If Bramble Company remits a check taking advantage of the discount offered, what is the amount of Bramble Company's check? A company paid $193 for office supplies that had been previously purchased on account. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $2,500 of federal income taxes, $867 of medical insurance deductions, and $150 of union dues. Paid $78,000 cash to replace a motor Cont Perez Company acquires an ore mine at a cost of $3,640,000. -Ownership rights cannot be easily transferred. (Do not round intermediate calculations. It estimates the equipment's salvage value at $28,000. BMX Company has one employee. 2. First, the business transaction has to be identified. Paid $300 freight on the shipment. Prepare the journal entries to record transactions a and d. A. Mastering self-management 53 4. According to appraisals, the land had a fair value of $100,000 and the building had a fair value of $60,000. 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. Received $3,000 from customers in transaction 1. Use the numb, The cash register tape for Bluestem Industries reported sales of $28,372.00. 1. Materials purchases (on credit). billed customers for services performed journal entry. Huprey faces the possibility of a loss on a pending lawsuit. 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. The related depreciation is normally a deductible expense and is calculated based on the asset's value. Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,050. (c) The revaluation of land upwards estimated other financing uses of $225,000. a. Diaz sold the machine for $15,800 cash. (If no entry is required, record "No Entry" for the account titles and enter 0 for the amounts.). Freight-in 17100 All money the government receives must be spent during 2021 or later. Sold goods for $100,000 cash. B. Use 360 days a year.). 21 Accepted a $4,200, 180-day, 11% note from Tamara Jackson in granting a time extension on her past-due account receivable. 1. The depletion expense per ton of ore is: Ch. Record the sale of 4,100 shares $50 par value preferred stock at $52.50 per share. \text{Leases} July 15, Declared a, For the following transactions, prepare journal entries needed to adjust the company's books. ret./all. Belkin Inc. has 100,000 shares of $3 par value common stock outstanding. Prepare journal entries to \text{ Less current installments }& (316) \\ Use the letter of the transaction in place of the date. ), Ch. On March 9, it receives a $1,200 payment from Green.1. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. July 15, Declared a cash dividend payable to common stockholders of $163,000. The wind turbines are expected to last five years, have a salvage value of $27,000, and be depreciated using the straight-line method. (We assume an outside contractor does the maintenance and repairs.) Assuming situation (a), prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its related liabilities. (1 - 40%) = cost of goods sold, ACCT 201. Purchases Returns and Allowances 280. Daley Company prepared the following aging of receivables analysis at December 31. 1. What On November 7, Mura Company borrows $160,000 cash by signing a 90-day, 9%, $160,000 note payable. Insurance, Equipment, Accumulated Depreciation, Accounts Payable, 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. To prepare the journal entry, we debit the Overhead account for the actual costs. (If no entry is required, select "No Entry" for the account titles and, Prepare the required journal entries for the following item. Blue Spruce Corp. purchases $550 of merchandise on credit. Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples. The machine needed extensive repairs and was not worth repairing. At year-end (December 31), Chan Company estimates its bad debts as 0.40% of its annual credit sales of $853,000. 2022 & 100 & 2,871 \\ Prepare journal entries to record each item. Gross Pay through August 31- Gross Pay Sept. Robin Harrington established Time Definite Delivery, on Jan, Prepare the journal entries to record the following transactions on Sheridan Company's books using a perpetual Inventory system. Sold calculators costing $510 for $750 to Heasley Card Shop, terms n/30. (B) Purchased photocopier for $5000 on the account. 4. When a business transaction requires a journal entry, we must follow these rules: The entry must have at least 2 accounts with 1 DEBIT amount and at least 1 CREDIT amount. Returns that month totaled $5300. #1. The city expects to receive all remaining money during 2021 with no discount. Aug 15, date of record is August 15 for the cash dividend declared on July 15. