Required information The tolowing information applies to the questions displayed

Question

Required information The tolowing information applies to the questions displayed below The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31 2017 2,300 ,300 13,300 Inventory ccunulated depreciation- Accounts payable ,800 ,300 7.100 Cost of goods sold Salaries and vages expense dvertising expense The following transactions occurred ouring January 2018 Jass. 1 Sold merchandiac for eaah* 3,800· 7h© coat of the merchandise vaa 2,300- Tho company uses the porpotual inventory systen. 2 Parchasod oquipmont on accoant for 5,800 from the Strong CompanyT Received a $1s0 bill from the local novpaper for an advertisomont that appeared in the paper on Jamary2 Sold serchandise o account for 5,300 ho coat of the morchandiso 10 Purehased merchandis@ on aceount for 9,650. 13 Parchased egeipment for cash, $800 6 Paid the entire anount dae to the Strong Company 18 Receiv 20 Faid $800 to the owner of the buiiding tor January s rent 0 Paid enployees $3,300 for salaries and wages for the month of Jasuary on accoant 31 Faid a cash dividend of $1,000 to shareholderS Required: 2. Prepare general joumail entries so record each transaction. gf no entry is required for a transaction/event, seleC No journal entry required" in the first account field. 3. Post the transactions into the appropriate T-accounts. (Enter the date of the transaction in the column next to the amount. Be sure to include beginning balances 4, Prepare an unaajusted trial balance as of January 31, 2018

Explanation / Answer

Solution:

Part 1 – Journal Entries

Transaction

Date

General Journal

Debit

Credit

1)

Jan.01, 2018

Cash

$3,800

  Sales Revenue

$3,800

2)

Jan.01, 2018

Cost of Goods Sold

$2,300

Inventory

$2,300

3)

Jan.02, 2018

Equipment

$5,800

Accounts Payable

$5,800

4)

Jan.04, 2018

Advertising Expense

$150

Accounts Payable

$150

5)

Jan.08, 2018

Accounts Receivable

$5,300

Sales Revenue

$5,300

6)

Jan.08, 2018

Cost of Goods Sold

$3,100

Inventory

$3,100

7)

Jan. 10, 2018

Inventory

$9,650

Accounts Payable

$9,650

8)

Jan. 13, 2018

Equipment

$800

Cash

$800

9)

Jan. 16, 2018

Accounts Payable

$5,800

Cash

$5,800

10)

Jan. 18, 2018

Cash

$4,600

Accounts Receivable

$4,600

11)

Jan. 20, 2018

Rent Expense

$800

Cash

$800

12)

Jan. 30, 2018

Salaries and Wages Expense

$3,300

Cash

$3,300

13)

Jan. 31, 2018

Dividends

$1,000

Cash

$1,000

Part 2 – T-Accounts

Cash

Accounts Receivable

Beg. Bal

$5,300

$800

Jan.13

Beg. Bal

$2,300

$4,600

Jan.18

Jan.01

$3,800

$5,800

Jan.16

Jan.08

$5,300

Jan.18

Jan.18

$4,600

$800

Jan.20

$3,300

Jan.30

$1,000

Jan.31

End. Bal.

$2,000

End. Bal.

$3,000

Inventory

Equipment

Beg. Bal

$5,300

$2,300

Jan.01

Beg. Bal

$11,300

Jan.10

$9,650

$3,100

Jan.08

Jan.02

$5,800

Jan.13

$800

End. Bal.

$9,550

End. Bal.

$17,900

Accumulated Depreciation - Equipment

Accounts Payable

Beg. Bal

$3,800

Beg. Bal

$3,300

Jan.16

$5,800

$5,800

Jan.02

$150

Jan.04

$9,650

Jan.10

End. Bal.

$3,800

End. Bal.

$13,100

Common Stock

Retained Earnings

Beg. Bal

$10,000

Beg. Bal

$7,100

End. Bal.

$10,000

End. Bal.

$7,100

Sales Revenue

Cost of Goods Sold

Beg. Bal

$3,800

Jan.01

Beg. Bal

$5,300

Jan.08

Jan.01

$2,300

Jan.08

$3,100

End. Bal.

$9,100

End. Bal.

$5,400

Rent Expense

Salaries and Wages Expense

Beg. Bal

Beg. Bal

Jan.20

$800

Jan.30

$3,300

End. Bal.

$800

End. Bal.

$3,300

Advertising Expense

Beg. Bal

Jan.04

$150

End. Bal.

$150

Part 3 – Unadjusted Trial Balance

Unadjusted Trial Balance

Debit

Credit

Cash

$2,000

Accounts receivable

$3,000

Inventory

$9,550

Equipment

$17,900

Accumulated Depreciation - Equipment

$3,800

Accounts Payable

$13,100

Common Stock

$10,000

Retained Earnings

$7,100

Dividends

$1,000

Sales Revenue

9100

Cost of Goods Sold

$5,400

Salaries and Wages Expense

$3,300

Rent Expense

$800

Advertising Expense

$150

Total

$43,100

$43,100

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Transaction

Date

General Journal

Debit

Credit

1)

Jan.01, 2018

Cash

$3,800

  Sales Revenue

$3,800

2)

Jan.01, 2018

Cost of Goods Sold

$2,300

Inventory

$2,300

3)

Jan.02, 2018

Equipment

$5,800

Accounts Payable

$5,800

4)

Jan.04, 2018

Advertising Expense

$150

Accounts Payable

$150

5)

Jan.08, 2018

Accounts Receivable

$5,300

Sales Revenue

$5,300

6)

Jan.08, 2018

Cost of Goods Sold

$3,100

Inventory

$3,100

7)

Jan. 10, 2018

Inventory

$9,650

Accounts Payable

$9,650

8)

Jan. 13, 2018

Equipment

$800

Cash

$800

9)

Jan. 16, 2018

Accounts Payable

$5,800

Cash

$5,800

10)

Jan. 18, 2018

Cash

$4,600

Accounts Receivable

$4,600

11)

Jan. 20, 2018

Rent Expense

$800

Cash

$800

12)

Jan. 30, 2018

Salaries and Wages Expense

$3,300

Cash

$3,300

13)

Jan. 31, 2018

Dividends

$1,000

Cash

$1,000

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