mastiff504
Mar 20, 2013, 08:34 PM
Hi all! I've been working all day on this accounting problem and can't seem to get the correct answer for Supplies and Supplies expense. Here is the question:
On December 1, 2012, Shiras Distributing Company had the following account balances.
Debits Credits
Cash 7,450 Accumulated Depreciation—Equipment 2,332
Accts Receiv. 5,560 Accounts Payable 4,950
Inventory 11,650 Salaries and Wages Payable 1,160
Supplies 1,470 Common Stock 15,210
Equip. 23,320 Retained Earnings 25,798
During December, the company completed the following summary transactions.
Dec. 6 Paid $1,810 for salaries due employees, of which $650 is for December and $1,160 is for November salaries payable.
8 Received $1,890 cash from customers in payment of account (no discount allowed).
10 Sold merchandise for cash $6,770. The cost of the merchandise sold was $3,890.
13 Purchased merchandise on account from Gong Co. $9,000, terms 2/10, n/30.
15 Purchased supplies for cash $1,750.
18 Sold merchandise on account $13,000, terms 3/10, n/30. The cost of the merchandise sold was $8,200.
20 Paid salaries $1,580.
23 Paid Gong Co. in full, less discount.
27 Received collections in full, less discounts, from customers billed on December 18.
Adjustment data:
1. Accrued salaries payable $680.
2. Depreciation $212 per month.
3. Supplies on hand $1,580.
4. Income tax due and unpaid at December 31 is $200.
My December 15 journal entry for Supplies is:
Supplies 1,750
Cash 1,750
This is where it gets frustrating for me. For the adjusted journal entry, I am getting:
Supplies Expense 170
Supplies 170
For the t ledger account post, I am getting:
12/1 Bal. 1470 12/31 170
12/15 1750
12/31 Bal. 3050
I thought those were the correct answers. I have every other answer correct. Could someone please guide me in the right direction. I'm not sure what I'm doing wrong. Thank you so much for your help!
On December 1, 2012, Shiras Distributing Company had the following account balances.
Debits Credits
Cash 7,450 Accumulated Depreciation—Equipment 2,332
Accts Receiv. 5,560 Accounts Payable 4,950
Inventory 11,650 Salaries and Wages Payable 1,160
Supplies 1,470 Common Stock 15,210
Equip. 23,320 Retained Earnings 25,798
During December, the company completed the following summary transactions.
Dec. 6 Paid $1,810 for salaries due employees, of which $650 is for December and $1,160 is for November salaries payable.
8 Received $1,890 cash from customers in payment of account (no discount allowed).
10 Sold merchandise for cash $6,770. The cost of the merchandise sold was $3,890.
13 Purchased merchandise on account from Gong Co. $9,000, terms 2/10, n/30.
15 Purchased supplies for cash $1,750.
18 Sold merchandise on account $13,000, terms 3/10, n/30. The cost of the merchandise sold was $8,200.
20 Paid salaries $1,580.
23 Paid Gong Co. in full, less discount.
27 Received collections in full, less discounts, from customers billed on December 18.
Adjustment data:
1. Accrued salaries payable $680.
2. Depreciation $212 per month.
3. Supplies on hand $1,580.
4. Income tax due and unpaid at December 31 is $200.
My December 15 journal entry for Supplies is:
Supplies 1,750
Cash 1,750
This is where it gets frustrating for me. For the adjusted journal entry, I am getting:
Supplies Expense 170
Supplies 170
For the t ledger account post, I am getting:
12/1 Bal. 1470 12/31 170
12/15 1750
12/31 Bal. 3050
I thought those were the correct answers. I have every other answer correct. Could someone please guide me in the right direction. I'm not sure what I'm doing wrong. Thank you so much for your help!