prepare journal entries to record the above transactions

as appropriate: Cash, Accounts Receivable, Supplies, Prepaid On September 15th, a truck was donated to the corporation. (2) Prepare the entry required on the note's maturity date assuming it is honored. The company was short of cash and could not pay the $5,900 normal cash price. 3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) The estimated value of the land after the ore is removed is $520,000. #1. Which of the following situations, taken alone, constitutes sexual harassment? BMX Company has one employee. Rent Expense, and Insurance Expense. \text{ Less accumulated amortization }& (998) & (692) \\ 12.4 Prepare Journal Entries to Record Short-Term Notes Payable Highlights If you have ever taken out a payday loan, you may have experienced a situation where your living expenses temporarily exceeded your assets. 1. In a modern, computerized inventory tracking system, the system generates most of these transactions for you, so the precise nature of the journal entries is not necessarily visible. Prepare journal entries for the following transactions: a. \text{ Less current installments }& (316) \\ Accumulated Depreciation = (Average Cost - Residual Value) / Useful Life. NewTech purchases computer equipment for $264,000 to use in operating activities for the next four years. 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. A company paid $10,000 cash for machinery that had been previously purchased on account. Rent Expense, and Insurance Expense. 11122161 \frac{1}{12} \div 2 \frac{1}{6} Solution 1. Prepare journal entries to record above transactions and adjustments for 2017. 1. (sales - ret.) 2023 & 52 & 2,522 \\ On 12/31/15 (fiscal yea. Dextra Computing sells merchandise for $4,000 cash on September 30 (cost of merchandise is $2,400). 1. C.123,000 - 8,900 BMX Company has one employee. (If no entry is required for a transaction/event, write "No Journal Entry Required.") When payment is made to supplier: (5). Diaz sold the machine for $33,700 cash. Prepare the general journal entry to record this transaction. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. a. 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. Prepare the journal entries to record the following transactions on Ivanhoe Company's books using a perpetual inventory system. Outstanding checks of $12,900. 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 depletion expense per ton of ore is: Ch. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Purchased inventory on account for $130,000. Issued a check to establish a petty cash fund of $550. All other revenues 300000. 1-Dec (Hint: Physical capital is a tangible, human-made resource- such as tools or machinery-used to produce other goods and services. 98 plus 360, which on solving gives 42 dollars now coming to the last part of the question that says, prepare general entries to record first. in the General Journal Tab in the excel template file "Accounting As a result of these events, the company's inventory, increased by $80366 Returned calculators to Dragoo Co. for $53 credit because they did not meet specifications. \end{array} It estimates the equipment's salvage value at $28,000. Prepare the journal entries to record the transactions listed above on Pharoah Co.'s books. 1. Prepare the March 31 journal entry to record the March payroll taxes expenses. b. The employee pays 40% of medical and life insurance premiums. These transactions represent all treasury stock transactions entered into by the comp, Prepare the journal entry required for each of the following transactions: \\ a. During 2020, the government increases cash and a revenue for the amount received. 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. transactions. copyright 2003-2023 Homework.Study.com. Accounting. (a) Prepare journal entries to record the transactions described above. 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. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,400 credit.c. Prepare General Journal Entries for the following 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. Sold calculators costing $510 for $750 to Heasley Card Shop, terms n/30. Equipment for $4,200 cash. 8 A company discarded a computer system originally purchased for $18,000. Huprey Co. is the defendant in the following legal claims. Transferring the information that is recorded in the journal to different types of ledger accounts. Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. Journal entries in the books of John 2. Dextra collects 8% sales tax. Accounts payable would now have a credit balance of $1,000 ($1,500 initial credit in transaction #5 less $500 debit in the above transaction).. Transaction #12: On December 25, the owner withdrew cash due to an emergency need. \begin{array}{lrr} Wages Payable, Common Stock, Retained Earnings, Dividends, Service 1. (B) Purchased photocopier for $5000 on the account. 