Reference no: EM132832551

During December, the company completed the following summary transactions.

Dec. 6 Paid BD3,200 for salaries and wages due to employees, of which BD1,200 is for December and BD2,000 are for November salaries and wages payable.

8 Received BD3,800 cash from customers in payment of account (no discount allowed).

10 Sold merchandise for cash BD12,600. The cost of the merchandise sold was BD8,200.

13 Purchased merchandise on account from Asian Co. BD18,000, terms 2/10, n/30.

15 Purchased supplies for cash BD4,000.

18 Sold merchandise on account BD24,000, terms 3/10, n/30. The cost of the merchandise sold was BD16,000.

20 Paid salaries and wages BD3,600.

23 Paid Asian Co. in full, less discount.

27 Received collections in full, fewer discounts, from customers billed on December 18.

Adjustment data:

1. Accrued salaries and wages payable BD1,600.

2. Depreciation BD400 per month.

3. Supplies on hand BD3,000.

Required

Problem (a) Journalize the December transactions using a perpetual inventory system and Journalize and post adjusting entries.

Problem (b) Prepare an income statement for December and a classified balance sheet at December 31.