Record the following transactions for the year 20×1, using T-accounts (open any accounts you may

Record the following transactions for the year 20×1, using T-accounts (open any accounts you may need). The Burnside Company uses the periodic inventory procedure.

a. Sales of $150,000 were made, of which $90,000 were made on account.

b. Collections during the period from customers were $95,000.

c. Merchandise purchased on account during the period was $80,000.

d. The merchandise inventory on December 31, 20×1, was $45,000.

e. Payments to trade creditors for merchandise and supplies purchased were $85,000.

f. Supplies purchased on account during the period were $5,500.

g. On December 15, 20×1, the rent for 20×2 was paid, $5,000. The rent for the year 20×1 was $4,000.

h. As of December 31, 20×1, the company owed its employees wages totaling $5,000. During the year, employees were paid $70,000.

i. Supplies on hand as of December 31, 20×1, were $900.

The account balances before the transactions were as follows:

 

 

December 31, 20×0

 

Debits

Credits

Cash

$ 90,000

Accounts Receivable

59,500

Merchandise

60,000

Supplies

1,500

Rent (Prepaid)

4,000

Wages Expense

Cost of Goods Sold

Supplies Expense

Rent Expense

Accounts Payable

$ 16,000

Wages Payable

24,000

Sales

Common Stock

100,000

Retained Earnings

75,000

$215,000

$215,000    

 

 

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