Question

Journalize adjusting entries. Post adjusting entries.

Comprehensive Problem 5 (Part Level Submission) On December 1, 2017, Prosen Distributing Company had the following account balances. Debit Credit Accumulated Cash $7,500 Depreciation $2,640 -Equipment Accounts Accounts 4,600 4,900 Receivable Payable Salaries and Inventory 12,400 Wages 1,000 Payable Common Supplies 1,400 30,000 Stock Retained Equipment 26,400 13,760 Earnings $52,300 $52,300 During December, the company completed the following summary transactions. Dec. 6 Paid $1,800 for salaries and wages due employees, of which $800 is for December and $1,000 is for November salaries and wages payable. 8 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 $4,200. 13 Purchased merchandise on account from Maglio Co. $8,900, terms 2/10, n/30. 15 Purchased supplies for cash $1,800. 18 Sold merchandise on account $12,600, terms 3/10, n/30. The cost of the merchandise sold was $8,200. 20 Paid salaries and wages $1,500. 23 Paid Maglio Co. in full, less discount. 27 Received collections in full, less discounts, from customers billed on December 18.

Answer 1

Date	Account Titles	Debit	Credit
Dec-31	Salaries and Wages Expense	$            700
	Salaries and Wages Payable		$                700
Dec-31	Depreciation Expense-Equipment	$            240
	Accumulated Depreciation-Equipment		$                240
Dec-31	Supplies Expense	$         1,500
	Supplies		$             1,500

Supplies Expense = $1400+1800-1700 = $1500

Supplies
12/1 Bal	$      1,400	12/31	$    1,500
12/15	$      1,800
12/31 Bal	$      1,700
Supplies Expense
12/31	$      1,500
12/31 Bal	$      1,500
Depreciation Expense
12/31	$          240
12/31 Bal	$          240
Salaries and Wages Expense
12/6	$          800
12/20	$      1,500
12/31	$          700
12/31 Bal	$      3,000

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