Comprehensive Problem 5 (Part Level Submission)

On December 1, 2014, Boline Distributing Company had the following account balances.

		Debit				Credit
Cash		$7,030		Accumulated DepreciationEquipment		$2,420
Accounts Receivable		4,700		Accounts Payable		4,670
Inventory		11,530		Salaries and Wages Payable		1,100
Supplies		1,380		Common Stock		14,790
Equipment		24,200		Retained Earnings		25,860
		$48,840				$48,840

During December, the company completed the following summary transactions.

Dec. 6

Paid $1,810 for salaries due employees, of which $710 is for December and $1,100 is for November salaries payable.

8

Received $1,800 cash from customers in payment of account (no discount allowed).

10

Sold merchandise for cash $6,510. The cost of the merchandise sold was $4,030.

13

Purchased merchandise on account from Gong Co. $8,700, terms 2/10, n/30.

15

Purchased supplies for cash $1,630.

18

Sold merchandise on account $12,500, terms 3/10, n/30. The cost of the merchandise sold was $8,050.

20

Paid salaries $1,630.

23

Paid Gong Co. in full, less discount.

27Received collections in full, less discounts, from customers billed on December 18.

Adjustment data:

1.		Accrued salaries payable $670.
2.		Depreciation $220 per month.
3.		Supplies on hand $1,520.
4.		Income tax due and unpaid at December 31 is $160.

(f) Prepare a classified balance sheet at December 31. (List current assets in order of liquidity.) Collapse question part BOLINE DISTRIBUTING COMPANY Balance Sheet December 31, 2014 Assets