Comprehensive Problem 5 (Part Level Submission) Debit Credit (a) Date Account Ti

Question

Comprehensive Problem 5 (Part Level Submission)

Debit

Credit

(a)

Date

Account Titles and Explanation

Debit

Credit

Dec. 6

(To record sales revenue.)

(To record cost of goods sold.)

(To record the sales revenue.)

(To record cost of goods sold.)

Comprehensive Problem 5 (Part Level Submission)

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

Debit

Credit

Cash $7,500 Accumulated Depreciation—Equipment $2,640 Accounts Receivable 4,600 Accounts Payable 4,900 Inventory 12,400 Salaries and Wages Payable 1,000 Supplies 1,400 Common Stock 30,000 Equipment 26,400 Retained Earnings 13,760 $52,300 $52,300
During December, the company completed the following summary transactions.
Dec. 6 Paid $1,800 for salaries and wages due employees, of which $800 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 $6,800. The cost of the merchandise sold was $4,200. 13 Purchased merchandise on account from Maglio Co. $8,900, terms 2/10, n/30. 15 Purchased supplies for cash $1,800. 18 Sold merchandise on account $12,600, terms 3/10, n/30. The cost of the merchandise sold was $8,200. 20 Paid salaries and wages $1,500. 23 Paid Maglio Co. in full, less discount. 27 Received collections in full, less discounts, from customers billed on December 18.

Explanation / Answer

Journal entry :

Date account and explanation debit credit Dec 6 Salary expense 800 Salary payable 1000     Cash 1800 (To record salary paid) Dec 8 Cash 1900     Account receivable 1900 (To record amount received) Dec 10 Account receivable 6800    Saless 6800 (To record Sales) Dec 10 Cost of goods sold 4200     Merchandise inventory 4200 (To record cost of goods sold) Dec 13 Merchandise inventory 8900     Account payable 8900 (To record purchase) Dec 15 Supplies 1800     Cash 1800 (To record purchase supplies) Dec 18 Account receivable 12600    Sales revenue 12600 (To record Sales) Dec 18 Cost of goods sold 8200     Merchandise inventory 8200 (To record cost of goods sold) Dec 20 Salary and wages expense 1500     Cash 1500 (To record salary and wages paid) Dec 23 Account payable 8900    Cash (8900*98%) 8722     Merchandise inventory 178 (To record amount paid) Dec 27 Cash (12600*97%) 12222 Sales discount 378     Account receivable 12600 (To record amount received)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.