Question

Comprehensive Problem 6 On December 1, 2019, Blue Company had the account balances shown below. Debit Credit Cash $6,800 Accumulated Depreciation—Equipment $1,300 Accounts Receivable 3,900 Accounts Payable 2,800 Inventory 1,815 * Common Stock 22,000 Equipment 21,100 Retained Earnings 7,515 $33,615 $33,615 *(3,300 x $0.55) The following transactions occurred during December. Dec. 3 Purchased 4,500 units of inventory on account at the cost of $0.65 per unit. 5 Sold 5,000 units of inventory on account for $0.92 per unit. (Blue sold 3,300 of the $0.55 units and 1,700 of the $0.65.) 7 Granted the December 5 customer $276 credit for 300 units of inventory returned costing $184. These units were returned to inventory. 17 Purchased 2,100 units of inventory for cash at $0.80 each. 22 Sold 1,900 units of inventory on account for $0.96 per unit. (Blue sold 1,900 of the $0.65 units.) Adjustment data: 1. Accrued salaries payable $500. 2. Depreciation $200 per month. Correct answer. Your answer is correct. Journalize the December transactions and adjusting entries, assuming Blue uses the perpetual inventory method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Entry field with correct answer Dec. 3 Entry field with correct answer Inventory Entry field with correct answer 2,925 Entry field with correct answer Accounts Payable Entry field with correct answer 2,925 Entry field with correct answer Dec. 5 Entry field with correct answer Accounts Receivable Entry field with correct answer 4,600 Entry field with correct answer Sales Revenue Entry field with correct answer 4,600 (To record sales revenue.) Entry field with correct answer Dec. 5 Entry field with correct answer Cost of Goods Sold Entry field with correct answer 2,920 Entry field with correct answer Inventory Entry field with correct answer 2,920 (To record cost of goods sold.) Entry field with correct answer Dec. 7 Entry field with correct answer Sales Returns and Allowances Entry field with correct answer 276 Entry field with correct answer Accounts Receivable Entry field with correct answer 276 (To record sales returns.) Entry field with correct answer Dec. 7 Entry field with correct answer Inventory Entry field with correct answer 184 Entry field with correct answer Cost of Goods Sold Entry field with correct answer 184 (To record cost of sales returns.) Entry field with correct answer Dec. 17 Entry field with correct answer Inventory Entry field with correct answer 1,680 Entry field with correct answer Cash Entry field with correct answer 1,680 Entry field with correct answer Dec. 22 Entry field with correct answer Accounts Receivable Entry field with correct answer 1,824 Entry field with correct answer Sales Revenue Entry field with correct answer 1,824 (To record sales revenue.) Entry field with correct answer Dec. 22 Entry field with correct answer Cost of Goods Sold Entry field with correct answer 1,235 Entry field with correct answer Inventory Entry field with correct answer 1,235 (To record cost of goods sold.) Entry field with correct answer Dec. 31 Entry field with correct answer Salaries and Wages Expense Entry field with correct answer 500 Entry field with correct answer Salaries and Wages Payable Entry field with correct answer 500 (To record the accrued expense.) Entry field with correct answer Dec. 31 Entry field with correct answer Depreciation Expense Entry field with correct answer 200 Entry field with correct answer Accumulated Depreciation-Equipment Entry field with correct answer 200 (To record depreciation expense.) SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Partially correct answer. Your answer is partially correct. Enter the December 1 balances in the ledger T-accounts and post the December transactions. (Post entries in the order of journal entries presented above.) Cash Entry field with correct answer Dec. 1 Bal. Entry field with correct answer 6,800 Entry field with correct answer Dec. 17 Entry field with correct answer 1,680 Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 5,120 Entry field with incorrect answer Dec. 31 Bal. Entry field with incorrect answer 1,680 Accounts Receivable Entry field with correct answer Dec. 1 Bal. Entry field with correct answer 3,900 Entry field with correct answer Dec. 7 Entry field with correct answer 276 Entry field with correct answer Dec. 5 Entry field with correct answer 4,600 Entry field with correct answer Entry field with correct answer Dec. 22 Entry field with correct answer 1,824 Entry field with correct answer Entry field with correct answer Dec. 31 Bal. Entry field with incorrect answer 10,600 Entry field with correct answer Inventory Entry field with correct answer Dec. 1 Bal. Entry field with correct answer 1,815 Entry field with correct answer Dec. 5 Entry field with correct answer 2,920 Entry field with correct answer Dec. 3 Entry field with correct answer 2,925 Entry field with correct answer Dec. 22 Entry field with correct answer 1,235 Entry field with correct answer Dec. 7 Entry field with correct answer 184 Entry field with correct answer Entry field with correct answer Dec. 17 Entry field with correct answer 1,680 Entry field with correct answer Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 2,449 Entry field with correct answer Entry field with correct answer Equipment Entry field with correct answer Dec. 1 Bal. Entry field with correct answer 21,100 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 21,100 Entry field with correct answer Entry field with correct answer Accounts Payable Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 1 Bal. Entry field with correct answer 2,800 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 3 Entry field with correct answer 2,925 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 5,725 Accumulated Depreciation—Equipment Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 1 Bal. Entry field with correct answer 1,300 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 31 Entry field with correct answer 200 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 1,500 Salaries and Wages Payable Entry field with correct answer Entry field with incorrect answer 0 Entry field with incorrect answer Dec. 5 Entry field with correct answer 500 Entry field with correct answer Entry field with incorrect answer 0 Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 500 Common Stock Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 1 Bal. Entry field with correct answer 22,000 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 22,000 Retained Earnings Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 1 Bal. Entry field with correct answer 7,515 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 7,515 Sales Revenue Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 5 Entry field with correct