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On December 1, 2014, Seattle Company had the account balances shown below. The following...

Question:

On December 1, 2014, Seattle Company had the account balances shown below.

The following transactions occurred during December

Dec. 3 -Purchased 4,600 units of inventory on account at a cost of $0.72 per unit.

5 -Sold 4,900 units of inventory on account for $0.89 per unit. (It sold 3,400 of the $0.58 units and 1,500 of the $0.72.)

7- Granted the December 5 customer $178 credit for 200 units of inventory returned costing $110. These units were returned to inventory

17 -Purchased 2,300 units of inventory for cash at $0.81 each

22 -Sold 2,200 units of inventory on account for $0.95 per unit. (It sold 2,200 of the $0.72 units.)

Adjustment data:

1. Accrued salaries and wages payable $500.

2. Depreciation on equipment $150 per month.

a. Journalize the December transactions and adjusting entries, assuming Seattle Co. uses the perpetual inventory method.

Journals and Adjusting Entries:

Journal entries are the basic records of accounting. There should be some amount of prepaid expenses, outstanding expenses or accrued income, etc. at the end of the accounting period. We should account these items by recording adjusting entries in order to find out the accurate financial results.

Answer and Explanation: 1

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a. Journal Entries of Seattle Company for the month of December:

DateParticularsDebitCredit
Dec.3Inventory$3,312
Accounts Payable $3,3...

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What Is a General Journal in Accounting? - Definition, Format & Examples

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Chapter 1 / Lesson 17
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Learn about the general journal in accounting and see its use and purpose. Explore the format of journal entries and study a general journal accounting example.


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