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The general ledger of the Whitlow Manufacturing Corporation at January 1, 2021, contained the following account balances: Credits Debits 10,000 15,000 11,000 20,000 Account Title Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Accounts Payable Salaries Payable Common Stock Retained Earnings 6,000 3,000 9,000 28,500 9,500 The following is a summary of the transactions for the year: a. Sold merchandise for cash, $8,500. The cost of the merchandise was $4,800. The company uses the perpetual inventory system. b. Purchased equipment on account for $5,500 from the Strong company. c. Received a $150 bill from the local newspaper for an advertisement that appeared in the paper during January d. Purchased merchandise on account for $9,500 e. Purchased supplies of $600 in cash. f. Collected on accounts receivable, $10,000 & Issued shares of common stock in exchange for $10,000 in cash. h. Paid salaries, $12,500 1. Paid miscellaneous expenses, $2,000. j. Paid $5,000 of the bill to Strong Company. k Paid $1,400 in cash dividends to shareholders. Information necessary to prepare the year-end adjusting entries: 1. Depreciation on the equipment for the year is $500. m. Employee salaries are paid once a month, on the 3rd of the following month. Salaries earned during December were $400. n. On October 1, 2021, Whitlow borrowed $10,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 4 years. 0. On March 1, 2021, the company paid an insurance company $6,000 for a two-year fire insurance policy. P. $200 of supplies remained on hand at December 31, 2021. 4. On December 1, 2021, $1,000 rent was paid to the owner of the building. The payment represented rent for December and January 2022, at $500 per month. The general ledger of the Whitlow Manufacturing Corporation at January 1, 2021, contained the following account balances: Credits Debits 10,000 15,000 11,000 20,000 Account Title Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Accounts Payable Salaries Payable Common Stock Retained Earnings 6,000 3,000 9,000 28,500 9,500 The following is a summary of the transactions for the year: a. Sold merchandise for cash, $8,500. The cost of the merchandise was $4,800. The company uses the perpetual inventory system. b. Purchased equipment on account for $5,500 from the Strong company. c. Received a $150 bill from the local newspaper for an advertisement that appeared in the paper during January d. Purchased merchandise on account for $9,500 e. Purchased supplies of $600 in cash. f. Collected on accounts receivable, $10,000 & Issued shares of common stock in exchange for $10,000 in cash. h. Paid salaries, $12,500 1. Paid miscellaneous expenses, $2,000. j. Paid $5,000 of the bill to Strong Company. k Paid $1,400 in cash dividends to shareholders. Information necessary to prepare the year-end adjusting entries: 1. Depreciation on the equipment for the year is $500. m. Employee salaries are paid once a month, on the 3rd of the following month. Salaries earned during December were $400. n. On October 1, 2021, Whitlow borrowed $10,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 4 years. 0. On March 1, 2021, the company paid an insurance company $6,000 for a two-year fire insurance policy. P. $200 of supplies remained on hand at December 31, 2021. 4. On December 1, 2021, $1,000 rent was paid to the owner of the building. The payment represented rent for December and January 2022, at $500 per month

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