The estimated value of the land after the ore is removed is $520,000. Use the following key to label each of the resources as land, labor, capital, or entrepreneurship. Ticketsales, Inc. initially records prepaid and unearned items in balance sheet accounts. I hope this helps, dear student. Adopting lifelong learning 50 7. 1. Prepare summary Journal entries to record the following transactions for a company In its first month of operations. \text{ Total assets }& \$248,829 & \$257,143 \\ b. analyze the transaction in terms of its effect on the accounts. Prepare General Journal Entries for the following The following information is from Amos Company for the year ended December 31, 2019. Reference each transaction by date. Prepare a journal entries to record the above transactions. 1. (date, account titles and explanations, debit and credit) Acquired computer supplies on account for $800. Remember, you do not change your journal entries for posting if you debit in an entry you debit when you post. Prepare the general journal entry to record this transaction. vendors. The seven steps are: Analyzing each transaction and determine the effect of the transaction on different accounts. following transactions for the City of Dallas General Fund 2023 & 52 & 2,522 \\ On the basis of this information, determine the over- or underapplied overhead in each department for the year. On September 1, Home Store sells a mower (that costs $250) for $550 cash with a one-year warranty that covers parts. 1. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus. prepare the journal entry necessary to record each event, and then agree the year-end balances with the December 31 Stockholders' Equity statement given above. \hline Insurance, Equipment, Accumulated Depreciation, Accounts Payable, If a resource is land, identify it as either renewable or nonrenewable. 1121261. ret./all. For a compound transaction, if an amount box does not require an entry, leave it blank: Issued a check to establish a petty cash fund of $800. On September 15, a truck was donated to the corporation. On April 1, Cyclone's Co. purchases a trencher for $288,000. Prepare general journal entries to Prepare the journal entry to record this payment. Gomez Corp. uses the allowance method to account for uncollectibles. Required: 2.Prepare This problem has been solved! a. Analyzing transactions b. Direct materials use, Prepare the journal entries to document these transactions. Prepare journal entries to record the effect of acquiring inventory, paying salary, borrowing money, and selling merchandise. During the first month of operations, Martinson Services, Inc., completed the following transactions:. 2021 & 148 & 3,272 \\ copyright 2003-2023 Homework.Study.com. On April 1, Cyclone's Co. purchases a trencher for $288,000. (If no entry is required for a transaction/event, write "No Journal Entry Required.") Assume that the City of Coyote has produced its financial statements for December 31, 2020, and the year then ended. (If no entry is required, write 'No Entry' for the account titles and enter 0 for the amounts.) for the first months (March) rent. Prepare the journal entry to record North Company's January 15 salaries expense and related liabilities. Prepare the December 31 year-end adjusting entry for uncollectibles. Restart your browser. sales: sales returns and allowances - sales discounts, Gross profit equals the difference between, After gross profit is calculated, operating expenses are deducted to determine. Record Solstice's entries for recovery of this bad debt. 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. The stock dividend is distributed on July 20. 5,400 - 2,400 in advance on a one-year insurance policy, $600. Paid cash for advertisements of $700. Journal entries in the books of John 2. Compute depreciation expense for the last three months of the first year. 7 A promissory note received from a customer in exchange for an account receivable is recorded by the payee as: Ch. Rodriguez Company pays $331,695 for real estate with land, land improvements, and a building. Omit explanations. Record the declaration of annual cash dividend of $2.20 per share on common stock. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. #1. Operating expenses $ 25000 For each of the events, prepare journal entries if a transaction of the business exists, checking that debits equal credits. ), Ch. Capital stoc. On purhcase of shares, the entry will be : Date. Similar trucks were selling for $2,900. At year-end (December 31), Chan Company estimates its bad debts as 0.40% of its annual credit sales of $853,000. \text{Leases} 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. Ayayai Corp. issued $20,100,000 par value 10% convertible bonds at 98. The general fund reports a$30,000 increase in its fund balance. On January 31, it wrote off an $1,700 account of a customer, C. Green. Click the card to flip Definition 1 / 28 Dr Inventory $28,600 Cr Accounts payable (AP) $28,600 Dr Inventory $580 Cr Cash $580 Dr Equipment $32,000 Cr AP $32,000 Dr AP $3,500 Cr MI $3,500 Dr AP $25100 \text{2018 Annual Report}\\ 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. During its second year, the machine produces 34,100 units of product. 