On December 1, 2014, Prosen Distributing Company had the following account balances.

Cash Debit AccumulatCredit

$ 7,200
Accounts R 4,600 Equipment$ 2,200
Inventory 12,000 Accounts P 4,500
Supplies 1,200 Salaries a 1,000
Equipment 22,000 Owner"s Ca 39,300
$47,000 $47,000
During December, the company completed the following summary transactions.
6 Paid $1,600 for salaries and wages due employees, of which $600 is for December and $1,000 is for N
8 Received $1,900 cash from customers in payment of account (no discount allowed).
10 Sold merchandise for cash $6,300. The cost of the merchandise sold was $4,100.
13 Purchased merchandise on account from Maglio Co. $9,000, terms 2/10, n/30.
15 Purchased supplies for cash $2,000.
18 Sold merchandise on account $12,000, terms 3/10, n/30. The cost of the merchandise sold was $8,00
20 Paid salaries and wages $1,800.
23 Paid Maglio Co. in full, less discount.
27 Received collections in full, less discounts, from customers billed on December 18.
Adjustment data:
1. Accrued salaries and wages payable $800.
2. Depreciation $200 per month.
3. Supplies on hand $1,500.
Instructions
(a) Journalize the December transactions using 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,
(c) Journalize and post adjusting entries.
(d) Prepare an adjusted trial balance.
(e) Prepare an income statement and an owner"s equity statement for December and a classified balance sheet at Decem
December and $1,000 is for November salaries and wages payable.
nt allowed).

merchandise sold was $8,000.

ons. Use Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Sales Revenue, Sales Discounts, and Supplies Expen

ified balance sheet at December 31.

Discounts, and Supplies Expense.
 Answer B
Date Accounts Title Debit Credit
Nov-08 Salaries payable $ 650
Salaries expense $ 550
Cash $ 1,200

Nov-10 Cash $ 1,700

Accounts Receivable $ 1,700

Nov-11 Merchandise Inventory $ 5,000

Accounts Payable $ 5,000

Nov-12 Accounts Receivable $ 5,500

Sales Revenue $ 5,500

Nov-12 Cost of Goods Sold $ 3,200

Merchandise Inventory $ 3,200

Nov-15 Accounts Payable $ 200

Merchandise Inventory $ 200

Nov-19 Cash $ 5,390 ($ 5,500 less $ 110)

Sales discounts $ 110 (2 % of $ 5,500)
Accounts Receivable $ 5,500

Nov-20 Accounts Payable $ 4,800

Cash $ 4,704 ($ 4,800 less $ 96)
Merchandise Inventory $ 96 (2 % of $ 4,800)

Nov-22 Cash $ 7,400

Service Revenue $ 7,400

Nov-25 Equipment $ 3,600

Accounts Payable $ 3,600

Nov-27 Supplies $ 1,250

Accounts Payable $ 1,250

Nov-28 Accounts Payable $ 2,700

Cash $ 2,700

Nov-29 Rent expense $ 750

Cash $ 750

Nov-29 Salaries expense $ 1,150

 Cash $ 1,150

Nov-29 Accounts Receivable $ 1,900

Service Revenue $ 1,900

Nov-29 Cash $ 600

Unearned Service Revenue $ 600

Adjusting entries
S.No Accounts Title Debit Credit
1 Supplies expense $ 550
Supplies $ 550
($ 1,100 add $ 1,250 less $ 1,800)

2 Salaries expense $ 600

Salaries payable $ 600

3 Depreciation expense $ 900

Accumulated Depreciation $ 900

4 Unearned Service Revenue $ 650

Service Revenue $ 650
($ 450 add $ 600 less $ 400)
Answer A & C
Cash Salaries expense
Balance 6700 Nov-08 1200 Nov-08 550
Nov-10 1700 Nov-20 4704 Nov-29 1150
Nov-19 5390 Nov-28 2700 Salaries p 600
Nov-22 7400 Nov-29 750 2300
Nov-29 600 Nov-29 1150
Balance 11286 Merchandise Inventory
21790 21790 Nov-11 5000 Nov-12 3200
Nov-15 200
Accounts Receivable Nov-20 96
Balance 2450 Nov-10 1700 Balance 1504
Nov-12 5500 Nov-19 5500 5000 5000
Nov-29 1900 Balance 2650
Sales Revenue
9850 9850 Nov-12 5500
Supplies
Balance 1100 Supplies e 550 Cost of Goods Sold
Nov-27 1250 Balance 1800 Nov-12 3200
2350 2350

Sales discounts
Equipment Nov-19 110
Balance 34000 Balance 37600
Nov-25 3600
37600 37600 Service Revenue
Nov-22 7400
Salaries payable Nov-29 1900
Nov-08 650 Balance 650 Unearned 650
Salaries p 600 Rent expense
Nov-29 750

Accumulated depreciation
Balance 800
Depreciat 900

Accounts payable
Nov-15 200 Balance 6200
Nov-20 4800 Nov-11 5000
Nov-28 2700 Nov-25 3600
Balance 8350 Nov-27 1250 Supplies expense
Supplies 550
 16050 16050

Unearned service revenue Depreciation expense

Service R 650 Balance 450 Accumulat 900
Balance 400 Nov-29 600
1050 1050

Common Stock
Balance 20000 Balance 20000

Retained Earnings
Balance 16150 Balance 16150
Answer D & E
Unadjusted Trial Balance Adjustments Adjusted Trial Balance
Accounts Title Debit Credit Debit Credit Debit Credit Debit
Cash 11286
Accounts Receivable 2650
Supplies 2350 550
Equipment 37600
Salaries payable 0 600
Accumulated depreciation 800 900
Accounts payable 8350
Unearned service revenue 1050 650
Common Stock 20000
Retained Earnings 16150
Merchandise Inventory 1504
Sales Revenue 5500
Cost of Goods Sold 3200
Sales discounts 110
Service Revenue 9300 650
Rent expense 750
Depreciation expense 900
Supplies expense 550
Salaries expense 1700 600

61150 61150 2700 2700 0 0 0

0 0 0
Credit Debit Credit

0 0 0
0 0