Retained earnings statement for december

Reference no: EM13818536

On December 1, 2012, Shiras Distributing Company had the following account balances.

During December, the company completed the following summary transactions.

Dec. 6 Paid $1,600 for salaries due employees, of which $600 is for December and $1,000 is for November salaries payable.

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 Gong 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 $8,000.

20 Paid salaries $1,800.

23 Paid Gong Co. in full, less discount.

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

Adjustment data:

1. Accrued salaries payable $800.

2. Depreciation $200 per month.

3. Supplies on hand $1,500.

4. Income tax due and unpaid at December 31 is $200.

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, Depreciation Expense, Salaries and Wages Expense, Sales Revenue, Sales Discounts, Supplies Expense, Income Tax Expense, and Income Taxes Payable.

(d) Prepare an adjusted trial balance.

(e) Prepare an income statement and a retained earnings statement for December and a classified balance sheet at December31.

Reference no: EM13818536

Questions Cloud

How much impact does the "maturity" level of the industry : How much of an impact does the "maturity" level of the industry or company have on strategy. How can you be innovative in a mature industry.

What particular market type it is focused on : For this part of your marketing plan, use what you learned in the module and the discussion to do some critical thinking- go past the surface and delve deeper into the problem. For the product or service that you are working with, investigate its we..

Determine the market segmentation and target customer : For this section of your marketing plan, you will determine the market segmentation and target customer for your product or service. Through this process, you will identify the differentiation which will provide market opportunities

Explain the restorative justice process : Explain the restorative justice process

Retained earnings statement for december : Prepare an adjusted trial balance. Prepare an income statement and a retained earnings statement for December and a classified balance sheet at December31.

Describe the strategic planning process of forecasting : Describe the strategic planning process of forecasting technical and information needs of an organization by linking resources to business needs and measuring performance against organizational goals.

How will education reduce risk taking behaviors : How will education reduce risk taking behaviors

What are cultural norms that govern the organization : Does the business' culture enable or block its business strategy and/or does it have an effect on financial performance in the value chain? Provide a rationale in support of your answer. What are cultural norms that govern the organization, and wha..

Describe the primary components of a strategic management : Describe the primary components of a strategic management process, and indicate why a strategic management process is needed for a company. Research at least one company and describe the strategic management process that the company uses.

User Account

All Pages