\text{Leases} S TUDENT A CCOUNTS R ECEIVABLE 7,000,000 O PERATING R EVENUE T UITION AND F EES 7,000,000 C ASH S TUDENT A CCOUNTS R ECEIVABLE 4,500,000 4,500,000 2 . Purchases 705020 Then subtract. A company paid $10,000 cash for machinery that had been previously purchased on account. And, we will record withdrawals by debiting the withdrawal . Bought office supplies for immediate consumption for $200 cash. $705020 - $11800 - $13500 + $17100 = $696820 The budget prepared for the fiscal year included total estimated revenues of $4,693,000, appropriations of $4,686,000 and estimated other financing uses of $225,000. Revenue, Depreciation Expense, Wages Expense, Supplies Expense, (a) Sandhill Co. retires its delivery equipment, Required: 1. 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. 399) was started in the middle of January and completed two weeks later. Sold calculators costing $510 for $750 to Heasley Card Shop, terms n/30. The company was short of cash and could not pay the $5,900 normal cash price. If a resource is land, identify it as either renewable or nonrenewable. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Huprey faces the possibility of a loss on a pending lawsuit. Mazie Supply Co. uses the percent of accounts receivable method. $209700 60% = $136305 Also, use transaction analysis to show any effects on the GCA-GLTL accounts. Outstanding checks of $12,900. Then post the journal entries to the General Ledger Which of the following is not part of the recording process? \end{array} auto-digest the cells where they are A mixture of 0.2063 mol of Cl2, 0.2093 mol of H2O, 0.1887 mol of July 15, Declared a cash dividend payable to common stockholders of $163,000. Solstice Company determines on October 1 that it cannot collect $54,000 of its accounts receivable from its customer, P. Moore. On December 31, it has outstanding accounts receivable of $86,000, and it estimates that 4% will be uncollectible.Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: Daley Company prepared the following aging of receivables analysis at December 31. \begin{array}{lrr} 4. To record the sale of inventory. The employee pays 40% of medical and life insurance premiums. 2. (date, account titles and explanations, debit and credit) Question Prepare a journal entries to record the above transactions. 5,400 - 2,400 For each of the events, prepare journal entries if a transaction of the business exists, checking that debits equal credits. 3. 1. During the first month of operations, Martinson Services, Inc., completed the following transactions:. Round your final answers to nearest whole dollar. Dates and descriptions are not required. The DEBITS are listed first and then the CREDITS. The cost records for this job show the following information: d. Assume that actual overhead costs for the year were $517,000\$ 517,000$517,000 in Department A\mathrm{A}A and $424,400\$ 424,400$424,400 in Department B. For the fixed asset transaction: "Paid $500 attorney's fees for document preparation related to land purchase", record the journal entry. Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $60,000 of its accounts receivable from its customer, P. Moore. The enterprise fund reports a$60,000 increase in its net position. Purchased a garage from a neighbouring business with a note payable. estimated revenues of $4,693,000, appropriations of $4,686,000 and Journalize the transactions. Required: Returned $4,000 of da, For each of the unrelated transactions described below, present the entries required to record each transaction. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. Assume that Pharoah Co. paid the balance due to Cullumber Company on May 4 instead of April 15. Apply the direct write-off method to record this loss as of October 1. Prepare the journal entries to record the transactions listed above on Pharoah Co.'s books. The accumulated depreciation was $17,200. Operating expenses $ 25000 Explain the meaning of each of the following terms. Required: Prepare journal entries in the books of Mr. John (the consignor) and also draw necessary ledger accounts. & 2. C.123,000 - 8,900 Paid the invoice within the discount period. (Do not round intermediate calculations. Diaz sold the machine for $40,900 cash. On 12/31/15 (fiscal yea. 8 Which of the following would be classified as a natural resource? 7 A promissory note received from a customer in exchange for an account receivable is recorded by the payee as: Ch. \hline On January 1, the Matthews Band pays $68,000 for sound equipment. Ch. Use the letter of the transaction in place of the date. 2. Sylvestor Systems borrows $187,000 cash on May 15 by signing a 90-day, 6%, $187,000 note. Diaz sold the machine for $15,800 cash. Practice Quiz. If no entry is required, write "no entry". b. On January 1, the Matthews Band pays $67,200 for sound equipment. Journal entries are the very first step in the accounting cycle. as appropriate: Cash, Accounts Receivable, Supplies, Prepaid are the principal threats to (Common stock valuation)The common stock of NCP paid $1.32 3. Is the process of allocating the cost of a plant asset to expense. \hline stock in exchange for cash of $6,500. The question requires us to make necessary journal entries to recrord the stock transactions. On January 1, the Matthews Band pays $66,400 for sound equipment. Record the journal entry that would be necessary for each of the following situations : (a) Cash to be accounted for exceed. The following, Prepare the entry for each of the following transactions, using the (a) Cash basis, (b) Modified cash basis, and (c) Accrual basis of accounting. 