Question

T-Mobile 11:08 AM 90% aCCOUNTING URGTdocx The following information is given at the beginning of December Debit Credit Cash $68,500 Accounts receivables $23,000 $8,000 Allowance for uncollectible accounts ventory (1,200 units at $7.50) $9,000 Accounts payable $26,000 Common stock $45,000 Retained eaming $21,500 Total $100,500 $100,500 Enter the beginning balance for each account in the Taccounts (General Ledger) tab in the e Required: 1 template fie “Accounting Cycle Project 2 Excel Template.xlsx* Prepare journal entries to record the December transactions n the General Journal Tab in the template file “Account ng Cycle Project 2 Excel Template.xlsx Use the following accounts as appropriate: Cash, Accounts receivable, Allowance for uncollectible accounts, Inventory. Not Required: 2 receivables, Interest receivables, Equipment ulated depreciation, Accounts payable, C stock, Retained earnings, Sales revenue nterest revenue, Cost of goods sold, Depreciation expense, Bad debt expense ncome tax expense Used cash to purchase equipment at a purchase price of $9.800, plus tax $300, plus shippin Dec. 1. $700 interest rate of 1 Lend $10,000 to an e mployee by receiving a note for six months at annua Dec. 1. at the maturity date. Purchase 4.000 units of inventory on account at $11 per unit for a total cost of $44,000. Dec. 6. Assuming the perpetual method is used, the company sold 3,200 units at $22 each on acco terms 2/10, nl30. Calculate the cost of goods sold using the FIFO method and record the app Dec 12 journal entries for the sale and the cost of the sale Hint: Make sure to consider the beginn ventory balance from the beginning trial balance Dec 20 Paid $20,000 to suppliers for purchases made on account n the prior month. Dec 23 Received cash of $17,000 for sales of inventory made on account on December 12. Dec 28 Write-off $3,000 of accounts receivables using the allowance method. Paid $4,800 for income tax for the month of December. Dec 30 Post all of the December transactions from the “General Journal” tab to the Taccounts under Required: 3 Accounts (General Ledger tab in the excel template file Accounting Cycle project 2 Excel Template.xlsx”. Make sure to include beginning balances for accounts where necessary Compute the balances for each Taccount after all of the entries have been posted. These an Required: 4. unadjusted balance as of December 31 Prepare the unadjusted trial balance under the “Unadjusted Trial Balance tab in the excel Required: 5 file Cycle project 2 Excel Template xlsx” Provide the total of the debit column from the Unadjusted trial balance Required: 6. Record the following four transactions as adjusting entries under the “General Journal” tab The company estimates 20% of the ending balance of accounts receivables is not going to be Dec 31 consider the balance in the allowance for uncollectibe account collected. (Hint: Remember to any Dec 31. Record December’s adjustment to accrue interest for the notes receivables. The company uses the lower of cost or net realizable value method for inventory valuation. Th Dec 31. realizable value of the inventory is $9 per unit. Make the adjusting entry if necessary.



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