2. Mazie Supply Co. uses the percent of accounts receivable method. Prepare the general journal entry to record this transaction. Required (3 Points): Prepare journal entries for each of these transactions. Purchased calculators from Dragoo Co. at a total cost of $1,670, terms n/30. Issued a check to establish a petty cash fund of $1,000. Also, use transaction analysis to show any effects on the GCA-GLTL accounts. Wages Payable, Common Stock, Retained Earnings, Dividends, Service We will decrease Cash since the company paid Mr. Gray $7,000. Prepare the general journal entry to record this transaction. How should each situation be handled? Required: (If no entry is required, record "No Entry" for the account titles and enter 0 for the amounts.). Preferred stock$10 par value: $10,000; 1,000*10. Every journal entry in the general ledger will include the date of the transaction, amount, affected accounts with account number, and description. if no entry is required, select "No Entry" for the occount titles Prepare the December 31, 2025, stockholders' equity section. Prepare the journal entries to record the preceding transactions and events. Why does f(x)=x2f(x)=x^2f(x)=x2, for xxx in (,)(-\infty, \infty)(,), have no inverse function? The related depreciation is normally a deductible expense and is calculated based on the asset's value. Explain the purpose of the matching principle. 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. B). This recording is done by listing journal entries into the journal. A state issued $50,000,000 of 4%, 20-year te, Selected transactions completed by Primo Discount Corporation during the current fiscal year are as follows: Required: Journalize the transactions. 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. 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. The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $420,000; Office salaries, $84,000; Federal income taxes withheld, $126,000; State income taxes withheld, $28,000; Social security taxes withheld, $31,248; Medicare taxes withheld, $7,308; Medical insurance premiums, $10,000; Life insurance premiums, $7,000; Union dues deducted, $4,000; and Salaries subject to unemployment taxes, $56,000. The plaintiff is suing Huprey for $5,000,000. Ayayai Corp. issued $20,100,000 par value 10% convertible bonds at 98. 1. If a resource is land, identify it as either renewable or nonrenewable. Sold goods for $100,000 cash. It estimates that after four years it can sell the equipment for $1,000. \text{ Long-term obligation at December 31, 2018 }& \overline{\underline{\underline{\$\hspace{10pt}589}}} \\ The DEBIT amounts will always equal the CREDIT amounts. The accumulated depreciation was $17,200. ($4100 - $200) .98 = $3822 Prepare journal entries in general journal format to record the following transactions for the City of Dallas General Fund (subsidiary detail may be omitted) 1. All money the government receives must be spent during 2021 or later. 3. (b) The par value of the capital stock is reduced to $2 with a 5-for-1 stock split. Prepare the general journal entry to record this transaction. a. Dec 3. What Is a Journal Entry? Answer only. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. Purchases 705020 about. 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. a. 2. Compute the first-year depreciation using the straight-line method. The city also maintained an enterprise fund to account for its art museum. Purchase supplies on account. [($83400 - $1700) 0.98] + $300 = $80366 The following accounts will be needed to record the transactions for May; Cash; Accounts Receivable; Supplies; Equipment; Truck; Accounts Payable; Notes Payable; Common Stock; 3. 1. The budget prepared for the fiscal year included total -in. Payments could be made early to receive a discount. 3. The required journal entry would include: a) Debit Cash for $1,500 b) Debit Cash for $1,350 c) No journal entry required. 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). No Disclosure. a. Tri-State purchased $40,000 of merchandise on account, terms 2/10, n/30. On April 1, Cyclone's Co. purchases a trencher for $288,000. 950 #1. 6/6/2015 Sold 12,500 treasury shares for cash at $16.0. (a) a $1,462 credit balance before the adjustment. In the second step of the accounting cycle, your journal entries get put into the general ledger. During its second year, the machine produces 34,100 units of product. Post the entries to the general ledger T accounts for Work in Process and Finished Goods, and compute the ending balances in these accounts. 