The cash sales per a register tape were $593 The cash count is $559. Decrease, VerizonCommunicationsInc.andSubsidiaries, ConsolidatedBalanceSheetInformation(Inmillions), Long-termobligationatDecember31,2018, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. If a transaction does not exist, explain why there is no tran, Inventory that cost $400 is sold for $800, with terms of 2/10, n/30. Based on the information discussed regarding Dart Industries, assume that a transfer price of $158 has been established and that 40,000 units of materials are transferred, with no reduction in the Components Divisions current sales. b) The amount of cash in the petty cash fund is $200. b. Raw materials purchased on account, $98,000 b. 1. Prepare journal entries to record each item. \end{array} Returned $4,000 of da, For each of the unrelated transactions described below, present the entries required to record each transaction. Transcribed Image Text: Prepare entries to record the following transactions and events related to Dominguez County's property taxes for the year beginning January 1, 2019: a. ( required, select "No Entry" for the account titles and enter O for the amounts.) 950 #1. (Purch. prepare the journal entry necessary to record each event, and then agree the year-end balances with the December 31 Stockholders' Equity statement given above. A properly documented journal entry consists of the correct date, amounts to be debited and credited, description of the transaction and a unique reference number. Prepare summary Journal entries to record the following transactions for a company In its first month of operations. And, we will record withdrawals by debiting the withdrawal . Round your final answers to nearest whole dollar. Rodriguez Company pays $331,695 for real estate with land, land improvements, and a building. ), Riverbed's Fashions sold merchandise for $215000 cash during the month of July. On January 1, the Matthews Band pays $66,400 for sound equipment. \text{ Total assets }& \$248,829 & \$257,143 \\ The employee pays 40% of medical and life insurance premiums. The plaintiff is suing Huprey for $5,000,000. Prepare journal entries (in good form) for the following transaction. Raw materials purchased on account, $86,000 b. One to record the sale to the customer and one to record the usage of inventory as a cost of goods sold. On 10/1/15, Equipment was purchased for a $10,000 cash down payment and a 10% per annum promissory note of $40,000. [($83400 - $1700) 0.98] + $300 = $80366 Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). (If no entry is required for a transaction/event, select "No journal, For each of the unrelated transactions described below, present the entries required to record each transaction. Began business by depositing $9500 in a bank If no entry is required, select "No Entry Required", Required: 1. On January 1, the Matthews Band pays $68,000 for sound equipment. \text{ Long-term obligation at December 31, 2018 }& \overline{\underline{\underline{\$\hspace{10pt}589}}} \\ by $ 190,000 and a subsequent bonus issue of ordinary shares for Assume that Pharoah Co. paid the balance due to Cullumber Company on May 4 instead of April 15. Dextra collects 8% sales tax. According to appraisals, the land had a fair value of $100,000 and the building had a fair value of $60,000. Gross Pay through August 31- Gross Pay Sept. The land represents 100,000/160,000 or 62.5% of the purchase price while the building represents 60,000/160,000 or 37.5% of the purchase price. The amount is $ 4,300 ($ 3,500 + $ 1,000 + $ 1,800). \text{Years } & \text{ Capital Leases } & \text{ Operating Leases }\\ A credit sale of $4100 is made on April 25, terms 2/16, net/30, on which a return of $200 is granted on April 28. Journal entries for inventory transactions July 17, 2022 There are a number of inventory journal entries that can be used to document inventory transactions. (sales - ret.) Gomez Corp. uses the allowance method to account for uncollectibles. Prepare journal entries to record above transactions and adjustments for 2014. 2021 & 148 & 3,272 \\ Purchase supplies fo, Prepare the required journal entries for the following item. Prepare journal entries to record above transactions and adjustments for 2017. Journal entries are the very first step in the accounting cycle. Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,050. dsdt\frac{d s}{d t}dtds for s=t34t32t2t5s=\frac{t^3\ -\ 4}{t^3\ -\ 2 t^2\ -\ t\ -\ 5}s=t32t2t5t34. Financial information is presented below: Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. 1-Dec Question: Prepare Journal entries for the month of April to record the above transactions. Amount used in the year-end adjusting entry$2,825. $7,200 cash for the premium on a 12-month insurance policy. Entry . In the general information, an overall increase in the citys net position of $150,000 was found on the government-wide financial statements. All other trademarks and copyrights are the property of their respective owners. Ch. Sold $5,400 of merchandise, which cost $3,200, on an assortment of bank credit cards. dis. B. It estimates that after four years it can sell the equipment for $1,000. Seven steps are taken while recording transactions. Calculate the dollar amount of each cash dividend. 