On December 1, Rodriguez Distributing Company had the following accounts Balance

Cash $ 7,200 -
Accounts Receivable $ 4,600 -
Inventory $ 12,000 -
Supplies $ 1,200 -
Equipment $ 22,000 -
Accumulated Depreciation-Equipment - $ 2,200
Accounts Payable - $ 4,500
Salaries & Wages Payable - $ 1,000
Owner's Capital - $ 39,300
$ 47,000 $ 47,000

During the December, the company completed the following summary

transactions.

Dec. 06 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. 08 Received $2,200 cash from customers in payment of account
(no discount allowed).
Dec. 10 Sold merchandise for cash $6,300. The cost of the merchandise sold
was $4,100.
Dec. 13 Purchased merchandise on account from Boehm Co. $9,000, terms 2/10, n/30.
Dec. 15 Purchased supplies for cash $2,000.
Dec. 18 Sold merchandise on account $15,000, terms 3/10, n/30. The cost of the
merchandise sold was $10,000.
Dec. 20 Paid salaries and wages $1,800.
Dec. 23 Paid Boehm Co. in full, less discount.
Dec. 27 Received collections in full, less discounts, from customers billed
on December 18.

Adjustment data consist of:

Adjustment data consist of:
1) Accrued salaries and wages payable $840.
2) Depreciation $200 per month.
3) Supplies on hand $1,500.

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, and Supplies
c) Journalize and post adjusting entries.
d) Prepare an adjusted trial balance. Total= $ 68,340
e) Prepare an income statement and an owner’s equity statement for December
and a classifi ed balance sheet at December 31.

Net Income= $ 1,610

 Rodriguez Distrubuting Company
Journal Entries

Date Particulars Dr. Cr.

Dec. 06 Salaries & Wages Payble $ 1,000
Salaries & Wages Expense $ 600
Cash $ 1,600

Dec. 08 Cash $ 2,200

Accounts Receivable $ 2,200

Dec. 10 Cost of Goods Sold $ 4,100

Inventory $ 4,100
Cash $ 6,300
Sales Revenue $ 6,300

Dec. 13 Inventory $ 9,000

Accounts Payable $ 9,000

Dec. 15 Supplies $ 2,000

Cash $ 2,000

Dec. 18 Cost of Goods Sold $ 10,000

Inventory $ 10,000
Accounts Receivable $ 15,000
Sales Revenue $ 15,000

Dec. 20 Salaries & Wages Expense $ 1,800

Cash $ 1,800

Dec. 23 Accounts Payable $ 9,000

Inventory $ 180
Cash $ 8,820

Dec. 27 Cash $ 14,550

Sales Discount $ 450
Accounts Receivable $ 15,000

$ 76,000 $ 76,000
Adjusting Entries:
Date Particulars Dr. Cr.
1) Salary & Wages Expense $ 840
Salary & Wages Payable $ 840

2) Depreciation Expense-Equipment $ 200

Accumulated Depreciation-Equipment $ 200

3) Supplies Expense $ 1,700

Supplies $ 1,700
Cash
Date Explanation Ref. Dr. Cr. Balance
Opening Balance $ 7,200
Dec. 06 Salaries & Wages Payable and Expense $ 1,600 $ 5,600
Dec. 10 Accounts Receivable $ 2,200 $ 7,800
Dec. 10 Sales Revenue $ 6,300 $ 14,100
Dec. 15 Supplies $ 2,000 $ 12,100
Dec. 20 Salaries & Wages Expense $ 1,800 $ 10,300
Dec. 23 Accounts Payable $ 8,820 $ 1,480
Dec. 27 Accounts Receivable $ 14,550 $ 16,030

Accounts Receivable
Date Explanation Ref. Dr. Cr. Balance
Opening Balance $ 4,600
Dec. 08 Cash $ 2,200 $ 2,400
Dec. 18 Sales Revenue $ 15,000 $ 17,400
Dec. 27 Cash & Sales Discount $ 15,000 $ 2,400

Inventory
Date Explanation Ref. Dr. Cr. Balance
Opening Balance $ 12,000
Dec. 10 Cost of Goods Sold $ 4,100 $ 7,900
Dec. 13 Accounts Payable 9,000.00 $ 16,900
Dec. 18 Cost of Goods Sold $ 10,000 $ 6,900
Dec. 23 Accounts Payable $ 180 $ 6,720

Supplies
Date Explanation Ref. Dr. Cr. Balance
Opening Balance $ 1,200
Dec. 15 Cash $ 2,000 $ 3,200
Dec. 31 Supplies Expense (Adj. Entries) $ 1,700 $ 1,500

Equipment
Date Explanation Ref. Dr. Cr. Balance
Opening Balance $ 22,000

Accumulated Depreciation-Equipment
Date Explanation Ref. Dr. Cr. Balance
Opening Balance $ 2,200
Dec. 31 Depreciation Expense-Equipment $ 200 $ 2,400

Accounts Payable
Date Explanation Ref. Dr. Cr. Balance
Opening Balance $ 4,500
Dec. 13 Inventory $ 9,000 $ 13,500
Dec. 23 Inventory & Cash $ 9,000 $ 4,500
Salary & Wages Payable
Date Explanation Ref. Dr. Cr. Balance
Opening Balance $ 1,000
Dec. 06 Cash $ 1,000 $ -
Dec. 31 Salaries & Wages Expense (Adj. Entries) $ 840 $ 840

Owner's Capital
Date Explanation Ref. Dr. Cr. Balance
Opening Balance $ 39,300

Cost of Goods Sold

Date Explanation Ref. Dr. Cr. Balance
Dec. 10 Inventory 4,100 $ 4,100
Dec. 18 Inventory $ 10,000 $ 14,100

Depreciation Expense
Date Explanation Ref. Dr. Cr. Balance
Dec. 31 Accumulated Depreciation-Equipment $ 200 $ 200

Salaries and Wages Expense

Date Explanation Ref. Dr. Cr. Balance
Dec. 06 Cash $ 600 $ 600
Dec. 20 Cash $ 1,800 $ 2,400
Dec. 31 Salaries & Wages payable (Adj. Entries) $ 840 $ 3,240

Sales Revenue
Date Explanation Ref. Dr. Cr. Balance
Dec. 10 Cash $ 6,300 $ 6,300
Dec. 18 Accounts Receivable $ 15,000 $ 21,300

Sales Discount
Date Explanation Ref. Dr. Cr. Balance
Dec. 27 Accounts Receivable $ 450 $ 450

Supplies Expense
Date Explanation Ref. Dr. Cr. Balance
Dec. 31 Supplies (Adj. Entries) $ 1,700 $ 1,700
 Rodriguez Distributing Company
Trial Balance

As on 31 December Adjusted Trial Balance

Particulars
DR. Cr. DR. Cr.
Cash $ 16,030 - $ 16,030 -
Accounts Receivable $ 2,400 - $ 2,400 -
Inventory $ 6,720 - $ 6,720 -
Supplies $ 3,200 - $ 1,500 -
Equipment $ 22,000 - $ 22,000 -
Accumulated Depreciation-Equipment - $ 2,200 - $ 2,400
Accounts Payable - $ 4,500 - $ 4,500
Salaries & Wages Payable - $ - - $ 840
Owner's Capital - $ 39,300 - $ 39,300
Cost of Goods Sold $ 14,100 - $ 14,100 $ -
Depreciation Expense - - $ 200 -
Salaries & Wages Expense $ 2,400 - $ 3,240 -
Sales Revenue - $ 21,300 $ 21,300
Sales Discount $ 450 - $ 450 -
Supplies Expense - - $ 1,700 -
Total= $ 67,300 $ 67,300 $ 68,340 $ 68,340
 Rodriguez Distributing Company
Income Statement
For the month of December.

Particulars Amount
a) Total Revenue: $ 21,300
Sales Revenue $ 21,300

b) Total Expense: $ 19,690

Cost of Goods Sold $ 14,100
Salaries & Wages Expense $ 3,240
Supplies Expense $ 1,700
Sales Discount $ 450
Depreciation Expense-Equip. $ 200

Net Profit during the period (a-b) $ 1,610

 Rodriguez Distributing Company
Statement of Owner's Equity
As on 31 December

Particulars Amount
Opening Balance of Owner's Capital $ 39,300
Add: Net Profit During the Period $ 1,610
$ -
Owner's Capital as on 30th November $ 40,910
 Rodriguez Distributing Company
Statement of Financial Position
As on 31 December

Particulars Amount
Asset: $ 46,250
Cash $ 16,030
Accounts Receivable $ 2,400
Inventory $ 6,720
Equipment- $ 22,000 $ 19,600
Less:Accum. Dep . $ 2,400
Supplies $ 1,500

Liabilities and Owner's Equity: $ 46,250

Owner's Capital $ 40,910
Accounts Payable $ 4,500
Salaries & Wages Payable $ 840