The Post-Closing Trial Balance of Salami, Inc. as of December 31, 2011 appears below: READ EACH...
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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 Dr Cr. 496,000 Accounts Receivable 499,000 Allowance for Doubtful Accounts 50,000 Prepaid Rent 525,000 Prepaid Insurance 150,000 Inventory 875,000 Furniture and Fixtures 215,000 Accumulated Depreciation 85,000 Accounts Payable 750,000 Wages Payable 80,000 Common Stock 1,200,000 595,000 Retained Earnings Sales Revenue Cost of Goods Sold Wages Expense Rent Expense Depreciation Expense Utility Expense Bad Debt Expense Insurance Expense Dividends Totals 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. 5) Collections on Accounts Receivable during the year were $2,380,000. 6) Cash payments to employees during the year, totaled $1,215,000. This was both towards unpaid salaries at the beginning of the year and for salaries earned during 2012. 7) Paid $100,000 cash for utilities during the year. 8) During the year $56,000 of customer accounts were written off as uncollectible. 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 Dr Cr. 496,000 Accounts Receivable 499,000 Allowance for Doubtful Accounts 50,000 Prepaid Rent 525,000 Prepaid Insurance 150,000 Inventory 875,000 Furniture and Fixtures 215,000 Accumulated Depreciation 85,000 Accounts Payable 750,000 Wages Payable 80,000 Common Stock 1,200,000 595,000 Retained Earnings Sales Revenue Cost of Goods Sold Wages Expense Rent Expense Depreciation Expense Utility Expense Bad Debt Expense Insurance Expense Dividends Totals 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. 5) Collections on Accounts Receivable during the year were $2,380,000. 6) Cash payments to employees during the year, totaled $1,215,000. This was both towards unpaid salaries at the beginning of the year and for salaries earned during 2012. 7) Paid $100,000 cash for utilities during the year. 8) During the year $56,000 of customer accounts were written off as uncollectible.
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Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
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