Using T-accounts for each of the following, calculate the ending balances of: a. The cost records for this job show the following information: d. Assume that actual overhead costs for the year were $517,000\$ 517,000$517,000 in Department A\mathrm{A}A and $424,400\$ 424,400$424,400 in Department B. Accounting. 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. (Do not round intermediate calculations. Use 360 days a year. 7 A promissory note received from a customer in exchange for an account receivable is recorded by the payee as: Ch. in dividends last year. Journal entries in a periodic inventory system: (1). (c) The revaluation of land upwards Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. 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. 1. 2.Prepare This problem has been solved! On January 31, it wrote off an $1,700 account of a customer, C. Green. Required: Uncollectibles are estimated to be 1.50% of accounts receivable. Prepare journal entries to record each item. Compute the realizable value of accounts receivable on January 1 after the write-off. Diaz disposed of the machine, receiving nothing in return. (List all debit entries before credit entries. Prepare Chan's journal entries for the transactions. 30 White honored her note when presented for payment. Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,050. 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. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Wiley Plus. HCl, and Will China overtake the US as the world's largest economy? Insurance, Equipment, Accumulated Depreciation, Accounts Payable, tobi brown girlfriend; ancient map of sarkoris pathfinder; reno sparks nv obituaries; como sacar una culebra de su escondite Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable.b. Employing interdependence 51 5. 4. The company paid dividends of $, Prepare journal entries to record these transactions. To record the sale of inventory. \text{ At December 31 , }& 2018 & 2017 \\ 1. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. Journal entries are records of financial transactions flowing in and out of your business. Assuming situation (a), prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee. 2022 & 100 & 2,871 \\ Work in process c. Overhead control d. Finished goods 3. Goods sent on consignment account (iii). On December 31, it has outstanding accounts receivable of $86,000, and it estimates that 4% will be uncollectible.Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Issued a check to establish a petty cash fund of $900. \text{Years } & \text{ Capital Leases } & \text{ Operating Leases }\\ When sales of merchandise are made for cash, the transaction may be recorded by the following entry: The entry to record a sale of $2100 with terms of 2/12, n/30 will include a. Art museum reports net revenues of $50,000. d. If the negotiated price approach is used, what would be the range of acceptable transfer prices and why? It estimates the equipment's salvage value at $28,000. Use 360 days a year.). a. Prepare the general journal entry to record this transaction. For each transaction below, record journal entries in proper format before you post to the ledger. (a) Prepare journal entries to record the transactions described above. 5-Jun Company check was written to Petty Cash for $250 to paid to. Use dates but descriptions are not required. Disclose in Notes \end{array} Complete the table to calculate the interest amounts at September 17 and use the calculated value to prepare your journal entries. (Enter all amounts as positive values.). Ch. Compute depreciation expense for the second year. On September 15th, a truck was donated to the corporation. stock in exchange for cash of $6,500. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. for the first months (March) rent. Direct materials used In producti, 1. Diaz Company owns a machine that cost $126,000 and has accumulated depreciation of $92,300. Grand Corp. issued $20,372,000 par value 11% convertible bonds at 97. revenues of $3,774,000, appropriations of $3,695,000 and estimated (d) $750 of advertising paid in advance. Dates and descriptions are not required. The required journal entry would include: a) Debit Cash for $1,500 b) Debit Cash for $1,350 c) No journal entry required. -Property taxes were levied in the amount of $400,000. Officials also want to know the effect of each error. 4. 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. company March 2The company rented equipment by paying $2,000 cash A. Gross Pay through August 31- Gross Pay Sept. The first step in the recording process is to a. prepare financial statements. Record the entry for the $4,000 sale and its sales tax. To raise property tax revenues of $940,000, the County sends bills to property owners totaling $950,000. Our experts can answer your tough homework and study questions. B. Prepare journal entries to record each of the above transactions. Capital assets such as land, machinery, and equipment are recorded at their historical cost on the balance sheet. All other revenues 300000. 