Comprehensive Problem 5 (Part Level Submission) On December 1, 2017, Prosen Dist

Question

Comprehensive Problem 5 (Part Level Submission) On December 1, 2017, Prosen Distributing Company had the following account balances. Debit $7,000 Accumulated Depreciation-Equipment Credit Cash Accounts Receivable Inventory Supplies Equipment $2,310 4,800 1,100 30,000 10,590 $48,800 5,000 12,300 Accounts Payable Salaries and Wages Payable 1,400 Common Stock 23,100 Retained Earnings $48,800 During December, the company completed the following summary transactions Dec. 6 Paid $1,650 for salaries and wages due employees, of which $550 is for December and $1,100 is for November salaries and wa 8 10 13 15 18 20 23 27 Received $1,800 cash from customers in payment of account (no discount allowed). Sold merchandise for cash $6,400. The cost of the merchandise sold was $4,200. Purchased merchandise on account from Maglio Co. $9,000, terms 2/10, n/30. Purchased supplies for cash $1,800. Sold merchandise on account $12,100, terms 3/10, n/30. The cost of the merchandise sold was $8,0 Paid salaries and wages $1,600. Paid Maglio Co. in full, less discount. Received collections in full, less discounts, from customers billed on December 18. Your answer is correct.

Explanation / Answer

b. Required Ledger accounts are as prepared below:

Cash Particulars Amount Particulars Amount Beg Balance 7,000 Dec-06 1,650 Dec-08 1,800 Dec-15 1,800 Dec-10 6,400 Dec-20 1,600 Dec-27 11,737 Dec-23 8,820 26,937 13,870 Ending balance 13,067 Account Receivable Particulars Amount Particulars Amount Beg Balance 5,000 Dec-08 1,800 Dec-18 12,100 Dec-27 12,100 17,100 13,900 Ending balance 3,200 Inventory Particulars Amount Particulars Amount Beg Balance 12,300 Dec-10 4,200 Dec-13 9,000 Dec-18 8,000 Dec-23 180 21,300 12,380 Ending balance 8,920 Supplies Particulars Amount Particulars Amount Beg Balance 1,400 Dec-15 1,800 3,200 0 Ending balance 3,200 Equipment Particulars Amount Particulars Amount Beg Balance 23,100 23,100 0 Ending balance 23,100 Accumulated dep-Equipment Particulars Amount Particulars Amount Beg Balance 2,310 2,310 Ending balance 2,310 Accounts Payable Particulars Amount Particulars Amount Dec-23 9,000 Beg Balance 4,800 Dec-13 9,000 9,000 13,800 Ending balance 4,800 Salaries and Wages payable Particulars Amount Particulars Amount Dec-06 1,100 Beg Balance 1,100 1,100 1,100 Ending balance 0 Common Stock Particulars Amount Particulars Amount Beg Balance 30,000 0 30,000 Ending balance 30,000 Retained Earnings Particulars Amount Particulars Amount Beg Balance 10,590 0 10,590 Ending balance 10,590 Salaries and Wages Expense Particulars Amount Particulars Amount Dec-06 550 Dec-20 1,600 2,150 0 Ending balance 2,150 Sales Particulars Amount Particulars Amount Dec-10 6,400 Dec-18 12,100 18,500 Ending balance 18,500 Cost of goods sold Particulars Amount Particulars Amount Dec-10 4,200 Dec-18 8,000 12,200 0 Ending balance 12,200 Sales discounts Particulars Amount Particulars Amount Dec-27 363 363 0 Ending balance 363

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