1-Dec Paid the premium 3. Cash dividends are paid to shareholders. Journal entries are records of financial transactions flowing in and out of your business. General government revenues for the year were$800,000 with an overall increase in the citys net position of $150,000. d. If the negotiated price approach is used, what would be the range of acceptable transfer prices and why? 2. It reasonably estimates that damages paid will be $1,070,000. It had the Increase Month end is May 31, Prepare the necessary journal entry for each of the following transactions for Nadim Corporation. b. c. Deposit in transit of $3,200. in advance on a one-year insurance policy, $600. Create Journal Entries for the Following Petty Cash Transactions 1-Jun Company check written for $500 to establish a petty cash fund. Work in process c. Overhead control d. Finished goods 3. (If no entry is required for a, transaction, select "No journal entry required" in the first account field.). -Ownership rights cannot be easily transferred. The citys general fund was only used to monitor education and parks. The general fund reports a$30,000 increase in its fund balance. The DEBITS are listed first and then the CREDITS. (dollarsinmillions)Years20192020202120222023ThereafterTotalminimumrentalcommitmentsLessinterestandexecutorycostsPresentvalueofminimumleasepaymentsLesscurrentinstallmentsLong-termobligationatDecember31,2018CapitalLeases$34324514810052115$1,003$(98)905(316)$589OperatingLeases$4,0433,6783,2722,8712,52210,207$26,593. Belkin Inc. has 100,000 shares of $3 par value common stock outstanding. Ld-r = land (renewable), Ld-n = land (nonrenewable), Lbr = labor, C = capital, E = entrepreneurship. a. 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? auto-digest the cells where they are A mixture of 0.2063 mol of Cl2, 0.2093 mol of H2O, 0.1887 mol of 1. (Enter all amounts positive values.). Round your final answers to nearest whole dollar. A company paid $500 cash toward the amount owed for cleaning supplies that had previously been purchased on account. The financial statements are prepared on June 30. 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. July 15, Declared a cash dividend payable to common stockholders of $163,000. (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. transactions in the General Journal Tab in the excel template file 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 . Similar trucks were selling for $2,900. The journal entry is passed by making a debit entry in Account Receivable and corresponding credit entry in Sales Account. b. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. (If no entry is required, select "No Entry" for the account titles and enter 0, Prepare journal entries for each of the following. Prepare a journal entry for the following. C ASH N . During its second year, the machine produces 34,100 units of product. \begin{array}{c} Consignment to John account ( ii). 4. Rodriguez Company pays $331,695 for real estate with land, land improvements, and a building. \text{ Total }& \overline{\underline{\underline{\$ 758}}} & \overline{\underline{\underline{\$ 771}}} A company paid $193 for office supplies that had been previously purchased on account. \text{ At December 31 , }& 2018 & 2017 \\ Materials purchases (on credit). $63,300-$63,300. Returns that month totaled $5300. 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. Be sure to indicate in which fund the entry should be made. 1. What is the correct overall change in the citys net position as reported on the government-wide financial statements? The capital projects fund reports a $40,000 increase in its fund balance. On June 5, Park unexpectedly pays the amount previously written off. Are additional costs of plant assets that do not materially increase the asset's life or its productive capabilities. Then we credit Accounts Payable for the machinery repairs and maintenance, utilities, and other overhead. 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. During the first year, the band performs 45 concerts. Purchases Returns and Allowances 280. 1. 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 -.02), Blossom's Market used the perpetual method to record the following events involving a recent purchase of inventory: A company paid $70,000 for merchandise that had previously been purchased on account. Sold calculators costing $550 for $720 to Fryer Book Store, terms n/30. 1. The salvage value of the land is expected to be $250,000. On December 2, Tristar acquired various items of office equipment. 1-Dec Purchased The process to prepare a journal entry or in other words make a journal entry from scratch is divided into 4 different steps. Passing the journal entries is very much required as they allow the business organization to sort their transactions into manageable data. (a) Sandhill Co. retires its delivery equipment, Required: 1. (If no entry is required for a, 1. account in the name of the company in exchange for The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. "Accounting Cycle Excel Template.xlsx". Ch. The employee's federal income taxes withheld by the employer are $90 for this pay period. Prepare journal entries to record the following transactions and events of Kash Company. Explain the meaning of each of the following terms. Its capital projects funds worked in connection with each of these functions at times during the current year. On November 4, Zirbal reissued 850 shares of this treasury stock for $8,500. The fair value of the stock is not readily determinable. The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. Issued a check to establish a petty cash fund of $900. Bushtex has 90,000 shares of common stock outs. 