The following is the post-closing trial balance for the Whitlow
Manufacturing Corporation as of December 31, 2020.
Account Title | Debits | Credits | ||||
Cash | 4,100 | |||||
Accounts receivable | 1,100 | |||||
Inventory | 4,100 | |||||
Equipment | 10,100 | |||||
Accumulated depreciation | 2,600 | |||||
Accounts payable | 2,100 | |||||
Accrued liabilities | 0 | |||||
Common stock | 9,000 | |||||
Retained earnings | 5,700 | |||||
Sales revenue | 0 | |||||
Cost of goods sold | 0 | |||||
Salaries expense | 0 | |||||
Rent expense | 0 | |||||
Advertising expense | 0 | |||||
Totals | 19,400 | 19,400 | ||||
The following transactions occurred during January 2021:
Jan. | 1 | Sold merchandise for cash, $2,600. The cost of the merchandise was $1,100. The company uses the perpetual inventory system. | ||
2 | Purchased equipment on account for $4,600 from the Strong Company. | |||
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 $4,100. The cost of the merchandise was $1,900. | |||
10 | Purchased merchandise on account for $9,050. | |||
13 | Purchased equipment for cash, $900. | |||
16 | Paid the entire amount due to the Strong Company. | |||
18 | Received $4,000 from customers on account. | |||
20 | Paid $900 to the owner of the building for January’s rent. | |||
30 | Paid employees $2,100 for salaries for the month of January. | |||
31 | Paid a cash dividend of $900 to shareholders. |
Problem 2-2 (Algo) Parts 1 and 3
1. & 3. Enter the beginning balances as of
January 1, 2021 and post the entries to T-accounts. (Enter
the date of the transaction in the column next to the
amount.)
Get Answers For Free
Most questions answered within 1 hours.