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    2299815

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    mohitgaba19
    The document provides account balances and transactions for Prosen Distributing Company for December 2014. It includes beginning balances, transactions during the month including purchases, sales, payments, and receipts. It also includes adjusting entries for accrued salaries, depreciation, and supplies. The instructions are to journalize and post the transactions, prepare adjusting entries, an adjusted trial balance, income statement, owner's equity statement, and classified balance sheet.

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    2299815

    Uploaded by

    mohitgaba19
    452 views9 pages
    The document provides account balances and transactions for Prosen Distributing Company for December 2014. It includes beginning balances, transactions during the month including purchases, sales, payments, and receipts. It also includes adjusting entries for accrued salaries, depreciation, and supplies. The instructions are to journalize and post the transactions, prepare adjusting entries, an adjusted trial balance, income statement, owner's equity statement, and classified balance sheet.

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    The document provides account balances and transactions for Prosen Distributing Company for December 2014. It includes beginning balances, transactions during the month including purchases, sales, payments, and receipts. It also includes adjusting entries for accrued salaries, depreciation, and supplies. The instructions are to journalize and post the transactions, prepare adjusting entries, an adjusted trial balance, income statement, owner's equity statement, and classified balance sheet.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    452 views9 pages

    2299815

    Uploaded by

    mohitgaba19
    The document provides account balances and transactions for Prosen Distributing Company for December 2014. It includes beginning balances, transactions during the month including purchases, sales, payments, and receipts. It also includes adjusting entries for accrued salaries, depreciation, and supplies. The instructions are to journalize and post the transactions, prepare adjusting entries, an adjusted trial balance, income statement, owner's equity statement, and classified balance sheet.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    The document provides journal entries for a company over a period of time including transactions such as paying salaries, receiving payments from customers, purchasing and selling inventory. It also includes adjusting entries and the preparation of basic financial statements.

    Transactions such as paying salaries, receiving cash from customers, purchasing and selling inventory on account, as well as cash payments to suppliers are recorded in the journal entries.

    Adjusting entries are recorded for supplies, salaries payable, depreciation expense and unearned revenue. These adjusting accounts are necessary to accurately capture expenses incurred and revenues earned during the period.

    On December 1, 2014, Prosen Distributing Company had the following account balances.

    Cash Debit AccumulatCredit

    $ 7,200
    Accounts R 4,600 Equipment$ 2,200
    Inventory 12,000 Accounts P 4,500
    Supplies 1,200 Salaries a 1,000
    Equipment 22,000 Owner"s Ca 39,300
    $47,000 $47,000
    During December, the company completed the following summary transactions.
    6 Paid $1,600 for salaries and wages due employees, of which $600 is for December and $1,000 is for N
    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 $8,00
    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.
    Adjustment data:
    1. Accrued salaries and wages payable $800.
    2. Depreciation $200 per month.
    3. Supplies on hand $1,500.
    Instructions
    (a) Journalize the December transactions using a perpetual inventory system.
    (b) Enter the December 1 balances in the ledger T-accounts and post the December transactions. Use Cost of Goods Sold,
    (c) Journalize and post adjusting entries.
    (d) Prepare an adjusted trial balance.
    (e) Prepare an income statement and an owner"s equity statement for December and a classified balance sheet at Decem
    December and $1,000 is for November salaries and wages payable.
    nt allowed).

    merchandise sold was $8,000.

    ons. Use Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Sales Revenue, Sales Discounts, and Supplies Expen

    ified balance sheet at December 31.


    Discounts, and Supplies Expense.
    Answer B
    Date Accounts Title Debit Credit
    Nov-08 Salaries payable $ 650
    Salaries expense $ 550
    Cash $ 1,200

    Nov-10 Cash $ 1,700


    Accounts Receivable $ 1,700

    Nov-11 Merchandise Inventory $ 5,000


    Accounts Payable $ 5,000

    Nov-12 Accounts Receivable $ 5,500


    Sales Revenue $ 5,500

    Nov-12 Cost of Goods Sold $ 3,200


    Merchandise Inventory $ 3,200

    Nov-15 Accounts Payable $ 200


    Merchandise Inventory $ 200

    Nov-19 Cash $ 5,390 ($ 5,500 less $ 110)