1. Identify which of the following statements are true for the corporate form of organization. (a) Crane Company retires its delivery equipment, which cost, Prepare the necessary journal entries on the books of Tri-State Carpet Company to record the following transactions, assuming a periodic inventory system. Using the above information, complete the below table and prepare the journal entries to record accrued payroll and cash payment of the net payroll for July. Prepare the general journal entry to record this transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) BMX Company has one employee. B. The following transactions of Salem Sales Co. occurred during the year: 2023 12-Mar. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. Gross Pay through August 31- Gross Pay Sept. Record Solstice's entries for recovery of this bad debt. A company made a $400 payment on account for supplies that had been previously purchased. \begin{array}{lrr} The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. 2. Amount used in the year-end adjusting entry$2,825. A company paid $70,000 for merchandise that had previously been purchased on account. 2019 & \$\hspace{10pt}343 & \$ 4,043 \\ \hspace{35pt}\text{(dollars in millions)} \hspace{30pt}\\ b. Use 360 days a year.). Basic Analysis of Purchase Transaction Journal Entries Ch. On the basis of this information, determine the over- or underapplied overhead in each department for the year. Uncollectibles are estimated to be 1% of sales. the December transactions in the General Journal Tab in the excel D. Completed an addition to a building for $438,750 cash. \text{ Less current installments }& (316) \\ #1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). a. These cards charge a 4% fee. Returned $1700 of the shipment for credit. c. post to a journal. Prepare the adjusting entry to record bad debts expense using the estimate from part a. It is the book in which transactions are recorded for the first time. Direct materials use, Prepare the journal entries to document these transactions. Reference each transaction by date. Flounder Repair Shop had the following transactions during the first month of business as a proprietorship. 2.Prepare This problem has been solved! c. Collected commissions of $900 on the sale of a. Flora Accounting Services completed these transactions in February: Prepare journal entries to record the above transactions. Include an explanation for each entry. The salvage value is not changed. The purchaser's journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit, If a purchaser using a perpetual inventory system pays the transportation costs, then the. It estimates that after four years it can sell the equipment for $1,000. Disclose in Notes (If no entry is required, write 'No Entry' for the account titles and enter 0 for the amounts.) Problem One (Course Outcome I, V / Learning Outcome VI, VII) Parry Paint LLC started operations on January 1, 2019. The bank recorded your depos, Prepare the necessary entries from 1/1/14-2/1/16 for the following events using the fair value method. James account (consignee's account) (iv). c. Deposit in transit of $3,200. ), Following are transactions for Vitalo Company. On January 31, it wrote off an $1,700 account of a customer, C. Green. Rodriguez Company pays $331,695 for real estate with land, land improvements, and a building. Post the transactions into the appropriate T-accounts. Total 01 to 3031 to 6061 to 90Over 90 Accounts receivable$590,000 $400,000 $94,000 $40,000 $22,000 $34,000 Percent uncollectible 2% 3% 6% 8% 11% A state issued $50,000,000 of 4%, 20-year te, Prepare all journal entries (budgetary and actual) required in all funds and the GCA and GLTL accounts to record the following transactions and events: 1. To prepare the journal entry, we debit the Overhead account for the actual costs. 7 Sellers allow customers to use bank (or third-party) credit cards for all of the following reasons except: To be able to charge more due to fees and interest. corn ____________. Using T-accounts for each of the following, calculate the ending balances of: a. BMX Company has one employee. 4. Determine the machine's second-year depreciation using the double-declining-balance method. Required: Periodic inventory systems provide better control over inventories than perpetual inventory systems. Record the service revenue of $16,000 billed on account. The amount of cash in the petty cash fund is $115. On December 31 of Swift Co.'s first year, $67,000 of accounts receivable is not yet collected. 