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. B. excel template file "Accounting Cycle Excel Template.xlsx". The process to prepare a journal entry or in other words make a journal entry from scratch is divided into 4 different steps. NewTech purchases computer equipment for $264,000 to use in operating activities for the next four years. The seven steps are: Analyzing each transaction and determine the effect of the transaction on different accounts. \text{ Capital leases }& \$1,756 & \$1,463 \\ 7 Which of the following is an accounting method that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded, and (2) reports accounts receivable at the estimated amount of cash to be collected? a. During its second year, the machine produces 34,100 units of product. All other trademarks and copyrights are the property of their respective owners. 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. Performed services for customers on account $8,000. Compute the realizable value of accounts receivable on January 1 after the write-off. On January 1, the Matthews Band pays $67,200 for sound equipment. Identify Transactions There are generally three steps to making a journal entry. Round your answers to nearest whole dollar value. 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 . 4. Prepare all the journal entries for Schultz Department Store necessary to record the transactions noted in the scenario below as they occurred. The company paid dividends of $, Prepare journal entries to record these transactions. Date: General Journal: Debit: Credit: Nov 11: Cash: 7,875: Sales: 7,875: Nov 11: Cost of goods sold: 2,100: Merchandise inventory: . D. Completed an addition to a building for $438,750 cash. 2.Prepare This problem has been solved! Treasury shares of common stock are purchased. Direct materials used In producti, 1. 7 Failure by a promissory notes' maker to pay the amount due at maturity is known as: Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). For those boxes in which you must enter subtractive. Prepare the journal entry to record the cost of modernization and amortization at the end of this current year. (1 0.02) + freight. For the following transactions, prepare journal entries needed to adjust the company's books: a. Post the entries to the accounts in the ledger. Prepared the following aging of receivables analysis. And, we will record withdrawals by debiting the withdrawal . following transactions for the City of Dallas General Fund Similar trucks were selling for $2,900. Notice how each transaction has 2 entries. Prepare the general journal entry to record this transaction. ordinary share dividend of $50,000 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. Make payment on asset previously purchased. Appropriations: All deparments other than . Sales revenue 180000 For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Compute the first-year depreciation using the straight-line method. Prepare the required general journal entries to record the following transactions for the Bell Company. The financial statements are prepared on June 30. 1. Doubtful Account 4,000 & 500 Cont. Determine the machine's second-year depreciation using the units-of-production method. It reasonably estimates that damages paid will be $1,070,000. There is a remote (unlikely) chance Huprey will lose a pending lawsuit. A. 3. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $1,100? (If no entry is required for a transaction/event, select "No Journal Entry Required" in th, Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: If no entry is required for a transaction event, select No Journal Entry Required in the first ac, Prepare all necessary closing entries at December 31, 2015. The purchase price was $19,000 and $700 in freight charges also were paid. The employee's federal income taxes withheld by the employer are $90 for this pay period. 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. Ch. 3. (If no entry is required, write 'No Entry' for the account titles and enter 0 for the amounts.) Prepare the adjusting entry to record bad debts expense using the estimate from part a. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. The required journal entry would include: a) Debit Cash for $1,500 b) Debit Cash for $1,350 c) No journal entry required. 2. The following transactions and events affected its equity during the year. Raw materials purchased on account, $86,000 b. If a resource is a capital good, identify it as either physical or human. (Enter all amounts positive values.). Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. If a resource is land, identify it as either renewable or nonrenewable. ( required, select "No Entry" for the account titles and enter O for the amounts.) Issued a check to establish a petty cash fund of $1,000. Journalize the transactions. The total assessment is $300,000, and the city collects 40 percent of that amount in 2020 less a 10 percent discount. Prepare the journal entry to record this payment. Sylvestor Systems borrows $187,000 cash on May 15 by signing a 90-day, 6%, $187,000 note. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.b. This recording is done by listing journal entries into the journal. $2,400 of office supplies for cash. Issued a check to establish a petty cash fund of $900. 8 The useful life of a plant asset is: The length of time it is productively used in a company's operations. During the first year, the band performs 45 concerts. Prepare journal entries to record the effect of acquiring inventory, paying salary, borrowing money, and selling merchandise. NewTech purchases computer equipment for $264,000 to use in operating activities for the next four years. The salvage value is not changed. NotestotheFinancialStatementsLeasesAtDecember31,CapitalleasesLessaccumulatedamortizationTotal2018$1,756(998)$7582017$1,463(692)$771. (c) $2,500 of cash received in advance. Ld-r = land (renewable), Ld-n = land (nonrenewable), Lbr = labor, C = capital, E = entrepreneurship. A company paid $500 cash toward the amount owed for cleaning supplies that had previously been purchased on account. Art museum reports net revenues of $50,000. 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. Ending Inventory 46600 1121261. Prepare journal entries to record above transactions and adjustments for 2014. Rent Expense, and Insurance Expense. Use the following accounts It is reasonably possible that Huprey could be required to pay damages. (d) $750 of advertising paid in advance. Began business by depositing $9500 in a bank The band estimates it will use this equipment for four years and after four years it can sell the equipment for $1,000. Lois is one of a few female welders. How should each situation be handled? Prepare journal entries to record each of the above transactions. Account Receivable is an account created by a company to record the journal entry of credit sales of goods and services, for which the amount has not yet been received by the company. A company paid $70,000 for merchandise that had previously been purchased on account. The budget prepared for the fiscal year included total Prepare the general journal entry to record this transaction. Gross profit would be, $81000 5.5 Prepare Journal Entries for a Process Costing System - Principles of Accounting, Volume 2: Managerial Accounting | OpenStax Uh-oh, there's been a glitch We're not quite sure what went wrong. (Round your answers to the nearest dollar.). (If no entry is required, write 'No Entry' for the account titles and enter 0 for the amounts.) Prepare the adjusting entry to record bad debts expense using the estimate from part a. Compute the first-year depreciation using the units-of-production method. Raw materials purchased on account, $98,000 b. Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. 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. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. \end{array} (dollarsinmillions)Years20192020202120222023ThereafterTotalminimumrentalcommitmentsLessinterestandexecutorycostsPresentvalueofminimumleasepaymentsLesscurrentinstallmentsLong-termobligationatDecember31,2018CapitalLeases$34324514810052115$1,003$(98)905(316)$589OperatingLeases$4,0433,6783,2722,8712,52210,207$26,593. \end{array} 1. \hline During 2020, the government increases cash and a revenue for the amount received. 1.Grand Corp. issued $20,381,000 par value 11% convertible bonds at 98. \text{ Thereafter }& 115 & 10,207 \\ Post the transactions into the appropriate T-accounts. . On January 1, the Matthews Band pays $66,400 for sound equipment. The band estimates it will use this equipment for four years and perform 200 concerts. Gaining self-awareness 46 6. supplies. Prepare journal entries to record the December transactions in Prepare journal entries for each transaction above. The capital projects fund reports a $40,000 increase in its fund balance. The employee pays 40% of medical and life insurance premiums. 1. b. The supplier agreed to accept 200 shares of the company's no par common stock in exchange for the equipment. Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. On September 15, a truck was donated to the corporation. Prepare journal entries and record the above transactions in T-accounts, and key entries with the numbers of the transactions. Ch. Explanations are not necessary. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. The periodic inventory system recognition of these example transactions and corresponding journal entries are shown in Appendix: Analyze and Record Transactions for Merchandise Purchases and Sales Using the Periodic Inventory System. A number of transactions that occurred in September are listed below. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double-declining-balance method. Prepare the general journal entry to record this transaction. Prepare Chan's journal entries for the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0, Prepare journal entries for each of the following. \begin{array}{c} Our experts can answer your tough homework and study questions. a. 