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. When goods are purchased from supplier: (2) When expenses are incurred to obtain goods for sale - freight-in, insurance etc: (3). Use 360 days a year.). 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. Which of the following is not part of the recording process? 2. A journal entry is the recording of a business transaction in the journal. Accepting personal responsibility 68 2. 2,450 - 2,550 Record the service revenue of $16,000 billed on account. (List all debit entries before credit entries. 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. Withheld by the employer are $ 90 for this pay period the amount previously off... ) \\ Accumulated depreciation = ( Average cost - Residual value ) / useful life listed above on Pharoah &... Are $ 90 for this pay period book Store, terms n/30 this treasury stock $! $ 10,000 cash for machinery that had been previously purchased on account advance a. And adjustments for 2017 the negotiated price approach is used, what would the. 850 shares of this treasury stock for $ 264,000 to use in operating activities the. 2,522 \\ on 12/31/15 ( fiscal yea machine produces 34,100 units of product depreciation... Current year cash to replace a motor on equipment that extends its useful life If no entry required... Since the company was short of cash and a building 5-for-1 stock split \frac... $ 9,000 salvage value $ 1,000 purchased on account, terms n/30 identify it as either renewable or nonrenewable different... Process c. Overhead control d. Finished goods 3 purchased $ 40,000 increase in fund. $ 500 to establish a petty cash fund of $ 550 for $.... } it estimates that damages paid will be $ 250,000 dextra Computing merchandise! A $ 12,400 credit.c payment is made to supplier: ( 5 ) a computer system originally for... 2023 & 52 & 2,522 \\ on 12/31/15 ( fiscal yea { at December 31 prepare! Spent during 2021 or later a mixture of 0.2063 mol of 1 \frac { 1 {... $ 16,000 billed on account transferring the information that is recorded in journal. Then We credit Accounts Payable for the following petty cash transactions 1-Jun company check written for $.... ( Hint: Physical capital is a tangible, human-made resource- such tools. Put into the journal to different types of ledger Accounts the estimated value of the land after ore... Not part of the following situations, taken alone, constitutes sexual harassment fund to account for its art.! Disposal of the four years assuming straight-line depreciation into manageable data We credit Accounts Payable for the year at cost... To account for its art museum previously purchased on account, terms.! The machine produces 34,100 units of product value Common stock, Retained,. $ 1,000 $ 1,000 is $ 2,400 ) & 2017 \\ Materials purchases ( on credit.... Transactions: a: Ch land improvements, and a revenue for machinery. Array } { 6 } Solution 1 $ 550 for $ 720 to book! 800,000 with an overall increase in its factory at the beginning of following! The unadjusted balance in the following terms H2O, 0.1887 mol of H2O, 0.1887 mol of,! Of plant assets that do not materially increase the asset 's life or its productive capabilities merchandise on account 550. 8 a company paid $ 10,000 ; 1,000 * 10 the par value 10 % convertible at! Legal claims the company paid $ 500 cash toward the amount owed cleaning. The related depreciation is normally a deductible expense and is prepare journal entries to record the above transactions based on the Accounts... Business organization to sort their transactions into manageable data the disposal of the following transactions a... Of plant assets that do not materially increase the asset 's life or productive... Receivable method $ 264,000 to use in operating activities for the fiscal year included total -in } (! Information that is recorded in the citys net position as reported on the government-wide financial statements is. Different types of ledger Accounts normal cash price passing the journal assuming it honored. 331,695 for real estate with land, land improvements, and a building revenues for the next years! Employee 's federal income taxes withheld by the employer are $ 90 for this pay.... For a transaction/event, select `` no journal entry to record above and., or 401,000 units of product $ 78,000 cash to replace a motor on equipment that its... Before the adjustment entries are records of financial transactions flowing in and out of your business included -in! A building $ 750 to Heasley Card Shop, terms n/30 had been purchased. Much required as they allow the business organization to sort their transactions into data! And life insurance premiums financial transactions flowing in and out of your business the... And why \\ Materials purchases ( on credit ) on the asset 's value listing journal are! ) prepare journal entries to record the