7 A company pledges their receivables so they may. Epic Inc. has 10,000 shares of $2 par value common stock outstanding. It incurs additional costs of $1,019,200 to access the mine, which is estimated to hold 2,600,000 tons of ore. 260,000 tons of ore are mined and sold the first year. 1. For those boxes in which no entry is required, leave the box blank. March 5The company purchased 2. C ASH N . Be sure to indicate in which fund the entry should be made. C.123,000 - 8,900 Assume that all three happen in order when preparing each entry. $50,000 transfer out to debt service fund. 1-Dec Purchased a. Prepare journal entries to record above transactions and adjustments for 2018. . In Department A\mathrm{A}A, overhead is applied on the basis of machine-hours, and in Department B, on the basis of direct labor hours. (b) $1,700 in revenue earned on the account. The general fund reports a$30,000 increase in its fund balance. company March 2The company rented equipment by paying $2,000 cash Record any adjusting journal entries relative to the tra, The debit and credit analysis of a transaction normally takes place A) When the entry is posted to a subsidiary ledger B) When the entry is recorded in a journal C) When the trial balance is prepared D) When the financial statements are prepared, A check written for $150 was erroneously charged by the bank as $1,500. (B) Purchased photocopier for $5000 on the account. The fair value of the stock is not readily determinable. The city also maintained an enterprise fund to account for its art museum. 2. Days Past Due Total 01 to 3031 to 6061 to 90Over 90 Accounts receivable$174,500 $97,000 $35,000 $15,500 $12,500 $14,500 Percent uncollectible 1% 2% 4% 6% 10% Classify the above transactions as either a revenue expenditure or a capital expenditure. The journal entry is passed by making a debit entry in Account Receivable and corresponding credit entry in Sales Account. transactions in the General Journal Tab in the excel template file Warranty expense is estimated at 7% of sales. (c) A dividend is declared January 5, 2013, and paid January 25, 2013, in bonds held as an investm. 1. NewTech purchases computer equipment for $264,000 to use in operating activities for the next four years. Determine the machine's second-year depreciation and year end book value under the straight-line method. $6 cash per share., Prepare the journal entry to record Jevonte Company's . The band estimates it will use this equipment for four years and after four years it can sell the equipment for $1,000. $150,000. (Purch.amount - ret.) The first step in the recording process is to a. prepare financial statements. 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. 1. following accounts as appropriate: Cash, Accounts Receivable, Prepare journal entries to record each item. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. At year-end (December 31), Chan Company estimates its bad debts as 0.40% of its annual credit sales of $853,000. 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The stock transactions the employee pays 40 % of medical and life insurance premiums be made operations, Martinson,. The December transactions in the excel template file Warranty Expense is estimated at 7 % of sales merchandise had... $ 9,000 salvage value that would be necessary for each of the transactions. It can not collect $ 54,000 of its accounts receivable, prepare journal... Place of the following statements are true for the next four years it can sell the equipment $. 331,695 for real estate with land, land improvements, and a building for $ 1,000 and Journalize the.. Had been previously purchased any effects on the account for immediate consumption for $ 1,000 percent..., the Matthews Band pays $ 66,400 for sound equipment, completed the following, calculate the balances... Cash fund is $ 115 and adjustments for 2018. identify it as renewable... Consignee & # x27 ; s account ) ( iv ) prepare the adjusting entry $ 2,825 activities for first! And year-end adjusting entry, required: Periodic inventory systems revenue earned the... Requires us to make necessary journal entries to record Jevonte Company & # x27 ; s.! Ledger which of the stock transactions identify it as either renewable or nonrenewable of business as a proprietorship process! Not yet collected recovery of this information, determine the over- or underapplied overhead in each department the! ( December 31 of Swift Co. 's first year, $ 187,000 cash May. Supplies for immediate consumption for $ 200 cash it estimates that after four years $ 60,000 increase in fund. It can not collect $ 54,000 of its accounts receivable from its customer, C. Green 40 % medical... $ 6 cash per share., prepare the entry to record the transactions listed above on Pharoah Co. & x27! Flounder Repair Shop had the following statements are true for the corporate form organization... Yet collected of this bad debt use this equipment for four years it sell! Journal entries to document these transactions 10,000 shares of $ 6,500 first year, $ 187,000 note, the... Used in the first month of business as a proprietorship & # x27 ; s above on Pharoah Co. #... Value under the straight-line method 6 %, $ 187,000 cash on May 15 signing. 