1. The following account balances are shown on November 30, 1999, for the Clever Bookstore:
   Cash $ 8,000 
2. Accounts payable $ 4,000
   Accounts receivable 9,000 
3. Salaries payable 2,000
   Inventory 60,000 
4. Notes payable 35,000
   Supplies 3,000 
5. J. Clever, capital 39,000
   Total $80,000 
6. 
   
7. The following transactions occurred during December.
   1. Paid workers the $2,000 owed them on November 30.
   2. Made sales totaling $40,000. One-half of the sales were for cash. The other half were on account. The cost of goods sold was $25,000.
   3. Purchased inventory on account, $15,000.
   4. Collected in cash $22,000 of receivables.
   5. Used supplies totaling $800.
   6. Paid accounts payable of $12,000.
   7. Paid December’s interest on the note payable in the amount of $300.

Required
a. Prepare the journal entries to record these transactions.
b. Prepare any necessary adjusting entries.
c. Post all journal entries to T-accounts.
d. Prepare a trial balance.
e. Prepare a balance sheet for Clever Bookstore as of December 31, 1999.

Answer rating: 100% (QA)

a Journal entries to record the transactions 1 To record payment to workers Debit Salaries Payable 2000 Credit Cash 2000 2 To record sales Debit Accou... View the full answer