College Coasters is a San Diego–based merchandiser specializingin logo-adorned drink coasters. The company reported the followingbalances in its unadjusted trial balance at December 1.
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| Cash | $ | 10,005 |
| Accounts Receivable | | 2,000 |
| Inventory | | 500 |
| Prepaid Rent | | 600 |
| Equipment | | 810 |
| Accumulated Depreciation | | 110 |
| Accounts Payable | | 1,500 |
| Salaries and Wages Payable | | 300 |
| Income Taxes Payable | | 0 |
| Common Stock | | 6,500 |
| Retained Earnings | | 3,030 |
| Sales Revenue | | 15,985 |
| Cost of Goods Sold | | 8,900 |
| Rent Expense | | 1,100 |
| Salaries and Wages Expense | | 2,000 |
| Depreciation Expense | | 110 |
| Income Tax Expense | | 0 |
| Office Expenses | | 1,400 |
|
The company buys coasters from one supplier. All amounts inAccounts Payable on December 1 are owed to that supplier. Theinventory on December 1 consisted of 1,000 coasters, all of whichwere purchased in a batch on July 10 at a unit cost of $0.50.College Coasters records its inventory using perpetual inventoryaccounts and the FIFO cost flow method.
During December, the company entered into the followingtransactions. Some of these transactions are explained in greaterdetail below.
- Purchased 500 coasters on account from the regular supplier on12/1 at a unit cost of $0.52, with terms of n/60.
- Purchased 1,000 coasters on account from the regular supplieron 12/2 at a unit cost of $0.55, with terms of n/60.
- Sold 2,000 coasters on account on 12/3 at a unit price of$0.90.
- Collected $1,000 from customers on account on 12/4.
- Paid the supplier $1,600 cash on account on 12/18.
- Paid employees $500 on 12/23, of which $300 related to workdone in November and $200 was for wages up to December 22.
- Loaded 100 coasters on a cargo ship on 12/31 to be deliveredthe following week to a customer in Kona, Hawaii. The sale was madeFOB destination with terms of n/60.
Other relevant information includes the following at 12/31:
- College Coasters has not yet recorded $200 of office expensesincurred in December on account.
- The company estimates that the equipment depreciates at a rateof $10 per month. One month of depreciation needs to berecorded.
- Wages for the period from December 23–31 are $100 and will bepaid on January 15.
- The $600 of Prepaid Rent relates to a six-month period endingon May 31 of next year.
- The company incurred $789 of income tax but has made no taxpayments this year.
- No shrinkage or damage was discovered when the inventory wascounted on December 31.
- The company did not declare dividends and there were notransactions involving common stock.
What are the journal entries for a-n?