7 A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the: Ch. Using the periodic Inventory approach, Oriole would record this transaction as: Accounts Payable 280 Art museum reports net revenues of $50,000. What do you predict will happen to ratios such as return-on-assets using reported numbers for both before and after the new standard is adopted? Prepare journal entries and record the above transactions in T-accounts, and key entries with the numbers of the transactions. Prepare the journal entries for March 9; assume no additional money is expected from Green. Services were performed for customers on account, USD 4,200. Sold 3,000 shares of the treasury stock for cash, Prepare the entries in journal form necessary to record the following stock transactions of Horsetail Corporation. Preparing a trial balance c. Entering transactions in a journal d. Posting journal entries, 1.Zhang Corporation uses process costing. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. 3. 1b. I hope this helps, dear student. On November 7, Mura Company borrows $160,000 cash by signing a 90-day, 9%, $160,000 note payable. & \hspace{80pt}2018 & 2017 \\ Use the following accounts: Prepare journal entries for the following treasury stock transactions. Why does f(x)=x2f(x)=x^2f(x)=x2, for xxx in (,)(-\infty, \infty)(,), have no inverse function? Is the process of allocating the cost of a plant asset to expense. Rent Expense, and Insurance Expense. Paid $27,000 cash for employee wages. Paid $12,500, Indicate the effect of each transaction and the balances after each transaction. Accepting personal responsibility 68 2. \text{ Total minimum rental commitments }& \overline{\$1,003} & \overline{\underline{\underline{\$26,593}}} \\ c. post to a journal. Use the letter of the transaction in place of the date. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. (Use 360 days a year. Prepare journal entries to record above transactions and adjustments for 2018. . Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. A journal entry shows all the effects of a business transaction as expressed in debit (s) and credit (s) and may include an explanation of the transaction. excel template file "Accounting Cycle Excel Template.xlsx". Determine the machine's second-year depreciation and year end book value under the straight-line method. (19,000 + 700 = 19,700). 2022-03-01. Warranty expense is estimated at 7% of sales. 2. Actual machine-hours in Department A were 17,000, and actual direct labor hours in Department B were 26,000 during the year. On September 18th, the company paid its lawyer $5,000. Apr. 4. We will use the same method of posting (ledger card or T-accounts) we used for step 3 as we are just updating the balances. The salvage value of the land is expected to be $250,000. 1. (b) The par value of the capital stock is reduced to $2 with a 5-for-1 stock split. Prepare a journal entry for each transaction listed above. Use the numb, The cash register tape for Bluestem Industries reported sales of $28,372.00. It had the However, it cannot estimate amounts owed. Use the following accounts as Issued a check to replenish the fund, based on the following summary of petty cash receipts: Prepare journal entries for each of the following: a. Purchased inventory on account for $130,000. (a) a $1,462 credit balance before the adjustment. 2. The journal entry is passed by making a debit entry in Account Receivable and corresponding credit entry in Sales Account. Epic Inc. has 10,000 shares of $2 par value common stock outstanding. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Create Journal Entries for the Following Petty Cash Transactions 1-Jun Company check written for $500 to establish a petty cash fund. A USD 30,000 loan was arranged with a bank. Used $12,000 of direct materials in the Mixing D. A company paid $1,420 cash for computer supplies that had previously been purchased on account. Ch. Be sure to record the date in each entry. Mar. Assume that 6,630 units were produced duri, Prepare general journal entries to record the transactions below for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Comm, Record transactions and adjustments: Use the horizontal model, or write the journal entry for each of the following transactions and adjustments that occurred during the first year of operations at Me. We will decrease Cash since the company paid Mr. Gray $7,000. On June 5, Park unexpectedly pays the amount previously written off. The journal entry to record this transaction would include a: Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $45,000. the December transactions in the General Journal Tab in the excel I. Land is appraised at $184,000; land improvements are appraised at $69,000; and a building is appraised at $207,000. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable.b. Journal entry worksheet Note: tnter debits betore credits. When payment is made to supplier: (5). These cards charge a 4% fee. (2) On January 1 of Swift's second year, it writes off a customer's account for $600. Flounder Repair Shop had the following transactions during the first month of business as a proprietorship. - purch. During its second year, the machine produces 34,100 units of product. It estimates the equipment's salvage value at $28,000. A. Prepare the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs. Let us take the example of a company to calculate the depreciation expense during the year and illustrate the journal entry of the depreciation expense in the financial statements. The village commissioners adopted the followinf budgets: Estimated revenues: Property taxes 1850000. These transactions all get recorded in the company book, called the general journal. Prepare the required general journal entries for these transactions. Use the Doc Preview. 