Problem 2–11 Requirement 1 a. Sales revenue Accounts receivable 11/30 Balance 10,000 80,000 Cash collections Sales revenue ? 12/31 Balance 3,000 Sales revenue during December = $3,000 + 80,000 – 10,000 = $73,000 b. Cost of goods sold Accounts payable 12,000 11/30 Balance Cash paid 60,000 ? Purchases 15,000 12/31 Balance Purchases during December = $15,000 + 60,000 – 12,000 = $63,000 11/30 Balance Purchases 12/31 Balance Inventory 7,000 63,000 ? Cost of goods sold 6,000 Cost of goods sold during December = $7,000 + 63,000 – 6,000 = $64,000 2– Solutions Manual, Vol.1, Chapter 2 87 Problem 2–11 (concluded) c. Insurance expense 11/30 Balance Cash payment 12/31 Balance Prepaid insurance 5,000 5,000 ? Insurance expense 7,500 Insurance expense during December = $5,000 + 5,000 – 7,500 = $2,500 d. Wage expense Wages payable 5,000 11/30 Balance Cash payments 10,000 ? Wage expense 3,000 12/31 Balance Wage expense during December = $3,000 + 10,000 – 5,000 = $8,000 Requirement 2 2–88 Accounts receivable ........................................................ Sales revenue............................................................... 73,000 Cost of goods sold ........................................................... Inventory ..................................................................... 64,000 73,000 64,000