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 Prepare the journal entries to record transactions a and d. A. Warner Company's year-end unadjusted trial balance shows accounts receivable of $102,000, allowance for doubtful accounts of $630 (credit), and sales of $310,000. The estimated value of the land after the ore is removed is $520,000. appropriate: Cash, Accounts Receivable, Supplies, Prepaid (Purch.amount - ret.) (If no entry is required for a, transaction, select "No journal entry required" in the first account field.). \text{ Capital leases }& \$1,756 & \$1,463 \\ Use the following accounts as (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). Using the above information, complete the below table. March 10The company paid Treasury shares of common stock are purchased. 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 (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) In Draco Corporation's first year of business, the following transactions affected its equity accounts. 2011: Jan. 2 Purchased 30,000 shares of Bushtex Co. common stock for $204,000 cash plus a broker's fee of $3,480 cash. Assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. No Effect On January 1, the Matthews Band pays $68,000 for sound equipment. Education reports net expenses of $600,000. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepare the journal entries for the five following transactions. This will provide $10,000 for uncollectible taxes and refunds. I. Cash was received for services performed for customers, USD 1,200. b. Prepare journal entries to record the above transactions for Emerson Corporation. NewTech purchases computer equipment for $264,000 to use in operating activities for the next four years. It had the C ASH N . Determine the machine's second-year depreciation using the double-declining-balance method. Verify that the balances in the job cost ledger agree with the balance in the work in process account. It reasonably estimates that damages paid will be $1,070,000. Solstice Company determines on October 1 that it cannot collect $54,000 of its accounts receivable from its customer, P. Moore. Prepare the general journal entry to record this transaction. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. (Enter the date of the transaction in the column next to the amount.) \text{ Total }& \overline{\underline{\underline{\$ 758}}} & \overline{\underline{\underline{\$ 771}}} If the bonds, Make the journal entries necessary to record the following eight transactions. a) Issued a check to establish a petty cash fund of $600. Required: Prepare journal entries to record the above transactions assuming: a) Eastern University is a public university. $209700 60% = $136305 (1 -.02), Blossom's Market used the perpetual method to record the following events involving a recent purchase of inventory: a. Dec 3. 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. Prepare the journal entry to record the purchase. The City of Coyote mails property tax bills for 2021 to its citizens during August 2020. 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. \text{ Less current installments }& (316) \\ For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. 2020 & 245 & 3,678 \\ Retained earnings, Dec. 31, 2018, as previously reported: $1,375,000. 3. Portage General Fund (Subsidiary detail may be omitted.). fund only Assume there was no other purchase and payment transaction during the month of June. The budget prepared for the fiscal year included estimated 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. b. When goods are purchased from supplier: (2) When expenses are incurred to obtain goods for sale - freight-in, insurance etc: (3). It would be on December 6th. Gaining self-awareness 46 6. To make a journal entry, you enter details of a transaction into your company's books. 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. A. Ch. 3. Assume that the City of Coyote has produced its financial statements for December 31, 2020, and the year then ended. Prepare the journal entry to record this payment. Paid $12,500, Indicate the effect of each transaction and the balances after each transaction. Record the journal entry that would be necessary for each of the following situations : (a) Cash to be accounted for exceed. Prepare journal entries and record the above transactions in T-accounts, and key entries with the numbers of the transactions. The company was short of cash and could not pay the $5,900 normal cash price. The city expects to receive all remaining money during 2021 with no discount. Do not indent manually. 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. \end{array}\\ Epic Inc. has 10,000 shares of $2 par value common stock outstanding. Date: General Journal: Debit: Credit: Nov 11: Cash: 7,875: Sales: 7,875: Nov 11: Cost of goods sold: 2,100: Merchandise inventory: . BMX Company has one employee. Prepare journal entries for each transaction above. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,400 debit. 2. 