Please help! It would be greatly appreciated! On December 1, 2017, Wildhorse Co.
ID: 2400721 • Letter: P
Question
Please help! It would be greatly appreciated!
On December 1, 2017, Wildhorse Co. had the account balances shown below Debits Cash Accounts Receivable Inventory (3,100 x $0.60 Equipment Credits $4,580 Accumulated Depreciation-Equipment $1,490 3,240 10,900 17,630 $33,260 4,020 Accounts Payable 1,860 Common Stock 22,800 Retained Earnings $33,260 The following transactions occurred during December. Dec. 3 Purchased 4,100 units of inventory on account at a cost of $0.67 per unit. 5 Sold 4,500 units of inventory on account for $0.90 per unit. (It sold 3,100 of the $0.60 units and 1,400 of the $0.67.) 7 Granted the December 5 customer $270 credit for 300 units of inventory returned costing $240. These units were returned to inventory 17 Purchased 2,500 units of inventory for cash at $0.70 each 22 Sold 2,400 units of inventory on account for $0.86 per unit. (It sold 2,400 of the $0.67 units.) Adjustment data: 1. Accrued salaries and wages payable $390. 2. Depreciation on equipment $190 per month 3. Income tax expense was $230, to be paid next year.Explanation / Answer
Inventory at end :
Beginning inventory :sold
dec 3 purchase: 4100-1400-2400 sale = 300 units * .67 = 201 +240 return = 441
dec 17 purchase = 2500*.7= 1750
Total inventory at end = 441+1750=2191
2)
sales = [4500*.90]+[2400*.86 ] = 6114
Accounts receivable = 4020beginning+6114sales-270 return = 9864
Accounts payable = 3240+ [4100*.67]=5987
cost of goods sold = [3100*.60]+[1400*.67]+[2400*.67]-240 = 4166
3)cash = 4580- [2500*.7] purchase for cash= 2830
Adjusted trial balance
December 31,2017
Adjusted trial balance
December 31,2017
cash 2830 Accounts receivable 9864 Inventory 2191 Equipment 22800 Accumulated depreciation -equipment [1490+190] 1680 Accounts payable 5987 salaries and wage payable 390 Income tax payable 230 common stock 10900 Retained earning 17630 sales revenue 6114 sales return and allowance 270 cost of goods sold 4166 salaries and wage expense 390 Depreciation expense 190 Income tax expense 230 Total 42931 42931