12.     Record the following transactions for the year 20x1, using T-accounts (open any accounts you may need). The Burnside Company uses the periodic inven- tory procedure.

a.     Sales of $150,000 were made, of which $90,000 were made on account.

b.    Collections during the period from customers were $95,000.

c.     Merchandise purchased on account during the period was $80,000.

d.    The merchandise inventory on December 31, 20x1, was $45,000.

e.     Payments to trade creditors for merchandise and supplies purchased were

$85,000.

f.     Supplies purchased on account during the period were $5,500.

g.     On December 15, 20x1, the rent for 20x2 was paid, $5,000. The rent for the year 20x1 was $4,000.

h.    As of December 31, 20x1, the company owed its employees wages totaling

$5,000. During the year, employees were paid $70,000.

i.    Supplies on hand as of December 31, 20x1, were $900. The account balances before the transactions were as follows:

December 31, 20x0

 

Â	Debits	Â	Credits
Cash	$ 90,000	Â	Â
Accounts Receivable	59,500	Â	Â
Merchandise	60,000	Â	Â
Supplies	1,500	Â	Â
Rent (Prepaid)	4,000	Â	Â
Wages Expense	—	Â	Â
Cost of Goods Sold	—	Â	Â
Supplies Expense	—	Â	Â
Rent Expense	—	Â	Â
Accounts Payable	Â	Â	$ 16,000
Wages Payable	Â	Â	24,000
Sales	Â	Â	—
Common Stock	Â	Â	100,000
Retained Earnings	Â	Â	75,000
Â	$215,000	Â	$215,000