This paper circulates around the core theme of On December 1, 2014, Westmoreland Company had the following account balances. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
On December 1, 2014, Westmoreland Company had the following account balances.DebitCreditCash$18,200Accumulated Depreciation Equipment$3,000Notes receivable2,000Accounts payable6,100Accounts receivable7,200Common stock50,000Inventory16,000Retained earnings14,200Prepaid insurance1,600Equipment28,000$73,300$73,300During December, the company completed the following transactions.Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed).12 Purchased merchandise on account from Alice Co. $12,000, terms 1/10, n/30.17 Sold merchandise on account $16,000, terms 2/10, n/30. The cost of the merchandise sold was $10,000.19 Paid salaries $2,200.22 Paid Alice Co. in full, less discount.26 Received collections in full, less discounts, from customers billed on December 17.31 Received $2,700 cash from customers in payment of account (no discount allowed).Adjustment data:1. Depreciation $200 per month.2. Insurance expired $400.Instructions(a) Journalize the December transactions. (Assume 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, Insurance Expense, Salaries and Wages Expense, Sales Revenue, and Sales Discounts.(c) The statement from Dodge County Bank on December 31 showed a balance of $25,930.A comparison of the bank statement with the Cash account revealed the following facts.1. The bank collected a note receivable of $2,000 for Westmoreland Company on December 15.2. The December 31 receipts were deposited in a night deposit vault on December 31.These deposits were recorded by the bank in January.3. Checks outstanding on December 31 totaled $1,210.4. On December 31, the bank statement showed a NSF charge of $680 for a check received by the company from K. Quinn, a customer, on account.Prepare a bank reconciliation as of December 31 based on the available information.(d) Journalize the adjusting entries resulting from the bank reconciliation and adjustment data.(e) Post the adjusting entries to the ledger T-accounts.(f) Prepare an adjusted trial balance.(g) Prepare an income statement for December and a classified balance sheet at December31.