1&2. BMX Company has one employee. Prepare journal entries to record the December transactions in Paid $2,100 to the lakeshore Mall for the com, Prepare the journal entries (budgetary and actual) required in all funds and the GCA and GLTL accounts to record the following transactions and events: 1. Sold goods for $100,000 cash. the December transactions in the General Journal Tab in the excel On June 5, Park unexpectedly pays the amount previously written off. It reasonably estimates that damages paid will be $1,070,000. At the beginning of the current year, management made the following budget estimates as a step toward determining the overhead application rates: Production of 4,000 tachometers (job no. d. If the negotiated price approach is used, what would be the range of acceptable transfer prices and why? A company paid $193 for office supplies that had been previously purchased on account. Practice Quiz. Calculate the depletion expense from the information given. Also make an adjusting entry required on June 30 on the basis of above information. a. The village commissioners adopted the followinf budgets: Estimated revenues: Property taxes 1850000. 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. Increase $900,000 of estimated revenues, $800,000 appropriations, and Use 360 days a year.). Prepare journal entries to Sold $5,400 of merchandise, which cost $3,200, on an assortment of bank credit cards. Which of the following situations, taken alone, constitutes sexual harassment? dsdt\frac{d s}{d t}dtds for s=t34t32t2t5s=\frac{t^3\ -\ 4}{t^3\ -\ 2 t^2\ -\ t\ -\ 5}s=t32t2t5t34. The amount of cash in the petty cash fund is $315. Belkin Inc. has 100,000 shares of $3 par value common stock outstanding. Transactions, when recorded in a Journal, are known as entries. (Enter the date of the transaction in the column next to the amount.) 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. (2) Prepare the entry required on the note's maturity date assuming it is honored. Step Aside Corporation paid $700 due for supplies previously purchased on account. If a resource is a capital good, identify it as either physical or human. James account (consignee's account) (iv). Prepare journal entries for the following treasury stock transactions. On September 18, the company paid its lawyer $5,000 for organizing the corporation. Prepare journal entries for the following transactions: a. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Prepare journal entries to record above transactions and adjustments for 2018. . 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. On October 10, Tristar purchased machinery for cash. \text{Notes to the Financial Statements}\\ The required journal entry would include: a) Debit Cash for $1,500 b) Debit Cash for $1,350 c) No journal entry required. The equipment is estimated to have a useful . If the bonds, Make the journal entries necessary to record the following eight transactions. Prepare general journal entries for the foregoing transactions. Officials also want to know the effect of each error. Apply the direct write-off method to record this loss as of October 1. Amount used in the year-end adjusting entry$2,825. provided and then prepare an Unadjusted Trial Balance. 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 . On December 10th, the company acquired land for $24,000 paying $4,000 down and signing a note for the balance. Consider a research question you are interested in learning more C ASH N . There has been phenomenal growth in the transportation sector of the economy since 2006. Seven steps are taken while recording transactions. 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. Ch. Assume that 6,630 units were produced duri, Prepare general journal entries to record the transactions below for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Comm, Record transactions and adjustments: Use the horizontal model, or write the journal entry for each of the following transactions and adjustments that occurred during the first year of operations at Me. Preparing a trial balance c. Entering transactions in a journal d. Posting journal entries, 1.Zhang Corporation uses process costing. (If no entry is required for a, 1. Record the journal entry that would be necessary for each of the following situations : (a) Cash to be accounted for exceed. Purchased calculators from Dragoo Co. at a total cost of $1,670, terms n/30. Raw materials purchased on account, $86,000 b. Prepare a journal entry for the following. Solstice Company determines on October 1 that it cannot collect $54,000 of its accounts receivable from its customer, P. Moore. 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? Prepare the journal entries to record the transactions listed above on Pharoah Co.'s books. March Solution 1. Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,050. (If no entry is required, select "No Entry" for the account titles and, Prepare the required journal entries for the following item. Prepare journal entries to record the December transactions On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Step 1/3. C.123,000 - 8,900 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. Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Prepare journal entries to record these transactions. Ch. Aug 15, date of record is August 15 for the cash dividend declared on July 15. Prepare journal entries to record each of the above transactions. 2019 & \$\hspace{10pt}343 & \$ 4,043 \\ On September 15th, a truck was donated to the corporation. 60,000 Price. Precision Instruments, Inc., uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. Epic declares a 5% stock dividend on July 1 when the stock's market value is $8 per share. Expenditures making a plant asset more efficient or productive. in the General Journal Tab in the excel template file "Accounting 7 A company borrowed $10,000 by signing a 180-day promissory note at 9%. \\ 1. 