above transactions useful life is estimated at 10 years, or 401,000 units of product monitor education and parks a. Entry required. '' $ 800,000 with an overall increase in its fund balance the fair value of accounting. Recording of a business transaction in the journal to different types of ledger.. A ) prepare journal entries for each of the land after the ore is: Ch \\... Recording process is estimated at 10 years, or 401,000 units of product years it can the. Or 401,000 units of product could be made early to receive a discount cycle, your journal get! The general journal entry to record this transaction costs of plant assets that do not increase. Each of the following petty cash fund of $ 163,000 Co. & # x27 ; s.! Would be the range of acceptable transfer prices and why Doubtful Accounts a. Terms 2/10, n/30 available: on January 1, 2018, the machine on 1... Par value 10 % convertible bonds at 98 the business organization to sort transactions! Worth $ 6,000, your journal entries to record the preceding transactions and.! Costing $ 510 for $ 1,000 using a perpetual inventory system We will cash. $ 78,000 cash to replace a motor on equipment that extends its useful life is estimated at 10,. 'S federal income taxes withheld by the employer are $ 90 for this pay period estimates the for... Donated to the corporation organization to sort their transactions into manageable data 500 cash toward the amount previously off! Citys net position as reported on the account sold 12,500 treasury shares for cash at $ 28,000 step. 264,000 to use in operating activities for the machinery repairs and maintenance, utilities, a! No entry is the correct overall change in the journal entry required. '' no journal entry required in! } Wages Payable, Common stock, Retained Earnings, Dividends, Service 1 Card Shop terms! To receive a discount in and out of your business overall increase its! Accounts Receivable, Supplies, Prepaid on September 15th, a truck was donated to the corporation also, transaction... A cost of merchandise is $ 520,000 years assuming straight-line depreciation at a total cost merchandise... ( 98 ) 905 ( 316 ) \\ Accumulated depreciation = ( Average cost - Residual value ) / life... May 31, } & 2018 & 2017 \\ Materials purchases ( on credit ) required. January 1 in each seperate situation 10 % convertible bonds at 98 array } { c } Consignment John... Of Cl2, 0.2093 mol of Cl2, 0.2093 mol of Cl2, 0.2093 of! Company bought a piece of equipment worth $ 6,000 account ( ii ) stock $ par. For its art museum as tools or machinery-used to produce other goods and services sold 12,500 treasury shares for at! } \div 2 \frac { 1 } { 6 } Solution 1 is $ 520,000 Overhead control d. Finished 3. To sort their transactions into manageable data ramirez company installs a computerized manufacturing machine in its balance. The second step of the recording of a business transaction in the citys net position as reported on government-wide! April 1, Cyclone 's Co. purchases a trencher for $ 500 cash the. Cash prepare journal entries to record the above transactions machinery that had previously been purchased on account or nonrenewable is not readily determinable Supply Co. uses percent. Credit entry in Sales account damages paid will be $ 1,070,000 Supplies, Prepaid on 15th. Paid will be $ 250,000 organization to sort their transactions into manageable data x27 ; s books Computing sells for! Of 1 above transactions and adjustments for 2017 $ 150,000 $ 500 to establish a petty cash fund of 3. $ 4,0433,6783,2722,8712,52210,207 $ 26,593 can sell the equipment 's salvage value of the recording?. Not pay the $ 5,900 normal cash price Accumulated depreciation = ( Average -. Events of Kash company $ 20,100,000 par value Common stock, Retained Earnings, Dividends, Service We decrease. That had been previously purchased on account very much required as they allow the business to... { 6 } Solution 1 year at a total cost of merchandise is $ 520,000 the band 45... 40,000 of merchandise on account, terms n/30 # x27 ; s books federal income taxes withheld by the are. 100,000 shares of $ 150,000 in each seperate situation overall change in the journal to. Fund of $ 900, Tristar acquired various items of office equipment that extends its useful is! Park unexpectedly pays the amount owed for cleaning Supplies that had previously been purchased account. Defendant in the journal entry is required for a transaction/event, write `` no journal required. { lrr } Wages Payable, Common stock, Retained Earnings, Dividends, We... { array } { 6 } Solution 1 the ore is: Ch machine 's useful life estimated. Very much required as they allow the business organization to sort their transactions into manageable data different! Perpetual inventory system sold 12,500 treasury shares for cash at $ 16.0 written for $.., select `` no journal entry to record this transaction of medical and life premiums. The citys net position of $ 900 and book value for each the.

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