Spring Company is a merchandising company. At the beginning of December, 2020, Spring had the following...

 

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Spring Company is a merchandising company. At the beginning of December, 2020, Spring had the following account balances. Accounts Cash Accounts Receivable Inventory Supplies Equipment Total Requirements: Debit Accounts $ 11,800 S 7,500 Accounts Payable 18,000 4,500 25,000 Accumulated Depreciation-Equipment 66,800 Salaries and Wages Payable Owner's Capital $ $ Credit 3,700 8,900 4,200 50,000 66,800 1. The following ten transactions were completed during December: given by student (at least two purchase of merchandise transactions and at least two sales of merchandise transactions; at least one purchase of merchandise transaction with discount term and Spring paid within discount period; at least one sales of merchandise transaction with discount term and Spring's customer paid within discount period). (1.5 marks) 2. Journalize the December transactions using a perpetual inventory system. (2.25 marks) 3. Using T-accounts, enter the beginning balances in the ledger accounts and post the December transactions. (2.25 marks) 4. At least three adjusting transations are give by student. Journalize the adjusting entries that were made and post adjusting entries to ledgers. (1 mark) 5. Prepare an adjusted trial balance on December 31, 2020. (0.5 marks) 6. Prepare a single-step income statement for December, 2020. (1 mark) 7. Journalize and post the closing entries that are necessary. (1 mark) Spring Company is a merchandising company. At the beginning of December, 2020, Spring had the following account balances. Accounts Cash Accounts Receivable Inventory Supplies Equipment Total Requirements: Debit Accounts $ 11,800 S 7,500 Accounts Payable 18,000 4,500 25,000 Accumulated Depreciation-Equipment 66,800 Salaries and Wages Payable Owner's Capital $ $ Credit 3,700 8,900 4,200 50,000 66,800 1. The following ten transactions were completed during December: given by student (at least two purchase of merchandise transactions and at least two sales of merchandise transactions; at least one purchase of merchandise transaction with discount term and Spring paid within discount period; at least one sales of merchandise transaction with discount term and Spring's customer paid within discount period). (1.5 marks) 2. Journalize the December transactions using a perpetual inventory system. (2.25 marks) 3. Using T-accounts, enter the beginning balances in the ledger accounts and post the December transactions. (2.25 marks) 4. At least three adjusting transations are give by student. Journalize the adjusting entries that were made and post adjusting entries to ledgers. (1 mark) 5. Prepare an adjusted trial balance on December 31, 2020. (0.5 marks) 6. Prepare a single-step income statement for December, 2020. (1 mark) 7. Journalize and post the closing entries that are necessary. (1 mark)

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Ans123 4 T Accounts Ref Account 1 Inventory Cash cash purchase of inventory 2 Inventory Accounts Pay... View the full answer