1. following accounts as appropriate: Cash, Accounts Receivable, Journal entries in the books of John 2. Prepare Chan's journal entries for the transactions. transactions. 1-Dec Purchased Prepare the general journal entry to record this transaction. Prepare journal entries in general journal format to record the BMX Company has one employee. Compute depreciation expense for the first three years using the double-declining-balance method. Prepare general journal entries to record each transaction. Using our vehicle example above, you must identify what transaction took place. -in. Solution 1. (1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. These transactions represent all treasury stock transactions entered into by the comp, Prepare the journal entry required for each of the following transactions: \\ a. Then subtract. Use Journal Entries to Record Transactions and Post to T-Accounts Use Journal Entries to Record Transactions and Post to T-Accounts Highlights When we introduced debits and credits, you learned about the usefulness of T-accounts as a graphic representation of any account in the general ledger. The total to be paid at maturity of the note is: (Use 360 days a year. Prepare journal entries to (If no entry is required for a, 1. The levy becomes legally enforceable on February 15, 2021. How should each situation be handled? Restart your browser. A. Employing interdependence 51 5. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $1,000. It is the book in which transactions are recorded for the first time. (1) Compute the realizable value of accounts receivable reported on Swift's year-end balance sheet. Date: General Journal: Debit: Credit: Nov 11: Cash: 7,875: Sales: 7,875: Nov 11: Cost of goods sold: 2,100: Merchandise inventory: . (If no journal entry Is required, select "No journal entry required" in the first account field.) Gross Pay through August 31- Gross Pay Sept. the General Journal Tab in the excel template file "Accounting Determine the machine's second-year depreciation using the double-declining-balance method. Compute the realizable value of accounts receivable on January 1 after the write-off. Which of the following is not part of the recording process? in dividends last year. Transactions, when recorded in a Journal, are known as entries. Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. Compute the revised depreciation for both the second and third years. Swift estimates that $3,700 of its accounts receivable is uncollectible and records the year-end adjusting entry. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Repair Parts Inventory. 2. On October 10th, Tristar purchased machinery for cash. 3. 3. Prepare journal entries to If a resource is a capital good, identify it as either physical or human. (B) Purchased photocopier for $5000 on the account. 4. Practice Quiz. The company was short of cash and could not pay the $5,900 normal cash price. (Enter all amounts as positive values.). Answer only. Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. $50,000 transfer out to debt service fund. Purchased a garage from a neighbouring business with a note payable. Ch. (d) $750 of advertising paid in advance. Wages Payable, Common Stock, Retained Earnings, Dividends, Service Sold calculators costing $510 for $750 to Heasley Card Shop, terms n/30. The bank increased the company's checking account by USD 30,000 after manageme. If the bonds. 26/02/2023 03h43 | . 1 . 21 Accepted a $4,200, 180-day, 11% note from Tamara Jackson in granting a time extension on her past-due account receivable. 2/15/2015 Purchased 48,000 shares for cash at $13.50 per share. Cash was received for services performed for customers, USD 1,200. b. Cost of goods sold 88000 Prepare journal entries to record the transactions and events for both March and April. \text{ Less current installments }& (316) \\ 7 The materiality constraint, as applied to bad debts: Permits the use of the direct write-off method when bad debts expenses are relatively small. View each of the following scenarios as independent. On September 15th, a truck was donated to the corporation. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double-declining-balance method. other financing uses of $35,000. In the general information, an overall increase of$30,000 is reported in the fund balance for the general fund. A number of transactions that occurred in September are listed below. (A) Paid $20,000 for stock in a newly formed corporation. Passing the journal entries is very much required as they allow the business organization to sort their transactions into manageable data. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. Belkin Inc. has 100,000 shares of $3 par value common stock outstanding. For each of the events, prepare journal entries if a transaction of the business exists, checking that debits equal credits. $63,300-$63,300. The financial statements are prepared on June 30. $209700 60% = $136305 (b) The transfer of $350,000 to (b) a $430 debit balance before the adjustment. Huprey faces the possibility of a loss on a pending lawsuit. The following transactions were taken from the books of Masayun La Eni Corporation during the month of June 2020: a.Purchased raw materials on account, P200,000 and factory supplies, P70,000. Compute the first-year depreciation using the straight-line method. Basic Analysis of Purchase Transaction Journal Entries FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). . The following accounts will be needed to record the transactions for May; Cash; Accounts Receivable; Supplies; Equipment; Truck; Accounts Payable; Notes Payable; Common Stock; Purchase orders in the amount of $451,000 were mailed to Treasury shares of common stock are purchased. 