answer 4,600 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 22 Entry field with correct answer 1,824 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 6,424 Salaries and Wages Expense Entry field with correct answer Dec. 31 Entry field with correct answer 500 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 500 Entry field with correct answer Entry field with correct answer Cost of Goods Sold Entry field with correct answer Dec. 5 Entry field 2,920 Entry field Dec. 7 Entry field with correct answer 184 Entry field Dec. 22 Entry field with correct answer 1,235 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 3,971 Entry field with correct answer Entry field with correct answer Sales Returns & Allowances Entry field with correct answer Dec. 7 Entry field with correct answer 276 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 276 Entry field with correct answer Entry field with correct answer Depreciation Expense Entry field with correct answer Dec. 31 Entry field with correct answer 200 Entry field with correct answer Entry field with correct answer Entry field with correct answer Dec. 31 Bal. Entry field with correct answer 200 Entry field with correct answer Entry field with correct answer SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Partially correct answer. Your answer is partially correct. Prepare an adjusted trial balance as of December 31, 2019. BLUE COMPANY Adjusted Trial Balance Entry field with correct answer December 31, 2019 Debit Credit Entry field with correct answer Cash $Entry field with correct answer 5,120 $Entry field with correct answer Entry field with correct answer Accounts Receivable Entry field with correct answer 10,048 Entry field with correct answer Entry field with correct answer Inventory Entry field with correct answer 2,449 Entry field with correct answer Entry field with correct answer Equipment Entry field with correct answer 21,100 Entry field with correct answer Entry field with correct answer Accounts Payable Entry field with correct answer Entry field with correct answer 5,725 Entry field with correct answer Accumulated Depreciation-Equipment Entry field with correct answer Entry field with correct answer 1,500 Entry field with correct answer Salaries and Wages Expense Entry field with correct answer 500 Entry field with correct answer Entry field with correct answer Cost of Goods Sold Entry field with correct answer 3,971 Entry field with correct answer Entry field with correct answer Sales Returns and Allowances Entry field with correct answer 276 Entry field with correct answer Entry field with correct answer Depreciation Expense Entry field with incorrect answer 205 Entry field with correct answer Entry field with correct answer Sales Revenue Entry field with correct answer Entry field with correct answer 6,424 Entry field with correct answer Salaries and Wages Payable Entry field with correct answer Entry field with correct answer 500 Entry field with correct answer Common Stock Entry field with correct answer Entry field with correct answer 22,000 Entry field with correct answer Retained Earnings Entry field with correct answer Entry field with correct answer 7,515 Totals $Entry field with correct answer 43,664 $Entry field with correct answer 43,664 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Partially correct answer. Your answer is partially correct. Prepare an income statement for December 2019. BLUE COMPANY Income Statement Entry field with correct answer For the Month Ended December 31, 2019 Entry field with correct answer Sales Revenues $Entry field with correct answer 6,424 Entry field with correct answer Less : Entry field with correct answer Sales Returns and Allowances Entry field with correct answer (276) Entry field with correct answer Net Sales Entry field with correct answer 6,148 Entry field with correct answer Cost of Goods Sold Entry field with correct answer (3,971) Entry field with correct answer Gross Profit Entry field with correct answer 2,177 Entry field with correct answer Operating Expenses Entry field with incorrect answer Inventory $Entry field with incorrect answer 2,449 Entry field with correct answer Depreciation Expense Entry field with incorrect answer 205 Entry field with incorrect answer 2,654 Entry field with correct answer Net Income / (Loss) $Entry field with incorrect answer (477) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Partially correct answer. Your answer is partially correct. Prepare a classified balance sheet at December 31, 2019. (List Current Assets in order of liquidity.) BLUE COMPANY Balance Sheet Entry field with correct answer December 31, 2019 Assets Entry field with correct answer Current Assets Entry field with correct answer Cash $Entry field with correct answer 5,120 Entry field with correct answer Accounts Receivable Entry field with correct answer 10,048 Entry field with correct answer Inventory Entry field with correct answer 2,449 Entry field with correct answer Total Current Assets $Entry field with correct answer 17,617 Entry field with correct answer Property, Plant and Equipment Entry field with correct answer Equipment Entry field with correct answer 21,100 Entry field with correct answer Less : Entry field with correct answer Accumulated Depreciation-Equipment Entry field with correct answer (1,500) Entry field with correct answer 19,600 Entry field with correct answer Total Assets $Entry field with correct answer 37,217 Liabilities and Stockholders' Equity Entry field with correct answer Current Liabilities Entry field with correct answer Accounts Payable $Entry field with correct answer 5725 Entry field with correct answer Salaries and Wages Payable Entry field with correct answer 500 Entry field with correct answer Total Current Liabilities $Entry field with correct answer 6,225 Entry field with correct answer Stockholders' Equity Entry field with correct answer Common Stock Entry field with correct answer 22,000 Entry field with correct answer Retained Earnings Entry field with correct answer 8,992 Entry field with correct answer 30,992 Entry field with correct answer Total Liabilities and Stockholders' Equity $Entry field with incorrect answer 38,897 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. (e) Compute ending inventory and cost of goods sold under FIFO, assuming Blue Company uses the periodic inventory system. Ending Inventory $Entry field with incorrect answer 11,626 Cost of Goods Sold $Entry field with incorrect answer 3,971 (f) Compute ending inventory and cost of goods sold under LIFO, assuming Blue Company uses the periodic inventory system. Ending Inventory $Entry field with incorrect answer 2,449 Cost of Goods Sold $Entry field with incorrect answer 3,971 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT

Answer 1