Question

The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2017.

Account Title	Debits			Credits
Cash		5,400
Accounts receivable		2,400
Inventory		5,400
Equipment		11,400
Accumulated depreciation—equipment					3,900
Accounts payable					3,400
Common stock					9,000
Retained earnings					8,300
Sales revenue					0
Cost of goods sold		0
Salaries and wages expense		0
Rent expense		0
Advertising expense		0
Totals		24,600			24,600

The following transactions occurred during January 2018:

Jan.		1		Sold merchandise for cash, $3,900. The cost of the merchandise was $2,400. The company uses the perpetual inventory system.
		2		Purchased equipment on account for $5,900 from the Strong Company to be repaid within 30 days.
		4		Received a $200 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2.
		8		Sold merchandise on account for $5,400. The cost of the merchandise was $3,200.
		10		Purchased merchandise on account for $9,700.
		13		Purchased equipment for cash, $900.
		16		Paid the entire amount due to the Strong Company.
		18		Received $4,800 from customers on account.
		20		Paid $900 to the owner of the building for January’s rent.
		30		Paid employees $3,400 for salaries and wages for the month of January.
		31		Paid a cash dividend of $900 to shareholders.

rev: 08_23_2017_QC_CS-96227, 02_23_2018_QC_CS-118910, 06_14_2019_QC_CS-170957

Required:
2. Prepare general journal entries to record each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Journal entries

date	General Journal	Debit	Credit
Jan 1	cash	3900
	Sales revenue		3900
	Cost of goods sold	2400
	Merchandise inventory		2400
Jan 2	Equipment	5900
	Account payable		5900
Jan 4	Advertising expense	200
	Advertising payable		200
Jan 8	Account receivable	5400
	Sales revenue		5400
	Cost of goods sold	3200
	Merchandise inventory		3200
Jan 10	Merchandise inventory	9700
	Account payable		9700
Jan 13	equipment	900
	Cash		900
Jan 16	Account payable	5900
	Cash		5900
Jan 18	Cash	4800
	Account receivable		4800
Jan 20	Rent expense	900
	Cash		900
Jan 30	Salaries and wages expense	3400
	Cash		3400
Jan 31	Cash dividend	900
	Cash		900