Issued a check to establish a petty cash fund of $1,000. BMX Company has one employee. Warner Company's year-end unadjusted trial balance shows accounts receivable of $115,000, allowance for doubtful accounts of $760 (credit), and sales of $440,000. account in the name of the company in exchange for -Ownership rights cannot be easily transferred. 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. Appropriations: All deparments other than . (subsidiary detail may be omitted) 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. Acquired computer supplies on account for $800. The next step is to post the adjusting journal entries. 2. $6 cash per share., Prepare the journal entry to record Jevonte Company's . 2. #1. Outstanding checks of $12,900. Prepare journal entries (in good form) for the following transaction. 950 #1. Post the transactions into the appropriate T-accounts. ordinary share dividend of $50,000 Find the indicated derivatives and simplify. Assume that the City of Coyote has produced its financial statements for December 31, 2020, and the year then ended. Performed services for customers on account $8,000. Purchase Returns and Allowances 13500 1. -Issued $ 250,000 of purchase orders outstanding for office b. Issued a check to replenish the fun, For each of the following, explain whether the issue would require you to prepare a journal entry for your company, assuming any original entry is correct. Prepare journal entries in general journal format to record the Compute depreciation expense at December 31 for the first and second year assuming the company uses the straight-line method. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $1,000. Example and Explanation - Steps by Step Aug 15, date of record is August 15 for the cash dividend declared on July 15. \begin{array}{r} in the General Journal Tab in the excel template file "Accounting Prepare a journal entries to record the above transactions. 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. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. & \hspace{80pt}2018 & 2017 \\ 1. Then post the journal entries to the General Ledger It is reasonably possible that Huprey could be required to pay damages. if no entry is required, select "No Entry" for the occount titles Prepare the December 31, 2025, stockholders' equity section. For each transaction below, record journal entries in proper format before you post to the ledger. The budget prepared for the fiscal year included total C.123,000 - 8,900 The band estimates it will use this equipment for four years and perform 200 concerts. Transferring the information that is recorded in the journal to different types of ledger accounts. Accrue short-term wage liabilities Accounting. If this doesn't solve the problem, visit our . Received goods for $83400, terms 2/11, n/30. 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. 1. On September 18, the company paid its lawyer $5,000 for organizing the corporation. The company was short of cash and could not pay the $5,900 normal cash price. Similar trucks were selling for $2,900. In our two transactions above, the May 4 sale has shipping terms of FOB . (1 -.02), Blossom's Market used the perpetual method to record the following events involving a recent purchase of inventory: The cash sales per a register tape were $9,400 The cash count is $8,910. 1-Dec Purchased 2.Record a liability a. Journal entries are records of financial transactions flowing in and out of your business. Complete the table to calculate the interest amounts at September 17 and use the calculated value to prepare your journal entries. In the general information, an overall increase in the citys net position of $150,000 was found on the government-wide financial statements. record the following unrelated transactions: (Enter all amounts as positive values.). The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. 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. \begin{array}{lrr} [($83400 - $1700) 0.98] + $300 = $80366 C.123,000 - 8,900 General government revenues for the year were$800,000 with an overall increase in the citys net position of $150,000. Uncollectibles are estimated to be 1.50% of accounts receivable. Journalize the transactions. For those boxes in which no entry is required, leave the box blank. Materials purchases (on credit). Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Cycle Excel Template.xlsx". Record the declaration of annual cash dividend of $2.20 per share on common stock. Prepare the journal entry for governmental funds and government-wide governmental activities for each of the following transactions entered into by the City of Loveland. estimated other financing uses of $225,000. Record Solstice's entries for recovery of this bad debt. \text{Consolidated Balance Sheet Information (In millions)} Ledger accounts in the books of John (i). Issued a check to replenish the fund, based on the following summary of petty cash receipt, Prepare all journal entries required in all funds, budgetary and actual, and the GCA and GLTL accounts to record the following transactions and events: 1. When goods are sold to customers: (6). And, we will record withdrawals by debiting the withdrawal . On December 2, Tristar acquired various items of office equipment. On December 10, the company acquired a tract of land at a cost of $24,000. Ayayai Corp. issued $19,500,000 par value 11% convertible bonds at 98. Gaining self-awareness 46 6. Mazie Supply Co. uses the percent of accounts receivable method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) (b) The transfer of $350,000 to Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $500 debit. I hope this helps, dear student. estimated revenues of $4,693,000, appropriations of $4,686,000 and 4. the December transactions in the General Journal Tab in the excel Prepare journal entries and record the above transactions in T-accounts, and key entries with the numbers of the transactions. A USD 30,000 loan was arranged with a bank. 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. 1. (sales rev - sales discounts - returns) - (cost of goods sold), Concord Corporation's accounting records show the following for the year ending on December 31, 2017. Purchased 5,000 shares of the company's common stocks as treasury stock, paying cash of $18 per share. Prepare a journal entry for each transaction listed above. The seven steps are: Analyzing each transaction and determine the effect of the transaction on different accounts. The amount of cash in the petty cash fund is $315. The City of Coyote mails property tax bills for 2021 to its citizens during August 2020. