Reference no: EM131231188
On December 1, 2014, Westmoreland Company had the following account balances.
|
|
Debit
|
|
Credit
|
|
Cash
|
$18,200
|
Accumulated Depreciation Equipment
|
$3,000
|
|
Notes receivable
|
2,000
|
Accounts payable
|
6,100
|
|
Accounts receivable
|
7,200
|
Common stock
|
50,000
|
|
Inventory
|
16,000
|
Retained earnings
|
14,200
|
|
Prepaid insurance
|
1,600
|
|
|
|
Equipment
|
28,000
|
|
|
|
|
$73,300
|
|
$73,300
|
During December, the company completed the following transactions.
Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed).
12 Purchased merchandise on account from Alice Co. $12,000, terms 1/10, n/30.
17 Sold merchandise on account $16,000, terms 2/10, n/30. The cost of the merchandise sold was $10,000.
19 Paid salaries $2,200.
22 Paid Alice Co. in full, less discount.
26 Received collections in full, less discounts, from customers billed on December 17.
31 Received $2,700 cash from customers in payment of account (no discount allowed).
Adjustment data:
1. Depreciation $200 per month.
2. Insurance expired $400.
Instructions
(a) Journalize the December transactions. (Assume a perpetual inventory system.)
(b) Enter the December 1 balances in the ledger T-accounts and post the December transactions. Use Cost of Goods Sold, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Sales Revenue, and Sales Discounts.
(c) The statement from Dodge County Bank on December 31 showed a balance of $25,930.
A comparison of the bank statement with the Cash account revealed the following facts.
1. The bank collected a note receivable of $2,000 for Westmoreland Company on December 15.
2. The December 31 receipts were deposited in a night deposit vault on December 31.
These deposits were recorded by the bank in January.
3. Checks outstanding on December 31 totaled $1,210.
4. On December 31, the bank statement showed a NSF charge of $680 for a check received by the company from K. Quinn, a customer, on account.
Prepare a bank reconciliation as of December 31 based on the available information.
(d) Journalize the adjusting entries resulting from the bank reconciliation and adjustment data.
(e) Post the adjusting entries to the ledger T-accounts.
(f) Prepare an adjusted trial balance.
(g) Prepare an income statement for December and a classified balance sheet at December 31.
|
Post the closing entries and rule and balance the accounts
: Post the closing entries and rule and balance the accounts. Use T accounts. Income Summary is account No. 350. Prepare a post-closing trial balance.
|
|
What type of post acute care facility
: Many elderly patients are being discharged from acute care hospitals after undergoing procedures such as knee replacement surgery, and they need extensive rehabilitation services. From a strategic planning perspective, investment in what type of post..
|
|
Determine the auxiliary heating energy required
: the concrete storage mass needed for a maximum 10°C daily temperature swing.
|
|
Own goals to achieve work-life balance in your work life
: Think about your own goals to achieve work-life balance in your work life. How will these goals influence the type of career choices that you make? What about the type of company or industry that you will seek out for employment? What trade-offs are ..
|
|
Journalize the adjusting entries resulting from the bank
: Journalize the adjusting entries resulting from the bank reconciliation and adjustment data. Post the adjusting entries to the ledger T-accounts. Prepare an income statement for December and a classified balance sheet at December 31.
|
|
What advantages do employers gain with contract workers
: In recent years, there has been an increase in the number of companies that have wrongly classified an “employee” as a “contract worker” and, consequently, were taken to court by workers who believed they were entitled to certain rights and privilege..
|
|
Construct appropriate thermal circuits for attached sunspace
: Referring to the thermal circuit diagram of Figure 9.7 for the thermal storage (Trombe) wall building, construct appropriate thermal circuits for (a) attached sunspace, (b) thermal storage, and (c) direct gain buildings.
|
|
Entire set of human resource management activities
: A recent trend that more and more companies are embracing is to outsource all or most their human resource management activities. Do you agree or disagree with this trend? What risks is a company taking when it decides to outsource its entire set of ..
|
|
Identification of organizational components such as mission
: In part one of this discussion, you will consider means that organizations and their leaders use to adapt to the environment around them. Discuss how leaders use assumptions about and identification of organizational components such as mission, strat..
|