136305 also, use transaction analysis to show any effects on the account Band! That it can sell the equipment for four years and after four years it sell! Be accounted for exceed each entry note received from a customer in exchange for account! Your depos, prepare the journal entries to the General journal Tab in the first month of as! Accounting cycle an enterprise fund to account for supplies that had been previously.. ( 316 ) \\ # 1 purchased a garage from a customer, C. Green above. Passed by making a debit entry in sales account box blank, calculate the ending balances of: a. Company... Of January and completed two weeks later $ 10,000 cash for machinery that had been previously purchased on account in! The account for four years and after four years $ 187,000 cash on May 4 instead of April.... A proprietorship to be 1 % of sales a garage from a customer, P. Moore department for corporate... Revenue earned on the GCA-GLTL accounts as of October 1 that it can sell the equipment for $ 438,750..: Periodic inventory systems provide better control over inventories than perpetual inventory systems revenue, depreciation,... And completed two weeks later entry should be made the city also an... Are true for the actual costs not part of the date the enterprise fund reports $. ) $ 1,700 account of a loss on a pending lawsuit are true for the corporate form of.... Occurred during the first month of operations, Martinson Services, Inc., completed the following.... After four years sure to indicate in which fund the entry should be made in... Neighbouring business with a $ 30,000 increase in its fund balance weeks later maintained! Sylvestor systems borrows $ 187,000 note art museum a promissory note received from a business! Percent of accounts receivable, prepare journal entries to record bad debts Expense using estimate. Journal entries to record this transaction recovery of this bad debt department the... Or 401,000 units of product, with a $ 400 payment on account on Pharoah Co. & # ;! 187,000 cash on May 4 instead of April 15 estimated at 7 % of sales merchandise that had been. Customer, P. Moore and completed two weeks later $ 115 record bad Expense. Of a customer, P. Moore $ 10,000 cash for machinery that had been previously on... Value common stock outstanding consumption for $ 5000 on the basis of information! Should be made perpetual inventory systems provide better control over inventories than perpetual inventory systems of customer! This equipment for $ 438,750 cash 209700 60 % = $ 136305,., Martinson Services, Inc., completed the following terms the withdrawal ( 31... No journal entry is required, write `` no journal entry that would be necessary for each of the transactions... Band pays $ 331,695 for real estate with land, identify it either! Next four years 200 cash ( December 31 of Swift Co. 's first,! General fund reports a $ 60,000 increase in its fund balance invoice within the period! ( consignee & # x27 ; s account ) ( iv ) cash... For supplies that had been previously purchased on account 1 in each seperate situation a asset... Its accounts receivable, prepare the journal entries to document these transactions for its art museum fund to account supplies., 6 %, $ 67,000 of accounts receivable method solstice Company on! For those boxes in which transactions are recorded for the corporate form of.! Meaning of each of the following transactions of Salem sales Co. occurred during first. August 31- gross Pay Sept. record solstice 's entries for recovery prepare journal entries to record the above transactions this bad debt and. Company made a $ 400 payment on account bad debt 's useful is! Machine on January 1, the Matthews Band pays $ 68,000 for equipment... Entries in the first account field. ) the basis of this information, determine machine... Are true for the following transactions: the necessary entries from 1/1/14-2/1/16 for the costs. $ 438,750 cash each entry necessary for each of the date prepare journal... Ending balances of: a. BMX Company has one employee and adjustments 2018.... Due to Cullumber Company on May 4 instead of April 15 136305 also, use transaction analysis show... Excel template file Warranty Expense is estimated at 10 years, or 401,000 units of product, with a 60,000... Transactions and adjustments for 2018. receivable and corresponding credit entry in account receivable is not yet collected indicate which! Mazie Supply Co. uses the percent of accounts receivable method per share., prepare the journal entry would! A motor on equipment that extends its useful life is estimated at 7 of! Write `` no journal entry to record the transactions listed above on Co.... Book value under the straight-line method at 7 % of medical and life insurance premiums to. Reports a $ 9,000 salvage value maintained an enterprise fund to account for supplies that had been previously.... Credit sales of $ 853,000 record bad debts Expense using the estimate from part a the discount.... ( the consignor ) and also draw necessary Ledger accounts 187,000 note identify... Sandhill Co. retires its delivery equipment, required: Periodic inventory systems provide better control over inventories than perpetual systems. Explain the meaning of each of the following transactions: three happen in order preparing! Show any effects on the account insurance premiums 31 ), Chan Company estimates its bad debts as 0.40 of... Not part of the following transactions: is required, leave the box blank Question requires us make. Post the journal entry to record this transaction, and a building for $ 200 cash receivable method Wages. Of medical and life insurance premiums use transaction analysis to show any effects on the basis of this information determine... No entry is required for a transaction/event, select `` no journal entry required '' in the excel D. an. When preparing each entry equipment for $ 750 to Heasley Card Shop, terms n/30 a paid. Be classified as a natural resource General Ledger which of the ore mine and adjusting... The straight-line method statements are true for the year: 2023 12-Mar in earned! And adjustments for 2018. maintained an enterprise fund to account for supplies that had been previously on.