Journalize the December transactions. (
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On December 1, 2020, Bonita Company had the following account balances.
During December, the company completed the following transactions.
Adjustment data:
| Debit | Credit | |||||
| Cash | $17,300 | $3,000 | ||||
| Notes Receivable | 2,500 | Accounts Payable | 6,200 | |||
| 7,700 | Owner’s Capital | 64,700 | ||||
| Inventory | 15,900 | $73,900 | ||||
| Prepaid Insurance | 1,500 | |||||
| Equipment | 29,000 | |||||
| $73,900 |
During December, the company completed the following transactions.
| Dec. 7 | Received $3,600 cash from customers in payment of account (no discount allowed). | |
| 12 | Purchased merchandise on account from Vance Co. $11,000, terms 1/10, n/30. | |
| 17 | Sold merchandise on account $16,300, terms 2/10, n/30. The cost of the merchandise sold was $9,200. | |
| 19 | Paid salaries $2,200. | |
| 22 | Paid Vance Co. in full, less discount. | |
| 26 | Received collections in full, less discounts, from customers billed on December 17. | |
| 31 | Received $2,800 cash from customers in payment of account (no discount allowed). |
Adjustment data:
| 1. | Depreciation $210 per month. | |
| 2. | Insurance expired $400. |
(a)
Journalize the December transactions. (Assume a perpetual inventory system.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Account Titles and Explanation
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Debit
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Credit
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| Dec. 7Dec. 12Dec. 17Dec. 19Dec. 22Dec. 26Dec. 31 |
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| Dec. 7Dec. 12Dec. 17Dec. 19Dec. 22Dec. 26Dec. 31 |
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| Dec. 7Dec. 12Dec. 17Dec. 19Dec. 22Dec. 26Dec. 31 |
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(To record sales)
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| Dec. 7Dec. 12Dec. 17Dec. 19Dec. 22Dec. 26Dec. 31 |
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(To record cost of goods sold)
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| Dec. 7Dec. 12Dec. 17Dec. 19Dec. 22Dec. 26Dec. 31 |
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| Dec. 7Dec. 12Dec. 17Dec. 19Dec. 22Dec. 26Dec. 31 |
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