COMPREHENSIVE PROBLEM
CPS On December 1, 2017, Rodriguez Distributing Company had the following account balances.
Debit
Cash
$ 7,200
4,600
Accounts Receivable
Accumulated Depreciation Equipment
$2,200
Inventory
Supplies
12,000
1,200
Accounts Payable
Salaries and Wages Payable
4,500 1,000
Equipment
Owner's Capital
39,300
$47,000
22,000
$47,000
Credit
During December, the company completed the following summary transactions.
Dec. 6 Paid $1,600 for salaries and wages due employees, of which $600 is for December and
$1,000 is for November salaries and wages payable.
8 Received $2,200 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6,300. The cost of the merchandise sold was $4,100.
13 Purchased merchandise on account from Boehm Co. $9,000, terms 2/10, n/30. 15 Purchased supplies for cash $2,000
18 Sold merchandise on account $15,000, terms 3/10, n/30. The cost of the merchandise sold
was $10,000.
20 Paid salaries and wages $1,800. 23 Paid Boehm Co. in full, less discount.
27 Received collections in full, less discounts, from customers billed on December 18.
Adjustment data:
1. Accrued salaries and wages payable $840.
2. Depreciation $200 per month.
3. Supplies on hand $1,500.
Instructions
(a) Journalize the December transactions using a perpetual inventory system.
(b) Enter the December 1 balances in the ledger T-accounts and post the December transactions. Use Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Sales Revenue, Sales Discounts, and Supplies Expense.
(c) Journalize and post adjusting entries.
(d) Prepare an adjusted trial balance.
(e) Prepare an income statement and an owner's equity statement for December ance sheet at December 31.
(d) Totals S and a classified bal- (e) Net income $
55 Accounting for Merchandising Operations