On January 1, 2024, Displays Incorporated had the following account balances: Account Title Cash Debit $...

 

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On January 1, 2024, Displays Incorporated had the following account balances: Account Title Cash Debit $ 30,000 Credit Accounts receivable 27,000 Supplies 33,000 Inventory 64,000 Land 235,000 Accounts payable Notes payable (5%, due next year) Common stock Retained earnings $ 34,000 28,000 194,000 133,000 Totals $ 389,000 $ 389,000 From January 1 to December 31, the following summary transactions occurred: a. Purchased inventory on account for $338,000. b. Sold inventory on account for $610,000. The cost of the inventory sold was $318,000. c. Received $572,000 from customers on accounts receivable. d. Paid freight on inventory received, $32,000. e. Paid $328,000 to inventory suppliers on accounts payable of $334,000. The difference reflects purchase discounts of $6,000. f. Paid rent for the current year, $50,000. The payment was recorded to Rent Expense. g. Paid salaries for the current year, $158,000. The payment was recorded to Salaries Expense. Year-end adjusting entries: a. Supplies on hand at the end of the year are $5,000. b. Accrued interest expense on notes payable for the year. c. Accrued income taxes at the end of December are $26,000. On January 1, 2024, Displays Incorporated had the following account balances: Account Title Cash Debit $ 30,000 Credit Accounts receivable 27,000 Supplies 33,000 Inventory 64,000 Land 235,000 Accounts payable Notes payable (5%, due next year) Common stock Retained earnings $ 34,000 28,000 194,000 133,000 Totals $ 389,000 $ 389,000 From January 1 to December 31, the following summary transactions occurred: a. Purchased inventory on account for $338,000. b. Sold inventory on account for $610,000. The cost of the inventory sold was $318,000. c. Received $572,000 from customers on accounts receivable. d. Paid freight on inventory received, $32,000. e. Paid $328,000 to inventory suppliers on accounts payable of $334,000. The difference reflects purchase discounts of $6,000. f. Paid rent for the current year, $50,000. The payment was recorded to Rent Expense. g. Paid salaries for the current year, $158,000. The payment was recorded to Salaries Expense. Year-end adjusting entries: a. Supplies on hand at the end of the year are $5,000. b. Accrued interest expense on notes payable for the year. c. Accrued income taxes at the end of December are $26,000.

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