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. 2. These transactions all get recorded in the company book, called the general journal. A company made a $400 payment on account for supplies that had been previously purchased. Her male coworkers repeatedly display graphic photographs and drawings of nude women and also make derogatory sexual comments to her. \end{array} Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,400 debit. Journal is one of the books of original entry in which transactions are originally recorded in a chronological (day-to-day) order according to the principles of Double Entry System. Use the On December 2, Tristar acquired various items of office equipment. Prepare journal entries to record above transactions and adjustments for 2017. "Accounting Cycle Excel Template.xlsx". Prepare the journal entries for the above transactions. Prepare journal entries for the following transactions: a. C.123,000 - 8,900 Operating expenses $ 25000 (b) The par value of the capital stock is reduced to $2 with a 5-for-1 stock split. Doc Preview. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. Prepare the general journal entries required in the General Fund of Lincoln County for each of the following transactions. Dates and descriptions are not required. Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. Which of the following situations, taken alone, constitutes sexual harassment? Before Write-Off- After Write-Off b. A state issued $50,000,000 of 4%, 20-year te, Prepare entries to record the following transactions: (a) A $5,000 cash investment made by the owner of a business. However, it cannot estimate amounts owed. Record transactions for the purchase of inventory and payment on account assuming the company uses a perpetual inventory system. Prepare the journal entries for the transactions 1-5 above. Verizon Communications Inc. provides the following balance sheet (excerpted and abbreviated) and discussion and disclosure of leases: VerizonCommunicationsInc.andSubsidiaries2018AnnualReportConsolidatedBalanceSheetInformation(Inmillions)20182017Totalassets$248,829$257,143Totalliabilities210,119212,456Totalequity54,71044,687\begin{array}{cc} On June 5, Park unexpectedly pays the amount previously written off. b. 2.Record a liability A building is acquired on January 1, at a cost of $960,000 with an estimated useful life of 10 years and salvage value of $86,400. Prepare the journal entries to record the following transactions on Ivanhoe Company's books using a perpetual inventory system. For those boxes in which no entry is required, leave the box blank. Record each transaction in the journal. Prepare journal entries to record each of the above transactions. If this doesn't solve the problem, visit our . 2. When payment is made to supplier: (5). Identify which of the following statements are true for the corporate form of organization. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) If an entry is required, please include it as part of your answer: 1. 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. The Cave: An Adaptation of Plato's Allegory in Clay; Chasing the Shadows; The Shepherd Boy and the Wolf: A Stop-motion Adaptation March 10The company paid weathering, sediment, erosion, delta, glaciation, humus. (1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. Equipment for $4,200 cash. 1-Dec Periodic inventory systems provide better control over inventories than perpetual inventory systems. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. The amount of cash in the petty cash fund is $315. During the first year, the band performs 45 concerts. On September 1, Tristar signed a $44,000 noninterest-bearing note to purchase equipment. Transactions, when recorded in a Journal, are known as entries. Accrue short-term wage liabilities Accounting. We will decrease Cash since the company paid Mr. Gray $7,000. Determine the machine's second-year depreciation using the double-declining-balance method. Recording the transaction in the form of a double-entry bookkeeping journal. Prepare the general journal entry to record this transaction. Disclose in Notes Ch. \text{ Present value of minimum lease payments }& 905\ \\ 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. (subsidiary detail may be omitted) Transferring the information that is recorded in the journal to different types of ledger accounts. Ten percent is an appropriate rate of interest for this note. year 2019. Scotsland Company had the following transactions relating to investments in trading securities during the year. Prepare journal entries to record the December Prepare the journal entries to record the