Enter the beginning balances in the ledger accounts and post the April transactions. (Post entries in the order of journal entries presented in the previous part.) Cash No. 101 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance ? 2000 Apr. 12 J1 600 1400 Apr. 14 J1 980 420 Apr. 21 J1 594 Apr. 27 J1 Accounts Receivable No. 112 Date Explanation Ref. Debit Credit Balance J1 J1 J1 J1 Inventory No. 120 Date Explanation Ref. Debit Credit Balance Balance ?
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20 Debit: Accounts Receivable Credit: Sales Revenue This entry is made to record the credit sale. The company has sold goods on credit, so it increases its Accounts Receivable (an asset account) and its Sales Revenue (a revenue account). Apr. 20 Debit: Cost of Show more…
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On December 1, 2017, Annalise Company had the account balances shown below. Debit: Cash $4,800, Accounts Receivable 3,900, Inventory 1,800*, Equipment 21,000 Total $31,500. Credit: Accumulated Depreciation—Equipment $1,500, Accounts Payable 3,000, Owner's Capital 27,000 Total $31,500. *(3,000 × $0.60). The following transactions occurred during December. Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.74 per unit. 5 Sold 4,400 units of inventory on account for $0.90 per unit. (It sold 3,000 of the $0.60 units and 1,400 of the $0.74.) 7 Granted the December 5 customer $180 credit for 200 units of inventory returned costing $120. These units were returned to inventory. 17 Purchased 2,200 units of inventory for cash at $0.80 each. 22 Sold 2,100 units of inventory on account for $0.95 per unit. (It sold 2,100 of the $0.74 units.) Adjustment data: 1. Accrued salaries payable $400. 2. Depreciation $200 per month. Instructions (a) Journalize the December transactions and adjusting entries, assuming Annalise uses the perpetual inventory method. (b) Enter the December 1 balances in the ledger T-accounts and post the December transactions. In addition to the accounts mentioned above, use the following additional accounts: Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Salaries and Wages Payable, Sales Revenue, and Sales Returns and Allowances. (c) Prepare an adjusted trial balance as of December 31, 2017. (d) Prepare an income statement for December 2017 and a classified balance sheet at December 31, 2017. (e) Compute ending inventory and cost of goods sold under FIFO, assuming Annalise Company uses the periodic inventory system. (f) Compute ending inventory and cost of goods sold under LIFO, assuming Annalise Company uses the periodic inventory system.
Adi S.
Akash M.
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