    Sales discounts $ 110 (2 % of $ 5,500)
    Accounts Receivable $ 5,500

    Nov-20 Accounts Payable $ 4,800


    Cash $ 4,704 ($ 4,800 less $ 96)
    Merchandise Inventory $ 96 (2 % of $ 4,800)

    Nov-22 Cash $ 7,400


    Service Revenue $ 7,400

    Nov-25 Equipment $ 3,600


    Accounts Payable $ 3,600

    Nov-27 Supplies $ 1,250


    Accounts Payable $ 1,250

    Nov-28 Accounts Payable $ 2,700


    Cash $ 2,700

    Nov-29 Rent expense $ 750


    Cash $ 750

    Nov-29 Salaries expense $ 1,150


    Cash $ 1,150

    Nov-29 Accounts Receivable $ 1,900


    Service Revenue $ 1,900

    Nov-29 Cash $ 600


    Unearned Service Revenue $ 600

    Adjusting entries
    S.No Accounts Title Debit Credit
    1 Supplies expense $ 550
    Supplies $ 550
    ($ 1,100 add $ 1,250 less $ 1,800)

    2 Salaries expense $ 600


    Salaries payable $ 600

    3 Depreciation expense $ 900


    Accumulated Depreciation $ 900

    4 Unearned Service Revenue $ 650


    Service Revenue $ 650
    ($ 450 add $ 600 less $ 400)
    Answer A & C
    Cash Salaries expense
    Balance 6700 Nov-08 1200 Nov-08 550
    Nov-10 1700 Nov-20 4704 Nov-29 1150
    Nov-19 5390 Nov-28 2700 Salaries p 600
    Nov-22 7400 Nov-29 750 2300
    Nov-29 600 Nov-29 1150
    Balance 11286 Merchandise Inventory
    21790 21790 Nov-11 5000 Nov-12 3200
    Nov-15 200
    Accounts Receivable Nov-20 96
    Balance 2450 Nov-10 1700 Balance 1504
    Nov-12 5500 Nov-19 5500 5000 5000
    Nov-29 1900 Balance 2650
    Sales Revenue
    9850 9850 Nov-12 5500
    Supplies
    Balance 1100 Supplies e 550 Cost of Goods Sold
    Nov-27 1250 Balance 1800 Nov-12 3200
    2350 2350

    Sales discounts
    Equipment Nov-19 110
    Balance 34000 Balance 37600
    Nov-25 3600
    37600 37600 Service Revenue
    Nov-22 7400
    Salaries payable Nov-29 1900
    Nov-08 650 Balance 650 Unearned 650
    Salaries p 600 Rent expense
    Nov-29 750

    Accumulated depreciation
    Balance 800
    Depreciat 900

    Accounts payable
    Nov-15 200 Balance 6200
    Nov-20 4800 Nov-11 5000
    Nov-28 2700 Nov-25 3600
    Balance 8350 Nov-27 1250 Supplies expense
    Supplies 550
    16050 16050

    Unearned service revenue Depreciation expense


    Service R 650 Balance 450 Accumulat 900
    Balance 400 Nov-29 600
    1050 1050

    Common Stock
    Balance 20000 Balance 20000

    Retained Earnings
    Balance 16150 Balance 16150
    Answer D & E
    Unadjusted Trial Balance Adjustments Adjusted Trial Balance
    Accounts Title Debit Credit Debit Credit Debit Credit Debit
    Cash 11286
    Accounts Receivable 2650
    Supplies 2350 550
    Equipment 37600
    Salaries payable 0 600
    Accumulated depreciation 800 900
    Accounts payable 8350
    Unearned service revenue 1050 650
    Common Stock 20000
    Retained Earnings 16150
    Merchandise Inventory 1504
    Sales Revenue 5500
    Cost of Goods Sold 3200
    Sales discounts 110
    Service Revenue 9300 650
    Rent expense 750
    Depreciation expense 900
    Supplies expense 550
    Salaries expense 1700 600

    61150 61150 2700 2700 0 0 0


    0 0 0
    Credit Debit Credit

    0 0 0
    0 0

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