Break it down and explain how to do this and figure it out. The Post-Closing Trial Balance

 

Break it down and explain how to do this and figure it out. 

Transcribed Image Text:

The Post-Closing Trial Balance of Salami, Inc. as of December 31, 2011 appears below: READ EACH DESCRIPTION CAREFULLY and record the transaction for its ending impact for 2012. NO QUESTIONS WILL BE ANSWERED. PRINT CLEARLY and USE COMPLETE Account Titles. Account Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Rent Prepaid Insurance Inventory Furniture and Fixtures Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Wages Expense Rent Expense Depreciation Expense Utility Expense Bad Debt Expense Insurance Expense Dividends Totals Dr 496,000 499,000 525,000 150,000 875,000 215,000 Cr. 50,000 85,000 750,000 80,000 1,200,000 595,000 2,760,000 2,760,000 1) Purchase of inventory for resale was $5,000,000. All purchases were made on account. 2) Payments for inventory purchased on account were $5,210,000. 3) Sales of merchandise totaled $11,200,000. Of this amount, 20% of the sales were made on account; the remaining sales were paid in cash. 4) The cost of the merchandise sold during the year was $4,000,000. T The Post-Closing Trial Balance of Salami, Inc. as of December 31, 2011 appears below: READ EACH DESCRIPTION CAREFULLY and record the transaction for its ending impact for 2012. NO QUESTIONS WILL BE ANSWERED. PRINT CLEARLY and USE COMPLETE Account Titles. Account Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Rent Prepaid Insurance Inventory Furniture and Fixtures Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Wages Expense Rent Expense Depreciation Expense Utility Expense Bad Debt Expense Insurance Expense Dividends Totals Dr 496,000 499,000 525,000 150,000 875,000 215,000 Cr. 50,000 85,000 750,000 80,000 1,200,000 595,000 2,760,000 2,760,000 1) Purchase of inventory for resale was $5,000,000. All purchases were made on account. 2) Payments for inventory purchased on account were $5,210,000. 3) Sales of merchandise totaled $11,200,000. Of this amount, 20% of the sales were made on account; the remaining sales were paid in cash. 4) The cost of the merchandise sold during the year was $4,000,000. T

Answer rating: 100% (QA)

Account Title Debit Credit Cash 7483000 Accounts Rece... View the full answer