Comprehensive Problem 7 (Part Level Submission) On December 1, 2017, Fullerton C

Question

Comprehensive Problem 7 (Part Level Submission) On December 1, 2017, Fullerton Company had the following account balances Debit Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurancee Equipment Credit $17,800 Accumulated Depreciation-Equipment $2,900 6,200 52,400 11,000 $72,500 2,500 Accounts Payable 7,100 Common Stock 15,900 Retained Earnings 1,600 27,600 $72,500 During December, the company completed the following transactions. Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed) 12 Purchased merchandise on account from Vance Co. $12,900, terms 1/10, n/30 17 Sold merchandise on account $16,300, terms 2/10, n/30. The cost of the merchandise sold was $9,200 19 Paid salaries $2,100 22 Paid Vance Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17 31 Received $2,800 cash from customers in payment of account (no discount allowed) Adjustment data 1. Depreciation $200 per month 2. Insurance expired $400

Explanation / Answer

Fullerton Company Journal Entries S.No. Date Description Post reference Debit Credit 1 7-Dec Cash A/c 3,600 Account Receivable A/c 3,600 (For Received cash from account receivable) 2 12-Dec Inventory A/c 12,900 Account Payable A/c 12,900 (For Purchased inventory from Vance co.) 3 17-Dec Account Receivable A/c 16,300 Inventory A/c 16,300 (For sold merchandise on account) 4 19-Dec Salary A/c 2,100 Cash A/c 2,100 (For Salary paid) 5 22-Dec Account Payable A/c 12,771 Cash A/c 12,771 (For Paid to Vance co. after 1% discount) 6 22-Dec Account Payable A/c 129 Discount A/c 129 (For Discount received from Vance co.) 7 26-Dec Cash A/c 15,974 Account Receivable A/c 15,974 (For Cash received from AR after discount of 2%) 8 26-Dec Discount A/c 326 Account Receivable A/c 326 (For Discount given to AP) 9 31-Dec Cash A/c 2,800 Account Receivable A/c 2,800 (For Cash received from AR ) 10 31-Dec Depreciation A/c 200 Accumulated Depreciation A/c 200 (For Deprecation for month) 11 31-Dec Insurance A/c 400 Prepaid insurance A/c 400 (For Expired insurance for month)

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