On December 1, 2022, Matthias Company had the following account balances. Debit Credit Cash $4,300 Accumulated Depreciation-Equipment $1,600 Accounts Receivable 4,100 Accounts Payable 3,100 Inventory 1,680 Common Stock 20,600 Equipment 22,900 Retained Earnings 7,680 $32,980 $32.980 *(2,800 x $0.60) The following transactions occurred during December. Dec. 3 Purchased 3,900 units of inventory on account at a cost of $0.77 per unit. 5 Sold 4,500 units of inventory on account for $0.90 per unit. (Matthias sold 2,800 of the $0.60 units and 1,700 of the $0.77.) 7 Granted the December 5 customer $180 credit for 200 units of inventory returned costing $144. These units were returned to inventory. 17 Purchased 2,500 units of inventory for cash at $0.80 each. 17 Purchased 2,500 units of inventory for cash at $0.80 each. 22 Sold 2,100 units of inventory on account for $0.95 per unit. (Matthias sold 2,100 of the $0.77 units.) Adjustment data: 1. Accrued salaries payable $430. 2. Depreciation $210 per month.

On December 1, 2022, Matthias Company had the following account balances. Debit Credit Cash $4,300 Accumulated Depreciation-Equipment $1,600 Accounts Receivable 4,100 Accounts Payable 3,100 Inventory 1,680 Common Stock 20,600 Equipment 22,900 Retained Earnings 7,680 $32,980 $32.980 *(2,800 x $0.60) The following transactions occurred during December. Dec. 3 Purchased 3,900 units of inventory on account at a cost of $0.77 per unit. 5 Sold 4,500 units of inventory on account for $0.90 per unit. (Matthias sold 2,800 of the $0.60 units and 1,700 of the $0.77.) 7 Granted the December 5 customer $180 credit for 200 units of inventory returned costing $144. These units were returned to inventory. 17 Purchased 2,500 units of inventory for cash at $0.80 each. 17 Purchased 2,500 units of inventory for cash at $0.80 each. 22 Sold 2,100 units of inventory on account for $0.95 per unit. (Matthias sold 2,100 of the $0.77 units.) Adjustment data: 1. Accrued salaries payable $430. 2. Depreciation $210 per month.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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