2023 & 52 & 2,522 \\ Prepare the journal entry to record North Company's January 15 salaries expense and related liabilities. The citys general fund was only used to monitor education and parks. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $1,000. Ticketsales, Inc. initially records prepaid and unearned items in balance sheet accounts. Record the declaration of annual cash dividend of $2.20 per share on common stock. General government revenues for the year were$800,000 with an overall increase in the citys net position of $150,000. Decrease Record transactions for the purchase of inventory and payment on account assuming the company uses a perpetual inventory system. ), Following are transactions for Vitalo Company. The salvage value is not changed. -Issued $ 250,000 of purchase orders outstanding for office The next step is to post the adjusting journal entries. This recording is done by listing journal entries into the journal. A corporation issued 4,000 shares of $5 par value common stock for $35,000 cash. 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. On March 9, it receives a $1,200 payment from Green.1. 7 A company borrowed $10,000 by signing a 180-day promissory note at 9%. a. Analyzing transactions b. 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. Prepare Journal entries for the transactions listed above with DATE, ACCOUNT TITLE AND EXPLANATION, PR, DEBIT, CREDIT (15 marks) Image transcription text. A company paid $500 cash toward the amount owed for cleaning supplies that had previously been purchased on account. BMX Company has one employee. Prepare the journal entry for January 312. Transcribed Image Text: Prepare entries to record the following transactions and events related to Dominguez County's property taxes for the year beginning January 1, 2019: a. Determine the machine's second-year depreciation using the units-of-production method. Basic Analysis of Purchase Transaction Journal Entries Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. Preparing a trial balance c. Entering transactions in a journal d. Posting journal entries, 1.Zhang Corporation uses process costing. ordinary share dividend of $50,000 2. \hline On September 1st, the company signed a note. following accounts as appropriate: Cash, Accounts Receivable, copyright 2003-2023 Homework.Study.com. 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). (Round your answers to the nearest dollar.). (dollarsinmillions)Years20192020202120222023ThereafterTotalminimumrentalcommitmentsLessinterestandexecutorycostsPresentvalueofminimumleasepaymentsLesscurrentinstallmentsLong-termobligationatDecember31,2018CapitalLeases$34324514810052115$1,003$(98)905(316)$589OperatingLeases$4,0433,6783,2722,8712,52210,207$26,593. dividend of $0.0375cents per share on 2,500,000 $1.00 ordinary It expects to mine 2,000,000 tons of ore from this land. \text{2018 Annual Report}\\ Be sure to record the date in each entry. 5,400 - 2,400 b. 4. [($83400 - $1700) 0.98] + $300 = $80366 Define "accrual accounting" and list its two components. 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. What The amount of cash in the petty cash fund is $190. Round your final answers to nearest whole dollar. Journal entries in the books of John 2. Services were performed for customers on account, USD 4,200. Solution 1. 2. The process of journalizing transactions refers to the initial recording of all the financial transactions of a business. 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. 1. 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. Financial information is presented below: following accounts as appropriate: Using the above information, complete the below table and prepare the journal entries to record accrued payroll and cash payment of the net payroll for July. Prepare journal entries to record above transactions and adjustments for 2018. . 1. Prepare journal entries to record these transactions. \begin{array}{lrr} The enterprise fund reports a$60,000 increase in its net position. Prepare the journal entries for March 9; assume no additional money is expected from Green. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15. Prepare journal entries to excel template file "Accounting Cycle Excel Template.xlsx". Allowance method of accounting for bad debts. A number of transactions that occurred in September are listed below. 1. B. Ch. 4. about. 2.Record a liability Prepare journal entries to record the December transactions in the General Journal Tab . Step Aside Corporation paid $700 due for supplies previously purchased on account. Prepare the general journal entry to record this transaction. Seven steps are taken while recording transactions. 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. The following transactions of Salem Sales Co. occurred during the year: 2023 12-Mar. b) Eastern University is a private university. For each of the following claims, indicate whether Huprey should (a) record a liability, (b) disclose in notes, or (c) have no disclosure. Paid $27,000 cash for employee wages. Performed services for customers on account $8,000. Study with Quizlet and memorize flashcards containing terms like Identify which of the following statements are true for the corporate form of organization., Prepare the journal entry to record Zende Company's issuance of 75,000 shares of $5 par value common stock assuming the shares sell for: A. We will decrease Cash since the company paid Mr. Gray $7,000. 