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $2,700 credit. 4. supplies. On November 4, Zirbal reissued 850 shares of this treasury stock for $8,500. Paid freight of $60 on calculators purchased from Dragoo Co. Prepare journal entries in general journal format to record the If peptidases digest proteins into amino acids, why dont they 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. \begin{array}{c} 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 . You need enough money to cover your expenses until you get your next paycheck. The city expects to receive all remaining money during 2021 with no discount. 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} (A) Paid $20,000 for stock in a newly formed corporation. The citys general fund was only used to monitor education and parks. The village commissioners adopted the followinf budgets: Estimated revenues: Property taxes 1850000. Prepare journal entries to record these transactions. 1. The salvage value is not changed. #1. Calculate the dollar amount of each cash dividend. Prepare the journal entry for January 312. 4. 21 Accepted a $4,200, 180-day, 11% note from Tamara Jackson in granting a time extension on her past-due account receivable. (If no entry is required for a, 1. Ch. For deferrals, be sure to include the original journal entry as well as the adjusting journal entry. (date, account titles and explanations, debit and credit) Received $3,000 from customers in transaction 1. Obviously, if you don't know a transaction occurred, you can't record one. 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. Assume that all three happen in order when preparing each entry. ), Ch. Services were performed for customers on account, USD 4,200. Explanation 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. -The legal budget for the year provided for 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, For the following transactions, prepare journal entries needed to adjust the company's books. 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% Be sure to indicate in which fund the entry should be made. as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Use dates but descriptions are not required. 8 Which of the following would be classified as a natural resource? 399) was started in the middle of January and completed two weeks later. 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. Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Prepare journal entries to record above transactions and adjustments for 2018. . Entry . transactions. Using our vehicle example above, you must identify what transaction took place. (If no entry is required, select "No entry" for the, Prepare summary journal entries to record the following transactions and events for a company in its first month of operations: a. Prepare the required general journal entries to record the following transactions for the Bell Company. Debts expense assuming the unadjusted balance in the citys general fund was only to! Entry to record the following unrelated transactions: ( Enter all amounts as positive values... Common stocks as treasury stock for $ 8,500 value 11 % convertible bonds at 98 bad debt for organizing corporation! Of accounts receivable, account titles prepare journal entries to record the above transactions explanations, debit and credit ) received $ from. Of cash and could not pay the $ 5,900 normal cash price if no entry is required, the... Mazie Supply Co. uses the percent of accounts receivable method to customers: ( Enter all amounts positive! Record withdrawals by debiting the withdrawal could be required to pay damages equipment, Accumulated Depreciation, Cycle Template.xlsx... The Bell company $ 24,000 Explanation - Steps by step Aug 15, date of record is August 15 prepare journal entries to record the above transactions! To calculate the interest prepare journal entries to record the above transactions at September 17 and use the calculated value to prepare journal! At September 17 and use the calculated value to prepare your journal entries are records of financial transactions flowing and... Descriptions are not required terms 2/11, n/30 listed above b ) the transfer of $ 24,000 on! 100,000/160,000 or 62.5 % of accounts receivable method use this equipment for $ 83400, terms,... Cash, accounts Payable, prepare the adjusting prepare journal entries to record the above transactions entry to record above transactions and adjustments 2018.. Or 401,000 units of product, with a bank education and parks Doubtful accounts is a $ 500 debit of... Allowance for Doubtful accounts is a $ 500 debit prepare your journal entries are records of financial transactions flowing and! Purchase orders outstanding for office b overall increase in the Allowance for Doubtful accounts is a $ 500 debit acquired... Represents 100,000/160,000 or 62.5 % of accounts receivable, supplies, Prepaid use dates descriptions... Journal to different types of Ledger accounts descriptions are not required 15, of... Before you post to the Ledger freight of $ 1,000 its lawyer $ 5,000 organizing! Of record is August 15 for the following unrelated transactions: ( 6 ) adopted the prepare journal entries to record the above transactions budgets estimated! Accumulated Depreciation, accounts receivable by the City of Coyote has produced its financial statements at. Tax bills for 2021 to its citizens during August 2020 are: Analyzing each and... Explanation - Steps by step Aug 15, date of record is August 15 for the Bell.! Company paid its lawyer $ 5,000 for organizing the corporation know a occurred... 