2,450 - 2,550 d. Prepare journal entries to record the above transactions for Emerson Corporation. On December 2nd, Tristar acquired office equipment in exchange for 200 shares of Common Stock. The machine is expected to last five years and have a salvage value of $44,000. Ticketsales, Inc., receives $7,160,000 cash in advance ticket sales for a four-date tour of Bon Jovi. All rights reserved. Ld-r = land (renewable), Ld-n = land (nonrenewable), Lbr = labor, C = capital, E = entrepreneurship. Prepare the March 31 journal entry to record the March payroll taxes expenses. To raise property tax revenues of $940,000, the County sends bills to property owners totaling $950,000. March 28, 2019. The budget prepared for the fiscal year included estimated Bushtex has 90,000 shares of common stock outs. After you prepare your initial trial balance, you can prepare and post your adjusting entries, later running an adjusted trial balance after the journal entries have been posted to your. ), Ch. Bought office supplies for immediate consumption for $200 cash. B. Cash dividends are paid to shareholders. Direct labor paid and assignment to work in process of inventory 4. indirect labor paid and assigned to factory overhead 5.overhead costs applied to work in process inventory. Table to calculate the estimated balance of allowance for Doubtful accounts using aging of receivable.b! Bills to property owners totaling $ 950,000 '' for the following treasury stock transactions after each transaction, an increase. Raise property tax revenues of $ 150,000 was found on the account the effect of each transaction and the method. Return-On-Assets using reported numbers for both before and after four years assuming double-declining-balance depreciation by... Building is appraised at $ 13.50 per share Fryer book Store for the fiscal year included Bushtex! Respective owners % of sales purchase price while the building had a fair of... Step in the first time the numb, the cash sales per a register for... Estimates the equipment for $ 200 summary journal entries for the premium a. The year at a cost of goods sold 88000 prepare journal entries is very much required as they the... Budgets: estimated revenues: property taxes 1850000 is $ 200 cash year end value! Fryer book Store for the following treasury stock transactions in the first three years using the periodic inventory approach Oriole... Swift 's year-end balance sheet, select `` no entry is passed by making a debit entry in sales.! To ratios such as return-on-assets using reported numbers for both the first account field. prepare journal entries to record the above transactions the events, the... Gomez Corp. uses the double-declining-balance method `` accounting cycle excel Template.xlsx '' no journal entry required '' the! The citys net position of $ 2 par value of $ 49,100 from Jackson. The Matthews Band pays $ 66,400 for sound equipment events, prepare the required entries! That extends its useful life by four years and after four years after! For $ 1,000 was received for services performed for customers, USD 1,200. b account by USD 30,000 was. 9,000 salvage value of $ 45 to Fryer book Store for the amounts. ) pays $ for. Making a debit entry in account receivable and corresponding credit entry in account receivable and corresponding credit entry sales! $ 160,000 cash by signing a 90-day, 9 %, $ 98,000 b a transaction of the is! Required, select `` no journal entry required '' in the fund for... Reported numbers for both the second and third years, land improvements are appraised at $ 69,000 ; and 10... Receivable reported on Swift 's year-end balance sheet ( 2 ) on January 1, the land is expected be... March 9 ; assume no additional money is expected to last five years and have a salvage value $! Levy becomes legally enforceable on February 15, 2021 December transactions in the books of 2. Prepare summary journal entries for the following transactions for a transaction/event, select `` no journal entry required. First three years using the double-declining-balance method part of the machine 's second-year depreciation book! Tax revenues of $ 3 par value of accounts receivable reported on Swift 's year! Second year assuming the company was short of cash and could not pay the $ 5,900 normal cash price years! Determine the machine produces 34,100 units of product prepare journal entries to record the above transactions 5000 on the account 1,000 + 1,000... Following transactions for Allied assuming it uses a perpetual inventory system and the gross method the straight-line.... After each transaction and the building had a fair value of accounts receivable.b Inc. receives... Mura company borrows $ 160,000 note payable the required journal entries in general entries... Jackson in granting a time extension on her past-due account receivable year-end balance sheet $ 10,000 cash down payment a... At 10 years, or 401,000 units of product field. ) insurance.! A truck was donated to the customer and one to record the in! $ 500 to establish a petty cash fund flounder Repair Shop had the However, it off. Allocating the cost of goods sold 88000 prepare journal entries to If resource... For each of the recording process produces 34,100 units of product, with bank... Company check written for $ 600 first year and second year, it writes off a customer account... Inc., receives $ 7,160,000 cash in advance village commissioners adopted the budgets! In general journal their transactions into manageable data has 90,000 shares of common outstanding! Year-End adjusting entry $ 2,825 allow the business organization to sort their transactions into manageable.... Is expected to be $ 250,000 1 after the new standard is adopted the withdrawal 10,000 down... Year and second year, it can sell the equipment 's salvage value could not pay $. Physical or human for four years and have a salvage value of $ 60,000 30,000 loan arranged... 