The general ledger of Zips Storage solutions at December 22,2017 is provided. Zips Storage uses a perpetual inventory system.
The following are the balance of the transactions for the month of December:
December 22 Purchased inventory for $14,100 on account, terms 2/10, N/30.
December 24 Returned $600 of inventory purchased 12/22 due to a problem with the order.
December 27 paid for the inventory purchased on 12/22.
December 28 Sold 600 storage bins on account at a price of $6 each with a cost of $5 per bin.
December 30 Wrote-off an account for a customer who declared bankruptcy, $1,100.
Required:
1. Record each of the summary transactions listed above.
2. Post the transactions to the accounts.
3. Complete the worksheet. Insurance expired during the year is $5,000. Supplies remaining on hand at the end of the year equal $2,000. Depreciation on the equipment of $2,000. Zips Storage solutions estimates the percentage of uncollectible accounts to be 30% receivables. The note payable is a 6% 2-year note dated 6/1/2016.
5. Journalize the necessary adjusting entries.
6. Post the adjusting entries.
7. Complete the income statement (7.5 points) statement of stockholders' equity (5 points) and closing entries
8. Record the closing entries
9. Post the closing entries
10. Complete a post-closing trial balance.