DebitsCash 7300Accounts Receivable 5600Merchandise Inventory 12000Supplies 1200Equipment 22000Total: $48100CreditsAccumulated Depreciation 2200Accounts Payable 4600Salaries Payable 1000Common Stock 15000Retained Earnings 25300Total: $48100During December the company completed the following summary transactions.Paid 1600 for salaries to employees 600 for December and 1000 for the month of November salaries payableReceived 1800 cash form customers in payment of account no discountSold merchandise for cash 6000 The cost of the merchandise was 4000.Purchased merchandise on account for 9000 terms 2/10.n/30 .Purchased supplies for cash 2000Sold merchandise on account 12000 terms 1/10n/30 The cost of the merchandise sold was 1800.Paid salaries 1800.Paid purchase for 9000 minus discountReceived collections in full less discount from customers 12000 terms 1/10Adjustment Data:Accrued salaries payable 600Depreciation 300 a monthSupplies on hand 1500Income Tax due and unpaid at end of December is 200InstructionsJournalize the December transactionsEnter the balances in T accounts and post December transactionsJournalize and post adjustmentsPrepare trial balancePrepare Income statement and retained earnings statement for the month of DecemberCheck:Totals: 66200Net Income: 680Ending cash balance 12760Merchandise inventory 8820Adjusting trial balance totals 66200Net Income 680Total Assets 46380