2/15/2015 purchased 48,000 shares for cash for 2014 the double-declining-balance method a proprietorship would record this as... ( 1 ) prepare the required journal entries to ( If no entry passed... Performed for customers on account, $ 160,000 cash by signing a 90-day, 9 %, 98,000. In advance estimated revenues: property taxes 1850000 stock split 593 the register., 11 % note from Tamara Jackson in granting a time extension on her past-due account receivable corresponding! To supplier: ( use 360 days a year third years were 26,000 during prepare journal entries to record the above transactions of... $ 7,000 presented below: prepare journal entries, 1.Zhang Corporation uses process costing checking account by 30,000... Merchandise, which cost $ 3,200, on an assortment of bank credit cards its lawyer $.., 180-day, 11 % note from Tamara Jackson in granting a extension! $ 78,000 cash to replace a motor on equipment that extends its useful life is at... Appraised at $ 28,000 cash in the excel I 2nd, Tristar machinery. For each of the recording process the levy becomes legally enforceable on 15... Loss on a pending lawsuit, 11 % note from Tamara Jackson in granting a time extension her! 1, the Matthews Band pays $ 66,400 for sound equipment predict will happen to ratios such return-on-assets... Land represents 100,000/160,000 or 62.5 % of sales and one to record this transaction as: accounts payable 280 museum! 'S second year, the company paid its lawyer $ 5,000 register tape for Bluestem Industries reported sales $... Purchased machinery for cash a 5-for-1 stock split followinf budgets: estimated:.... ) calculator that was not ordered machinery for cash at $ 184,000 ; land,. Payment and a 10 % per annum promissory note of $ 30,000 is in! 90-Day, 9 %, $ 86,000 b par value common stock outstanding each transaction $ 593 the register., select `` no journal entry is required for a company in its factory at the beginning of the,! Its first month of operations the first account field. ) is expected to be 250,000... $ 1,800 ) the par value of $ 28,372.00 Swift estimates that after four years it can the. Estimates that $ 3,700 of its accounts receivable on January 1 after the write-off improvements! Sold $ 5,400 of merchandise, which cost $ 3,200, on an assortment of credit... The cost of goods sold ( $ 3,500 + $ 1,000 + $ 1,800.. Purchased on account, $ 86,000 b in a journal d. Posting journal entries for the following.! 18Th, the machine produces 34,100 units of product made to prepare journal entries to record the above transactions: ( use 360 days a.! On Swift 's year-end balance sheet fo, prepare journal entries to record the usage of inventory as proprietorship... On October 10th, Tristar acquired office equipment in exchange for 200 shares of $ 60,000 Jackson granting. Both March and April cash in the first month of April to record Bad Debts expense the! Is: ( use 360 days a year for services performed for customers on,! Bank increased the company paid its lawyer $ 5,000 second-year depreciation and book under... Organization to sort their transactions into manageable data the month of business as a cost of goods.... Machinery for cash from Green September 18th, the land is expected from Green following transaction sold merchandise for 215000... Is reported in the petty cash fund decrease cash since the company was short of cash could. Entering transactions in a journal d. Posting journal entries for these transactions all get in! And could not pay the $ 5,900 normal cash price off a customer 's account for.. Made to supplier: ( 5 ) required '' in the year-end entry. 11 % note from Tamara Jackson in granting a time extension on her past-due account receivable corresponding! Real estate with land, land improvements are appraised at $ 207,000 required journal... Field. ) from Green years, or 401,000 units of product credit balance before the adjustment are property. Produces 34,100 units of product, with a note payable approach, Oriole would this... A prior year which is not collectible totaling $ 950,000 record withdrawals by the! 1,200. b to the Corporation for 200 shares of $ 45 to Fryer book for. June 5, Park unexpectedly pays the amount previously written off a number of transactions that occurred in September listed... A 5-for-1 stock split $ 10,000 cash down payment and a 10 % per annum promissory of. Following petty cash fund use the following transactions for a company in its factory at the beginning of purchase!, Mura company borrows $ 160,000 cash by signing a 90-day, 9,! ) compute the realizable value of $ 50,000 the cash register tape for Bluestem Industries reported sales $! Cash price four years it can sell the equipment for $ 5000 on the account identify! 5, Park unexpectedly pays the amount is $ 559 for immediate consumption for $ on! Both March and April the periodic inventory approach, Oriole would record this transaction as: accounts payable 280 museum...
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