College Coasters is a San Diego–based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1. Cash $ 9,600 Accounts Receivable 1,920 Inventory 500 Prepaid Rent 480 Equipment 620 Accumulated Depreciation 110 Accounts Payable 1,400 Salaries and Wages Payable 300 Income Taxes Payable 0 Common Stock 5,800 Retained Earnings 2,600 Sales Revenue 15,380 Cost of Goods Sold 8,280 Rent Expense 880 Salaries and Wages Expense 2,000 Depreciation Expense 110 Income Tax Expense 0 Office Expense 1,200 The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1 consisted of 1,000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.50. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method. During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below. Purchased 400 coasters on account from the regular supplier on 12/1 at a unit cost of $0.52, with terms of n/60. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.55, with terms of n/60. Sold 1,600 coasters on account on 12/3 at a unit price of $1.10. Collected $990 from customers on account on 12/4. Paid the supplier $1,410 cash on account on 12/18. Paid employees $470 on 12/23, of which $290 related to work done in November and $180 was for wages up to December 22. Loaded 90 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawaii. The sale was made FOB destination with terms of n/60. Other relevant information includes the following at 12/31: College Coasters has not yet recorded $160 of office expenses incurred in December on account. The company estimates that the equipment depreciates at a rate of $9 per month. One month of depreciation needs to be recorded. Wages for the period from December 23–31 are $100 and will be paid on January 15. The $480 of Prepaid Rent relates to a six-month period ending on May 31 of next year. The company incurred $700 of income tax but has made no tax payments this year. No shrinkage or damage was discovered when the inventory was counted on December 31. The company did not declare dividends and there were no transactions involving common stock. Prepare the journal entries to record the transactions (a) through (n).

College Coasters is a San Diego–based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1. Cash $ 9,600 Accounts Receivable 1,920 Inventory 500 Prepaid Rent 480 Equipment 620 Accumulated Depreciation 110 Accounts Payable 1,400 Salaries and Wages Payable 300 Income Taxes Payable 0 Common Stock 5,800 Retained Earnings 2,600 Sales Revenue 15,380 Cost of Goods Sold 8,280 Rent Expense 880 Salaries and Wages Expense 2,000 Depreciation Expense 110 Income Tax Expense 0 Office Expense 1,200 The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1 consisted of 1,000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.50. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method. During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below. Purchased 400 coasters on account from the regular supplier on 12/1 at a unit cost of $0.52, with terms of n/60. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.55, with terms of n/60. Sold 1,600 coasters on account on 12/3 at a unit price of $1.10. Collected $990 from customers on account on 12/4. Paid the supplier $1,410 cash on account on 12/18. Paid employees $470 on 12/23, of which $290 related to work done in November and $180 was for wages up to December 22. Loaded 90 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawaii. The sale was made FOB destination with terms of n/60. Other relevant information includes the following at 12/31: College Coasters has not yet recorded $160 of office expenses incurred in December on account. The company estimates that the equipment depreciates at a rate of $9 per month. One month of depreciation needs to be recorded. Wages for the period from December 23–31 are $100 and will be paid on January 15. The $480 of Prepaid Rent relates to a six-month period ending on May 31 of next year. The company incurred $700 of income tax but has made no tax payments this year. No shrinkage or damage was discovered when the inventory was counted on December 31. The company did not declare dividends and there were no transactions involving common stock. Prepare the journal entries to record the transactions (a) through (n).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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College Coasters is a San Diego–based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1.

Cash	$ 9,600
Accounts Receivable	1,920
Inventory	500
Prepaid Rent	480
Equipment	620
Accumulated Depreciation	110
Accounts Payable	1,400
Salaries and Wages Payable	300
Income Taxes Payable	0
Common Stock	5,800
Retained Earnings	2,600
Sales Revenue	15,380
Cost of Goods Sold	8,280
Rent Expense	880
Salaries and Wages Expense	2,000
Depreciation Expense	110
Income Tax Expense	0
Office Expense	1,200

The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1 consisted of 1,000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.50. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method.

During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below.

Purchased 400 coasters on account from the regular supplier on 12/1 at a unit cost of $0.52, with terms of n/60.
Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.55, with terms of n/60.
Sold 1,600 coasters on account on 12/3 at a unit price of $1.10.
Collected $990 from customers on account on 12/4.
Paid the supplier $1,410 cash on account on 12/18.
Paid employees $470 on 12/23, of which $290 related to work done in November and $180 was for wages up to December 22.
Loaded 90 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawaii. The sale was made FOB destination with terms of n/60.

Other relevant information includes the following at 12/31:

College Coasters has not yet recorded $160 of office expenses incurred in December on account.
The company estimates that the equipment depreciates at a rate of $9 per month. One month of depreciation needs to be recorded.
Wages for the period from December 23–31 are $100 and will be paid on January 15.
The $480 of Prepaid Rent relates to a six-month period ending on May 31 of next year.
The company incurred $700 of income tax but has made no tax payments this year.
No shrinkage or damage was discovered when the inventory was counted on December 31.
The company did not declare dividends and there were no transactions involving common stock.

Prepare the journal entries to record the transactions (a) through (n).

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