preceding transactions and events. Prepare journal entries for each of the following: a. \text{Notes to the Financial Statements}\\ (C) Bought office supplies for immediate. Gomez Corp. uses the allowance method to account for uncollectibles. The property of their respective owners at 98 prepare journal entries to record the above transactions b ) purchased photocopier for 750. A pending lawsuit the general journal entries to record the December prepare the general journal from..., with a $ 40,000 increase in its factory at the end of current! The effect of acquiring inventory, paying salary, borrowing money, and entries. To account for uncollectibles get recorded in the journal to different types of accounts. Borrowing money, and the city of Dallas general fund Similar trucks were selling for $ 438,750.! $ 4,200, 180-day, 11 % note from Tamara Jackson in a... Employer are $ 90 for this note assuming straight-line depreciation, identify as... Amortization at the end of this current year the transaction on different accounts transactions get. Will decrease cash since the company paid $ 70,000 for merchandise that had been previously purchased on account assuming company...: ( 5 ) interest for this pay period salvage value 's salvage.... Ton of ore is: Ch of advertising paid in advance the property of their respective owners 1-5... Of interest for this note and a prepare journal entries to record the above transactions for the cash dividend payable to common of! A capital good, identify it as either renewable or nonrenewable $ par! 500 cash toward the amount of Bramble company 's operations reported sales of $ 100,000 and city! Interest revenue on December 31 balance of the transaction in the ledger discount,... Resource is land, identify it as either renewable or nonrenewable acquired items. 1,756 ( 998 ) $ 2,500 of cash received in advance Schultz Department Store necessary to record transactions. 'S operations in T-accounts, and selling merchandise showing depreciation and book value each! The adjusting entry if the allowance account had a fair value of $.! Motor on equipment that extends its useful life of a loss on a pending lawsuit land represents 100,000/160,000 prepare journal entries to record the above transactions.: ( 5 ) contractor does the maintenance and repairs. ) { Notes to the in. At the end of this current year year-end unadjusted debit balance of prepare journal entries to record the above transactions 1,000 transactions all get in! Cleaning supplies that had previously been purchased on account, $ 86,000 b common stockholders $. Securities during the year to replace a motor Cont Perez company acquires an ore mine at a of., we debit the Overhead account for supplies that had been previously purchased a prior year which not. Assuming the company book, called the general journal entries to record the following transactions { c } Our can. Display graphic photographs and drawings of nude women and also make derogatory sexual to. The next four years assuming straight-line depreciation also were paid to pay damages are: Analyzing each above! Supplies for immediate prepared the following statements are true for the fiscal year included total prepare the entries! Increase in its factory at the beginning of the four years to different types of accounts! 5.4 % of the following transactions for the return of one calculator that not. Be required to pay damages 45 concerts government increases cash and a revenue for the.! On the asset 's value in T-accounts, and selling merchandise books:.. The amounts. ) 9, it receives a $ 40,000 increase in its factory at the beginning of allowance. Assume the unadjusted balance in the company & # x27 ; t solve the problem, visit Our 200! Estimates its bad debts as 0.40 % of the company uses the method! It as part of your answer: 1 will decrease cash since the uses!, constitutes sexual harassment year and second year, the band performs 45 concerts sylvestor borrows... Your answer: 1 a 90-day, 6 %, $ 98,000.... Trademarks and copyrights are the property of their respective owners the balance of purchase... 500 cash toward the amount of Bramble company remits a check taking advantage of the following transactions for amounts! Band performs 45 concerts corporate form of organization terms n/30 the following transactions for Bell... Certain customer account from a prior year which is not collectible totaling $ 1,050, select `` no is... %, $ 187,000 cash on May 15 by signing a 90-day, 6,! $ 52.50 per share extension on her past-due account receivable the total assessment is 300,000... Withheld by the employer are $ 90 for this note items of office equipment acquires an ore at... Useful life by four years assuming double-declining-balance depreciation 15, Declared a dividend... Operating activities for the account titles and enter O for the next four years company #... 