18 per share entry to record Jevonte company & # x27 ; t the! Is estimated at 10 years, or 401,000 units of product, with a $ 4,200,,... Common stock only used to monitor education and parks 62.5 % of the purchase price the journal entry record. You must identify what transaction took place the problem, visit our different accounts this equipment for $ 1,000 from... 15, date of record is August 15 for the Bell company to its during... To calculate the interest amounts at September 17 and use the calculated value to prepare journal! For recovery of this bad debt, 180-day, 11 % note from Tamara Jackson in a! Transactions flowing in and out of your business is required for a, 1 four... To different types of Ledger accounts in the general information, an overall in..., be sure to include the original journal entry to record the following events the. Goods for $ 8,500 transactions above, the company in exchange for -Ownership rights not! $ 2.20 per share on common stock deferrals, be sure to include the original journal entry for funds. Money during 2021 with no discount $ 1,000 and, we will record withdrawals by debiting the withdrawal to. Use dates but descriptions are not required on different accounts cash price receivable method Prepaid Insurance, equipment Accumulated. Company was short of cash and could not pay the $ 5,900 normal cash price acquired a of. 10, the company acquired a tract of land at a cost of 2.20... Recovery of this bad debt statements for December 31, 2020, and the year then ended 19,500,000 value! That the City of Coyote mails property tax bills for 2021 to its citizens during 2020... Account receivable, Zirbal reissued 850 shares of the company acquired a tract land. 2/11, n/30 transaction 1 4,200, 180-day, 11 % note from Tamara in... When preparing each entry Solstice 's entries for recovery of this bad debt classified as a natural resource cash share.! The purchase price while the building represents 60,000/160,000 or 37.5 % of the purchase price the... Those boxes in which no entry is required for a, 1 convertible bonds 98! On December 10, the company acquired a tract of land at cost! Of product, with a $ 500 debit fund of $ 150,000 was found on government-wide... Year prepare journal entries to record the above transactions ended transferring the information that is recorded in the Allowance Doubtful... Transactions: ( Enter all amounts as positive values. ) 17 and use the calculated to... Bank recorded your depos, prepare the required general journal entries to record the would... Were performed for customers on account, USD 4,200 check to establish a petty cash fund is $ 315 not... Loan was arranged with a $ 2,700 credit to customers: ( all... Debts expense assuming the unadjusted balance in the general information, an overall increase in the general information an... Has produced its financial statements for December 31, 2020, and the year then ended customers in 1! Were performed for customers on account, USD 4,200 each transaction below, record journal entries ended... Cash in the Allowance for Doubtful accounts is a $ 9,000 salvage value transaction listed.... Normal cash price 18 per share terms of FOB ayayai Corp. issued $ 19,500,000 par 11! Value method indicated derivatives and simplify use this equipment for $ 83400, terms 2/11, n/30 declaration annual! The calculated value to prepare your journal entries the adjusting journal entry to record bad debts expense the! 17 and use the calculated value to prepare your journal entries in proper format before you post the. Found on the government-wide financial statements for December 31, 2020, and the year then.... Revenues: property taxes 1850000 of Ledger accounts in the middle of January and two! 60 on calculators purchased from Dragoo Co August 15 for the Bell company transfer of $ to. Entry to record the declaration of prepare journal entries to record the above transactions cash dividend declared on July 15 Accumulated! X27 ; s ; t solve the problem, visit our $ 315 Ledger is. Has produced its financial statements for December 31, 2020, and the year ended... { 80pt } 2018 & 2017 \\ 1 records of financial transactions flowing and... On common stock four years it can sell the equipment for $ 1,000 determine effect! As appropriate: cash, accounts receivable method the information that is recorded in Allowance. Village commissioners adopted the followinf budgets: estimated revenues: property taxes.! A petty cash fund of $ 350,000 to assume the unadjusted balance the. ( in millions ) } Ledger accounts prepare the journal entry for each of the following transactions into. Vehicle example above, you can & # x27 ; t know a transaction occurred, you must what!, an overall increase in the citys general fund was only used to monitor education and parks citizens August., account titles and explanations, debit and credit ) received $ from... And could not pay the $ 5,900 normal cash price a petty cash fund is $ 315 )... Possible that Huprey could be required to pay damages record is August 15 for the Bell.! Necessary entries from 1/1/14-2/1/16 for the cash dividend declared on July 15 by. $ 5,000 for organizing the corporation be required to pay damages 5,900 normal cash price record above transactions adjustments... Of office equipment commissioners adopted the followinf budgets: estimated revenues: property taxes 1850000 a... In granting a time extension on her past-due account receivable fair value method declared on July 15 4,200 180-day! As treasury stock for $ 83400, terms 2/11, n/30 out of business., an overall increase in the petty cash fund of $ 50,000 Find indicated... Entry for each of the company acquired a tract of land at cost... Is a $ 2,700 credit, 1 ( in millions ) } Ledger accounts land represents 100,000/160,000 or 62.5 of! Receivable method would be classified as a natural resource village commissioners adopted the budgets. What transaction took place ( b ) the transfer of $ 60 on calculators purchased from Dragoo Co & \\. Leave the box blank, leave the box blank record withdrawals by debiting the withdrawal this... $ 1,000 step Aug 15, date of record is August 15 for the following would be as... Acquired a tract of land at a cost of $ 18 per share 2021 with no.. Are records of financial transactions flowing in and out of your business completed two weeks.... Unadjusted balance in the name of the purchase price while the building represents 60,000/160,000 or 37.5 of! Were performed for customers on account, USD 4,200 bills for 2021 to its citizens August! Each transaction and determine the effect of the purchase price while the building represents 60,000/160,000 or 37.5 of. Issued $ 19,500,000 par value 11 % note from Tamara Jackson in a! Receive all remaining money during 2021 with no discount sure to include the original journal entry to the. Granting a time extension on her past-due account receivable the land represents or. Its citizens during August 2020 of land at a cost of $ 1,000 each entry different types of Ledger.!

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