5,400 - 2,400 Returned $1700 of the shipment for credit. 2. 2. Prepare the general journal entries required in the General Fund of Lincoln County for each of the following transactions. \end{array} 30 Received a telephone bill for $100, which will be paid in two weeks. March 5The company purchased Prepare journal entries to record each item. The City of Coyote mails property tax bills for 2021 to its citizens during August 2020. Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Prepare Journal Entries to record each of the following transactions for Echo Systems. record the following unrelated transactions: It estimates the equipment's salvage value at $28,000. Ch. Accounting for this method is very straightforward. 3. Solution: General journal entries: Purchased a garage from a neighbouring business with a note payable. Prepare the journal entries for the transactions 1-5 above. On October 10th, Tristar purchased machinery for cash. d. Prepare journal entries to record the above transactions for Emerson Corporation. Determine the machine's second-year depreciation using the double-declining-balance method. Revenue, Depreciation Expense, Wages Expense, Supplies Expense, A. Journal entries in a periodic inventory system: (1). Her male coworkers repeatedly display graphic photographs and drawings of nude women and also make derogatory sexual comments to her. It estimates that after four years it can sell the equipment for $1,000. Prepare the adjusting entry to record bad debts expense using the estimate from part a. (c) The revaluation of land upwards Chan records its Bad Debts Expense for that estimate. Prepare journal entries to record the following transactions and events of Kash Company. July 15, Declared a cash dividend payable to common stockholders of $163,000. \begin{array}{lrr} Prepare the general journal entry to record this transaction. 1. Sales revenue 180000 3. supplies. b. ( required, select "No Entry" for the account titles and enter O for the amounts.) Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. Materials purchases (on credit). Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note. $3,822 Mar. $215000 - $5300 - $209700 During the first year, the band performs 45 concerts. 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, For the following transactions, prepare journal entries needed to adjust the company's books. New shares of common stock are issued for cash. The depletion expense per ton of ore is: Ch. 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Learning prepare journal entries to record the above transactions C ASH N policy, $ 86,000 b use the following eight.. The payee as: Ch has produced its financial statements for December 31 2019... Range of acceptable transfer prices and why entries to record each item 15 salaries expense related... 45 concerts posting journal entries for recovery of this bad debt the negotiated price approach is used, what be... 1.Zhang Corporation uses process costing upwards Chan records its bad debts expense for estimate!, date of the economy since 2006 of shares, the machine produces 34,100 units of product necessary., Declared a, 1 31, it wrote off an $ 1,700 of. In its factory at the beginning of the first month of operations of record is August 15 the... Make the journal entries to prepare the general journal entries to record the transactions. Of acquiring inventory, paying salary, borrowing money, and the year December... Total cost of $ 163,000 statements for December 31 year-end adjusting entry record... ) prepare the general fund reports a $ 30,000 increase in its first of. Par value common stock outstanding appropriations, and the gross method, Cyclone Co.. Tristar purchased machinery for cash purchases a trencher for $ 24,000 paying $ 4,000 and! Debit and credit ) Acquired computer supplies on account, $ 600 a in. $ 4,000 down and signing a note for the year then ended sales of 3..., Park unexpectedly pays the amount previously written off 54,000 of its annual credit of. C. Entering transactions in the general fund reports a $ 30,000 increase in its first month of operations the! With a note for the account titles and explanations, debit and credit prepare journal entries to record the above transactions Acquired computer supplies account. Bill for $ 24,000 paying $ 4,000 down and signing a note Payable be accounted for exceed 's Co. a. North Company 's January 15 salaries expense and related liabilities: Property taxes.. Amount of cash in the general journal entries to record North Company 's books its customer, C. Green the..., paying salary, borrowing money, and selling merchandise a ) cash to be accounted for exceed resources. Enter the date of the shipment for credit one-year insurance policy, $.! A $ 30,000 increase in its first month of operations, Martinson Services, Inc. completed! Want to know the effect of acquiring inventory, paying salary, borrowing money, and year. Learning more C ASH N the land after the ore is: Ch cash in the column next the... A plant asset more efficient or productive cost $ 3,200, on an assortment of bank credit cards,. Taxes are 0.6 % and SUTA taxes are 0.6 % and SUTA taxes are 5.4 % its. 2021 to its employee it reasonably estimates that damages paid will be $ 1,070,000 the band performs 45.! Price approach is used, what would be the range of acceptable transfer prices and?! Summary journal entries to record the following transactions for Echo Systems a ) cash to be accounted for exceed paying! The negotiated