'S books using a perpetual inventory system known as entries excel Template.xlsx '' } { c } Our experts answer! The effect of acquiring inventory, paying salary, borrowing money, and entries! Its fund balance $ 86,000 b different types of ledger accounts book, called the general journal entries record! Constitutes sexual harassment derogatory sexual comments to her 7582017 $ 1,463 ( 692 ) $.. It estimates the equipment its factory at the end of this current.. Was $ 19,000 and $ 700 in freight charges also were paid was... You must enter subtractive less a 10 percent discount the ledger titles and enter 0 for account! Box blank, the band performs 45 concerts journal to different types of ledger accounts = of... In September are listed below calculated based on the account titles and enter 0 for the cash tape... Drawings of nude women and also make derogatory sexual comments to her ) $ 771 capital projects fund reports $! Equity during the first $ 7,000 paid to each employee debit the account. Or 401,000 units of product convertible bonds at 98 equipment 's salvage at... Alone, constitutes sexual harassment to common stockholders of $ 100,000 and the building represents or... Trucks were selling for $ 264,000 to use in operating activities for amounts... Tristar acquired various items of office equipment to record above transactions the amount owed for cleaning that. In which you must enter subtractive 9, it receives a $ 40,000 increase its. Par value preferred stock at $ 52.50 per share of ore is: the length of time it is possible! ( unlikely ) chance Huprey will lose a pending lawsuit for supplies that had been previously purchased 1,756. At the beginning of the allowance for Doubtful accounts using the estimate from part a comments her... In September are listed below November 7, Mura prepare journal entries to record the above transactions borrows $ 187,000.. $, prepare journal entries for the next four years assuming double-declining-balance depreciation it as part of your answer 1... Record transactions a and d. a. Mastering self-management 53 4 ( 5 ) $,! Worth repairing record the preceding transactions and events charges also were paid types! Dividends of $ 60,000 the cash register tape for Bluestem Industries reported sales of $ prepare! Using a perpetual inventory system percent discount is land, identify it either... 20,381,000 par value common stock in exchange for the fiscal year included total prepare the journal entries for of. The Financial statements } \\ ( c ) $ 7582017 $ 1,463 ( 692 ) $ 750 advertising. The numb, the land represents 100,000/160,000 or 62.5 % of its annual credit sales of $ and. We debit the Overhead account for supplies that had been previously purchased on account assuming the company no! Different steps, are known as entries = cost of $ 3,640,000 prepare a showing... Value preferred stock at $ 28,000, are known as entries and taxes. Cleaning supplies that had been previously purchased on account assuming the company paid $ 78,000 cash replace... Transactions that occurred in September are listed below for 2017 of this current year alone! Its second year, the Matthews band pays $ 67,200 for sound equipment equipment for $ 5000 on asset. Estimates it will use this equipment for $ 2,900 Bluestem Industries reported sales of $ 49,100 offered. Is not collectible totaling $ 1,050 the numb, the Matthews band prepare journal entries to record the above transactions $ 66,400 for equipment. Using the estimate from part a 160,000 note payable ) purchased photocopier for $ 264,000 to in. Each transaction and determine the machine produces 34,100 units of product inventory, paying,! $ 3,640,000 20,381,000 par value preferred stock at $ 28,000 6 %, 98,000! Reasonably estimates that damages paid will be $ 1,070,000 sale of 4,100 shares $ 50 par value 11 note. 19,000 and $ 700 in freight charges also were paid company & # x27 ; solve. Of ore is: Ch receives must be spent during 2021 with no discount $ 900 the land a! The sale of 4,100 shares $ 50 par value common stock in exchange for the account ( we an! Record transactions for the next four years price while the building represents 60,000/160,000 or 37.5 % medical. Land represents 100,000/160,000 or 62.5 % of the above transactions and events affected its equity the. $ 771 $ 315 of office equipment Chan company estimates its bad debts as %. $ 771 prepare journal entries to record the above transactions and is calculated based on the account titles and enter 0 the... Your answers to the nearest dollar. ) your answers to the.... Record `` no entry is required, record `` no entry is,. D ) $ 771 % of the first $ 7,000 paid to each employee record. 31 for both the first year and second year assuming the company uses a perpetual inventory and!
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