The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2023. Account Title Debits Credits Cash $ 5,700 Accounts receivable 2,700 Inventory 5,700 Equipment 11,700 Accumulated depreciation $ 4,200 Accounts payable 3,700 Accrued liabilities 0 Common stock 9,000 Retained earnings 8,900 Sales revenue 0 Cost of goods sold 0 Salaries expense 0 Rent expense 0 Advertising expense 0 Dividends 0 Totals $ 25,800 $ 25,800 The following transactions occurred during January 2024: January 1 Sold inventory for cash, $4,200. The cost of the inventory was $2,700. The company uses the perpetual inventory system. January 2 Purchased equipment on account for $6,200 from the Strong Company. The full amount is due in 15 days. January 4 Received a $200 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2. January 8 Sold inventory on account for $5,700. The cost of the inventory was $3,500. January 10 Purchased inventory on account for $9,850. January 13 Purchased equipment for cash, $900. January 16 Paid the entire amount due to the Strong Company. January 18 Received $5,400 from customers on account. January 20 Paid $900 to the owner of the building for January’s rent. January 30 Paid employees $3,700 for salaries for the month of January. January 31 Paid a cash dividend of $900 to shareholders. Required: 2. Prepare general journal entries to record each transaction.
The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2023. Account Title Debits Credits Cash $ 5,700 Accounts receivable 2,700 Inventory 5,700 Equipment 11,700 Accumulated depreciation $ 4,200 Accounts payable 3,700 Accrued liabilities 0 Common stock 9,000 Retained earnings 8,900 Sales revenue 0 Cost of goods sold 0 Salaries expense 0 Rent expense 0 Advertising expense 0 Dividends 0 Totals $ 25,800 $ 25,800 The following transactions occurred during January 2024: January 1 Sold inventory for cash, $4,200. The cost of the inventory was $2,700. The company uses the perpetual inventory system. January 2 Purchased equipment on account for $6,200 from the Strong Company. The full amount is due in 15 days. January 4 Received a $200 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2. January 8 Sold inventory on account for $5,700. The cost of the inventory was $3,500. January 10 Purchased inventory on account for $9,850. January 13 Purchased equipment for cash, $900. January 16 Paid the entire amount due to the Strong Company. January 18 Received $5,400 from customers on account. January 20 Paid $900 to the owner of the building for January’s rent. January 30 Paid employees $3,700 for salaries for the month of January. January 31 Paid a cash dividend of $900 to shareholders. Required: 2. Prepare general journal entries to record each transaction.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...
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The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2023.
| Account Title | Debits | Credits |
|---|---|---|
| Cash | $ 5,700 | |
| Accounts receivable | 2,700 | |
| Inventory | 5,700 | |
| Equipment | 11,700 | |
| Accumulated depreciation | $ 4,200 | |
| Accounts payable | 3,700 | |
| Accrued liabilities | 0 | |
| Common stock | 9,000 | |
| Retained earnings | 8,900 | |
| Sales revenue | 0 | |
| Cost of goods sold | 0 | |
| Salaries expense | 0 | |
| Rent expense | 0 | |
| Advertising expense | 0 | |
| Dividends | 0 | |
| Totals | $ 25,800 | $ 25,800 |
The following transactions occurred during January 2024:
| January 1 | Sold inventory for cash, $4,200. The cost of the inventory was $2,700. The company uses the perpetual inventory system. |
|---|---|
| January 2 | Purchased equipment on account for $6,200 from the Strong Company. The full amount is due in 15 days. |
| January 4 | Received a $200 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2. |
| January 8 | Sold inventory on account for $5,700. The cost of the inventory was $3,500. |
| January 10 | Purchased inventory on account for $9,850. |
| January 13 | Purchased equipment for cash, $900. |
| January 16 | Paid the entire amount due to the Strong Company. |
| January 18 | Received $5,400 from customers on account. |
| January 20 | Paid $900 to the owner of the building for January’s rent. |
| January 30 | Paid employees $3,700 for salaries for the month of January. |
| January 31 | Paid a cash dividend of $900 to shareholders. |
Required:
2. Prepare general journal entries to record each transaction.
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