On December 1, 2022, Pharoah Distributing Company had the following account balances. ...
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Accounting
On December 1, 2022, Pharoah Distributing Company had the following account balances.
Debit | Credit | |||||
---|---|---|---|---|---|---|
Cash | $6,700 | Accumulated DepreciationEquipment | $2,200 | |||
Accounts Receivable | 4,100 | Accounts Payable | 4,000 | |||
Inventory | 11,500 | Salaries and Wages Payable | 1,000 | |||
Supplies | 1,200 | Common Stock | 15,000 | |||
Equipment | 22,000 | Retained Earnings | 23,300 | |||
$45,500 | $45,500 |
During December, the company completed the following summary transactions.
Dec. 6 | Paid $1,600 for salaries due employees, of which $600 is for December and $1,000 is for November salaries payable. | |
8 | Received $1,900 cash from customers in payment of account (no discount allowed). | |
10 | Sold merchandise for cash $5,800. The cost of the merchandise sold was $3,900. | |
13 | Purchased merchandise on account from Hecht Co. $7,000, terms 2/10, n/30. | |
15 | Purchased supplies for cash $2,000. | |
18 | Sold merchandise on account $10,500, terms 3/10, n/30. The cost of the merchandise sold was $6,900. | |
20 | Paid salaries $1,500. | |
23 | Paid Hecht Co. in full, less discount. | |
27 | Received collections in full, less discounts, from customers billed on December 18. |
a.) Journalize the December transactions using a perpetual inventory system.
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