Nov. 30 Dec. 31 Dr. Cr. Dr. Cr. Accounts receivable Prepaid insurance 5,000 10,0
ID: 2504851 • Letter: N
Question
Nov. 30 Dec. 31
Dr. Cr. Dr. Cr.
Accounts receivable Prepaid insurance
5,000
10,000
7,500
3,000
Inventory Accounts payable
7,000
12,000
6,000
15,000
Wages payable
5,000
3,000
The following cash flow information also is available:
Required:
Determine the following for the month of December:
4. Wage expense.
Accounts receivable Prepaid insurance
5,000
10,000
7,500
3,000
Inventory Accounts payable
7,000
12,000
6,000
15,000
Wages payable
5,000
3,000
Explanation / Answer
1 . Sales revenue during December = $3,000 + $80,000 - $10,000 = $73,000
2 . Purchases during December = $15,000 + $60,000 - $12,000 = $63,000
Cost of goods sold during December = $7,000 + $63,000 - $6,000 = $64,000
3. Insurance expense during December = $5,000 + $5,000 - $7,500 = $2500
4 . Wage expense during December = $3,000 + $10,000 - $5,000 = $8,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.