CH2 ezto.mheducation.com/hm.tpx Question 13 13. 10 00 points Selected statement
ID: 2342831 • Letter: C
Question
CH2 ezto.mheducation.com/hm.tpx Question 13 13. 10 00 points Selected statement of financial position information for the Wolf Company at November 30, and December 31, 2013, is presented below. The company uses the perpetual inventory system and all sales to customers are made on credit Dec Dr Dr 3,000 7,500 6,000 10,000 Accounts receivable Prepaid insurance 5,000 7,000 Accounts payable Wages payable 12,000 5,000 15,000 3,000 The following cash flow information also is available a. Cash collected from credit customers, $80,000 b. Cash paid for insurance, $5,000 c. Cash paid to suppliers of inventory, $60,000 (the entire accounts payable amounts relate to inventory chases). d. Cash paid to employees for wages, $10,000 Required: 1. Detormine the following for the month of December a Sales revenue b Cost of goods sold c Insurance expense d Wage eoxpense 73000 S 58000 2500 8000 2. Prepare a summary journal entry to record the months sales and cost of those sales General Journal Debit Click to select Credit Click to select) (Click to select) Click to select) References WorksheetExplanation / Answer
a Sales revenue 73000 =80000-10000+3000 b Cost of goods sold 64000 =60000+(15000-12000)+(7000-6000) Cash paid+Change in Accounts payable+Change in inventory c Insurance expense 2500 =5000+5000-7500 d Wage expense 8000 =10000-5000+3000 2 Accounts receivable 73000 Sales revenue 73000 Cost of goods sold 64000 Inventory 64000