On December 1, 2022, Matthias Company had the following account balances. Cash Accounts Receivable Inventory Equipment *(2,900 x $0.60) Dec. 3 5 7 The following transactions occurred during December. 17 Debit Date $4,300 3,700 1,740 Dec. 31 20,300 $30,040 (1) Accumulated Depreciation-Equipment Accounts Payable Common Stock Retained Earnings (2) Granted the December 5 customer $270 credit for 300 units of inventory returned costing $216. These units were returned to inventory. Purchased 2,500 units of inventory for cash at $0.80 each. 22 Sold 2,500 units of inventory on account for $0.95 per unit. (Matthias sold 2,500 of the $0.74 units.) Credit $1,600 Purchased 3,900 units of inventory on account at a cost of $0.74 per unit. Sold 4,200 units of inventory on account for $0.90 per unit. (Matthias sold 2,900 of the $0.60 units and 1,300 of the $0.74.) Journalize the December transactions, assuming Matthias uses the perpetual inventory method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) 2,900 Journalize the adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Account Titles and Explanation 18,200 (To record accrued expense) 7,340 (To record depreciation expense) $30,040 Debit Credit
On December 1, 2022, Matthias Company had the following account balances. Cash Accounts Receivable Inventory Equipment *(2,900 x $0.60) Dec. 3 5 7 The following transactions occurred during December. 17 Debit Date $4,300 3,700 1,740 Dec. 31 20,300 $30,040 (1) Accumulated Depreciation-Equipment Accounts Payable Common Stock Retained Earnings (2) Granted the December 5 customer $270 credit for 300 units of inventory returned costing $216. These units were returned to inventory. Purchased 2,500 units of inventory for cash at $0.80 each. 22 Sold 2,500 units of inventory on account for $0.95 per unit. (Matthias sold 2,500 of the $0.74 units.) Credit $1,600 Purchased 3,900 units of inventory on account at a cost of $0.74 per unit. Sold 4,200 units of inventory on account for $0.90 per unit. (Matthias sold 2,900 of the $0.60 units and 1,300 of the $0.74.) Journalize the December transactions, assuming Matthias uses the perpetual inventory method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) 2,900 Journalize the adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Account Titles and Explanation 18,200 (To record accrued expense) 7,340 (To record depreciation expense) $30,040 Debit Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:On December 1, 2022, Matthias Company had the following account balances.
Cash
Accounts Receivable
Inventory
Equipment
*(2,900 x $0.60)
Dec. 3
5
7
17
22
The following transactions occurred during December.
Date
Debit
Dec.
31
$4,300
3,700
1,740
20,300
(1)
$30,040
(2)
Accumulated Depreciation-Equipment
Accounts Payable
Common Stock
Retained Earnings
Credit
$1,600
Purchased 3,900 units of inventory on account at a cost of $0.74 per unit.
Sold 4,200 units of inventory on account for $0.90 per unit. (Matthias sold 2,900 of the $0.60 units and 1,300 of the
$0.74.)
Journalize the December transactions, assuming Matthias uses the perpetual inventory method. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for
the account titles and enter O for the amounts.)
2,900
Granted the December 5 customer $270 credit for 300 units of inventory returned costing $216. These units were
returned to inventory.
Purchased 2,500 units of inventory for cash at $0.80 each.
Sold 2,500 units of inventory on account for $0.95 per unit. (Matthias sold 2,500 of the $0.74 units.)
Journalize the adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not
indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)
Account Titles and Explanation
18,200
(To record accrued expense)
7,340
(To record depreciation expense)
$30,040
Debit
Credit
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