Question

On December 1, 2017, Prosen Distributing Company had the following account balances.

		Debit				Credit
Cash		$7,000		Accumulated Depreciation—Equipment		$2,310
Accounts Receivable		4,800		Accounts Payable		4,900
Inventory		11,600		Salaries and Wages Payable		1,100
Supplies		1,500		Common Stock		30,000
Equipment		23,100		Retained Earnings		9,690
		$48,000				$48,000

During December, the company completed the following summary transactions.

Dec. 6		Paid $1,750 for salaries and wages due employees, of which $650 is for December and $1,100 is for November salaries and wages payable.
8		Received $2,000 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. $9,000, terms 2/10, n/30.
15		Purchased supplies for cash $1,800.
18		Sold merchandise on account $12,900, terms 3/10, n/30. The cost of the merchandise sold was $8,200.
20		Paid salaries and wages $1,900.
23		Paid Maglio Co. in full, less discount.
27		Received collections in full, less discounts, from customers billed on December 18.

Enter the December 1 balances in the ledger T-accounts and post the December transactions.

Answer 1

Journal Entries:

Journal Entries:

Journal Entries:

Posting to T-Accounts

Posting to T-accounts

Posting to T-accounts:

Posting to T-accounts: