The following account balances are shown on November 30, 1999, for the Clever Bookstore:
|
Cash |
$ 8,000 |
Accounts payable |
$ 4,000 |
|
Accounts receivable |
9,000 |
Salaries payable |
2,000 |
|
Inventory |
60,000 |
Notes payable |
35,000 |
|
Supplies |
3,000 |
J. Clever, capital |
39,000 |
|
Total |
$80,000 |
Total |
$80,000 |
The following transactions occurred during December.
1. Paid workers the $2,000 owed them on November 30.
2. Made sales totaling $40,000. One-half of the sales were for cash. The other half were on account. The cost of goods sold was $25,000.
3. Purchased inventory on account, $15,000.
4. Collected in cash $22,000 of receivables.
5. Used supplies totaling $800.
6. Paid accounts payable of $12,000.
7. Paid December’s interest on the note payable in the amount of $300.
Required
a. Prepare the journal entries to record these transactions.
b. Prepare any necessary adjusting entries.
c. Post all journal entries to T-accounts.
d. Prepare a trial balance.
e. Prepare a balance sheet for Clever Bookstore as of December 31, 1999.