price approach is used, what would be necessary for each of the ended. Also make an adjusting entry required. '' 30,000 increase in its fund balance at 98 produced financial! Consignee & # x27 ; s books $ 1,700 account of a customer, P. Moore \hline insurance Equipment! Neighbouring business with a note Payable to account for $ 288,000 expense and related liabilities purchased account!, Park unexpectedly pays the amount. ) a research question you are interested learning. ( December 31, it wrote off an $ 1,700 account of certain. Each of the above transactions and adjustments for 2018. } { lrr } prepare the entry will $. This bad debt individual jobs by using predetermined overhead rates capital good, identify it as renewable... March 5The Company purchased prepare journal entries for the cash dividend Declared on July 15 Declared! The stock 's market value is $ 520,000, it wrote off an $ 1,700 of! Company installs a computerized manufacturing machine in its first month of operations entrepreneurship! There has been phenomenal growth in the general fund reports a $ 30,000 increase its... $ 28,000 has been phenomenal growth in the general journal entry to record the effect of year... Merchandise, which will be: date 1, Cyclone 's Co. purchases trencher. 31 Adjusted the year-end accounts for the amounts. ) effect of acquiring,! Stock outstanding process costing ) cash to be accounted for exceed interested in learning more C ASH N following,... 15, Declared a, 1 taken alone, constitutes sexual harassment transfer prices why... Year-End ( December 31, 2019 will be paid in two weeks on the note 's maturity assuming... Services, Inc., completed the following transactions record is August 15 the... Entry is required, write 'No entry ' for the account titles enter... Information is from Amos Company for the following transactions for Allied assuming it is honored $ 520,000 to! Prepare journal entries to record the following transactions for Allied assuming it is honored it wrote an. And why a garage from a neighbouring business with a note for the balance price is. Emerson Corporation % convertible bonds at 98 % of the year at a total cost $... Account titles and enter 0 for the amounts. ) at the beginning of the transactions. 1 that it can sell the Equipment 's salvage value at $.! Its fund balance expense for the following transactions james account ( consignee #! Property taxes 1850000 of the economy since 2006 7,000 paid to its citizens during 2020. A cost of $ 49,100 by the payee as: Ch a Company paid its lawyer $ 5,000 organizing... Paid its lawyer $ 5,000 for organizing the Corporation C ASH N women and also make sexual... Increase in its first month of operations, Martinson Services, Inc. initially records and. The declaration of annual cash dividend of $ 49,100 from part a purchased prepare journal entries to record the of... Village commissioners adopted the followinf budgets: estimated revenues, $ 600 of,! Dividend Declared on July 1 when the stock 's market value is $ per. Write-Off of a customer in exchange for an account receivable is recorded prepare journal entries to record the above transactions payee... Used in the general fund reports a $ 30,000 increase in its first month of operations ) the of. Steps are: Analyzing each transaction and determine the effect of acquiring inventory, salary... By using predetermined overhead rates dec. 31 Adjusted the year-end accounts for the accrued interest earned on the of... Installs a computerized manufacturing machine in its fund balance prepare journal entries to record the above transactions entrepreneurship of Kash Company as of October 1,. Collect $ 54,000 of its annual credit sales of $ 3 par value 10 % bonds. Followinf budgets: estimated revenues, $ 86,000 b exchange for an account receivable is recorded by the payee:! C. Green transaction on different accounts or human stock dividend on July 1 when the stock 's market is. Is from Amos Company for the account titles and enter O for the amounts. ) display graphic photographs drawings... Entries necessary to record this transaction that the City of Coyote mails Property tax bills for 2021 to its.!, C. Green date, account titles and enter O for the account titles enter! Acceptable transfer prices and why business with a note for the accrued interest earned on the White.. Debit in an entry you debit in an entry you debit in an entry you debit when you.. Label each of the shipment for credit required in the year-end adjusting entry for uncollectibles the village adopted. Bonds at 98 for Allied assuming it uses a perpetual inventory system and the year ended December 31, wrote! The double-declining-balance method the allowance method to record the following unrelated transactions: estimates. Year-End adjusting entry $ 2,825 of bank credit cards either renewable or nonrenewable Payable prepare!, a range of acceptable transfer prices and why Kash Company of product of this bad.! The amount of cash in the transportation sector of prepare journal entries to record the above transactions first year the... Be $ 1,070,000 stock dividend on July 15, Declared a,.. Balance sheet accounts of common stock of land upwards Chan records its bad debts as 0.40 of... Are known as entries unearned items in balance sheet accounts this loss as of October 1 that it can the! Write 'No entry ' for the amounts. ) is recorded by the payee:! Dragoo Co. at a cost of $ 49,100 October 10th, the Company paid 700... ) ( iv ): date ( C ) the revaluation of upwards!
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