Question

During December, the company completed the following summary transactions.

Dec.  6	Paid $1,600 for salaries and wages due employees, of which $600 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 $6,300. The cost of the merchandise sold was $4,100.
13	Purchased merchandise on account from Maglio Co. $9,000, terms 2/10, n/30.
15	Purchased supplies for cash $2,000.
18	Sold merchandise on account $12,000, terms 3/10, n/30. The cost of the merchandise sold was $8,000.
20	Paid salaries and wages $1,800.
23	Paid Maglio Co. in full, less discount.
27	Received collections in full, less discounts, from customers billed on December 18.

1. Journalize in the general journal and post to the general ledgers the December transactions.
2. Prepare a trial balance and turn in your work for review.
3. When you work is returned, journalize and post the adjusting entries. Once again, the adjusting entries will be journalized in the same general journal used for part (a) and posted to the same general ledgers used for part (a)

Adjustment data:

1. Accrued salaries and wages payable $800.
2. Depreciation $200 per month.
3. Supplies on hand $1,500.

4. Prepare an adjusted trial balance and turn in your work for review.
5. When your work is returned, prepare a multiple step income statement, statement of retained earnings, and a classified balance sheet. Be sure to use the correct heading on each statement.

Journalize and post the closing entries. Once again, journalize in the same general journal used above and post to the same general ledgers used above.

Someone said information of the previous month is needed, but this worksheet only contains the month of December for this assignment.

Answer 1

Journal entries

Dec-6

By salaries and wages a/c ...dr. $600

By salaries and wages payable a/c ...dr. $1000

To bank a/c. Cr. $1600

Dec 8

By cash a/c. ....dr. $1900

To debtors. A/c. Cr. $1900

Dec 10

By cash a/c .....dr. $6300

To sales a/c. Cr. $6300

Dec 13

By purchases a/c....dr. $9000

To Maglio co a/c. Cr. $9000

Dec 15

By purchases a/c ...dr. $2000

To Cash a/c. Cr. $2000