Dr Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Cost of goods sold Supplies Sales revenue Accounts Payable Owner's Capital Salary & wages Payable Salary & wages expense Depreciation expense Supplies expense Sales Discount 1500 31, Dec Supplies expense To Supplies Opening balance Add: Purchases less: Closing balance Supplies expense 1500 19500 5000 39990 1700 1700 800 1500 3100 210 381 67810 Total 67810