On December 1, 2017, Prosen Distributing Company had the following account balances.

	Debit		Credit
Cash	$?7,200	Accumulated Depreciation—Equipment
Accounts Receivable	4,600		$?2,200
Inventory	12,000	Accounts Payable	4,500
Supplies	1,200	Salaries and Wages Payable	1,000
Equipment	22,000	Common Stock	30,000
	$47,000	Retained Earnings	9,300
			$47,000

During December, the company completed the following summary transactions.

Dec.??6	Paid $1,600 for salaries and wages due employees, of which $600 is for December and $1,000 is for November salaries and wages payable.
8	Received $1,900 cash from customers in payment of account (no discount allowed).
10	Sold merchandise for cash $6,300. The cost of the merchandise sold was $4,100.
13	Purchased merchandise on account from Maglio Co. $9,000, terms 2/10, n/30.
15	Purchased supplies for cash $2,000.
18	Sold merchandise on account $12,000, terms 3/10, n/30. The cost of the merchandise sold was $8,000.
20	Paid salaries and wages $1,800.
23	Paid Maglio Co. in full, less discount.
27	Received collections in full, less discounts, from customers billed on December 18.

Adjustment data:

Accrued salaries and wages payable $800.

Depreciation $200 per month.

Supplies on hand $1,500.

(a) Journalized the December transactions using a perpetual inventory system.

(b) Enter the December 1 balances in the ledger T-accounts and post the December transactions. Use Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Sales Revenue, Sales Discounts, and Supplies Expense.

(c) Journalized and post adjusting entries.

(d) Prepare an adjusted trial balance.

Answer rating: 100% (QA)

a Jouranalize the December transactions using a perpetual inventory system b Posting of above transa... View the full answer