The following is selected information from the Wolf Company's balance sheet as of November 30 and December
Question:
The following is selected information from the Wolf Company's balance sheet as of November 30 and December 31, 2018. The company uses the perpetual inventory system and all sales to customers are made on credit.
November 30 | December 31 | ||||||||||||||
Debts | Credits | Debts | Credits | ||||||||||||
accounts receivable | 9,900 | 2,900 | |||||||||||||
prepaid insurance | 4,900 | 7,400 | |||||||||||||
Inventory | 6,900 | 5,900 | |||||||||||||
Accounts payable | 11,900 | 14,900 | |||||||||||||
Wages and salaries payable | 4,900 | 2,900 | |||||||||||||
The following cash flow information is also available:
A. Cash billed from credit customers, $79,000.
B. Cash paid for insurance, $4,900.
C. Cash paid to suppliers of inventory, $59,000 (all accounts payable relate to inventory purchases).
D. Cash paid to employees for wages and salaries, $9,900.
Required:
1. Determine the following for the month of December:
a. | sales revenue | |
b. | cost of goods sold | |
C. | insurance costs | |
d. | Wage and salary expenses |
2. Prepare summary journal entries to record sales for the month and the cost of those sales.
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas