50.1K
Verified Solution
Link Copied!
During December, the company completed the following transactions.
Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed).
Dec.12 Purchased merchandise on account from Klump Co. $12,000, terms 1/10, n/30.
Dec. 17 Sold merchandise on account $15,000, terms 2/10, n/30. The cost of the merchandise sold was $10,000.
Dec. 19 Paid salaries $2,500.
Dec. 22 Paid Klump Co. in full, less discount.
Dec. 26 Received collections in full, less discounts, from customers billed on December 17.
Adjustment data:
1. Depreciation $200 per month.
2. Insurance expired $400.
3. Income tax expense was $425. It was unpaid at December 31.
Journalize the transactions. Prepare BS, CF (direct) and IS.
Please write all answers in detail form.Write how we get and with the help of which rule we must right look like that.
On December 1, 2012, Bluemound Company had the following account balances. Debits Credits Cash $18,200 Accumulated Depreciation- Notes Receivable 2,200 Equipment $ 3,000 Accounts Receivable 7,500 Accounts Payable 6,100 Inventory 16,000 Common Stock 20,000 Prepaid Insurance 1,600 Retained Earnings 44,400 Equipment 28,000 $73,500 $73,500
Answer & Explanation
Solved by verified expert
