90.2K

Verified Solution

Link Copied!

hi can you answer this questions please

thank you in advance.

On December 1, 2020, Sigma Distributing had the following account balances. During December, the company completed the following summary transactions. Dec. 6 Paid 1,600 for salaries and wages due employees, of which 600 is for December and 1,000 is for November salaries and wages payable. Dec. 8 Received 2,100 cash from customers in payment of account (no discount allowed). Dec. 10 Sold merchandise for cash 6,600. The cost of the merchandise sold was 4,100. Dec. 13 Purchased merchandise on account from Gong Co, 9,000, terms 2/10,n/30. Dec. 15 Purchased supplies for cash 2,000. Dee. 18 Sold merchandise on account 12,000, terms 3/10,n/30. The cost of the merchandise sold was 8,400. Dec. 20 Paid salaries and wages 1,800. Dec. 23 Paid Gong Co. in full, less discount. Dec. 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 1,700. Instructions a. Journalize the December transactions using a perpetual inventory system (18 points). b. Enter the December 1 balances in the ledger T-accounts and post the December transactions. Use Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Sales Revenue, Sales Discounts, and Supplies Expense (16 points). c. Journalize and post adjusting entries (6 points). d. Prepare an adjusted trial balance (17 points). e. Prepare an income statement and a retained earnings statement for December and a classified statement of financial position at December 31 (24 points). Lina Co. uses a periodic inventory system. Its records show the following for the month of April, in which 68 units are sold. Instructions: Compute the ending inventory at April 30 and cost of goods sold using FIFO and average-cost methods

Answer & Explanation Solved by verified expert

See Answer