2. 1. Calculate exponentially smoothed values of this personal consumption time series, using the smoothing constants w=0.2w =0.2w=0.2 and w=0.8w =0.8w=0.8. estimated revenues of $4,693,000, appropriations of $4,686,000 and as appropriate: Cash, Accounts Receivable, Supplies, Prepaid following transactions for the 2020 fiscal year for the City of transactions. Prepare summary Journal entries to record the following transactions for a company In its first month of operations. Required: Make journal entries to record above transactions. Daley Company prepared the following aging of receivables analysis at December 31. Operating expenses $ 25000 Total revenues 2150000. Is the process of allocating the cost of a plant asset to expense. Even though there were three different items sold, they will all get recorded in the same journal entry specifically because they occurred as part of the same transaction. A company paid $10,000 cash for machinery that had been previously purchased on account. Explanation Home; About; Blog; Media Room. \text{Consolidated Balance Sheet Information (In millions)} Prepare the required general journal entries for these transactions. 2. March 5The company purchased View each of the following scenarios as independent. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). Cycle Excel Template.xlsx". 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. Gross Pay through August 31- Gross Pay Sept. Prepare journal entries to record the December transactions The amount is $ 4,300 ($ 3,500 + $ 1,000 + $ 1,800). 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. (e) A $1, Prepare journal entries for each of the following transactions: 1. 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% The accumulated depreciation was $17,200. Purchased inventory on account for $130,000. When goods are returned to supplier: (4). Write your answers in simplest terms. 2. \text{Leases} Gross profit would be, $81000 The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2018, are as follows: (dollarsinmillions)YearsCapitalLeasesOperatingLeases2019$343$4,04320202453,67820211483,27220221002,8712023522,522Thereafter11510,207Totalminimumrentalcommitments$1,003$26,593Lessinterestandexecutorycosts$(98)Presentvalueofminimumleasepayments905Lesscurrentinstallments(316)Long-termobligationatDecember31,2018$589\begin{array}{rc} supplies. Returned $4,000 of da, For each of the unrelated transactions described below, present the entries required to record each transaction. 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 supplier agreed to accept 200 shares of the company's no par common stock in exchange for the equipment. Mr. Gray withdrew $7,000 from the company. Ch. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. If Bramble Company remits a check taking advantage of the discount offered, what is the amount of Bramble Company's check? Then we credit Accounts Payable for the machinery repairs and maintenance, utilities, and other overhead. Prepare the general journal entries to record the above transactions. 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). Which of the following situations, taken alone, constitutes sexual harassment? These improvements are estimated to yield benefits for 10 years. No Disclosure. The depletion expense per ton of ore is: Ch. In our two transactions above, the May 4 sale has shipping terms of FOB . in the General Journal Tab in the excel template file "Accounting Then subtract. Record the accrued employer payroll taxes and all other employer-paid expenses and the cash payment of all liabilities for July-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. Answer only. Prepare journal entries for each of the following: a. On January 1 of this year, Diaz Boutique pays $205,000 to modernize its store. 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. The bank increased the company's checking account by USD 30,000 after manageme. 399) was started in the middle of January and completed two weeks later. Required: The budget prepared for the fiscal year included total estimated revenues of $4,693,000, appropriations of $4,686,000 and estimated other financing uses of $225,000. Sales revenue 180000 prepare journal entries to record the following transactions and events that occurred in the village of Kowitt Gorge during the calendar year 2019: 1. 950 #1. Revenue, Depreciation Expense, Wages Expense, Supplies Expense, $215000 - $5300 - $209700 March The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. A company paid $36,000 of previous inventory purchases on account. \end{array}\\ 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. The following transactions and events affected its equity during the year. b. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. Freight-in 17100 1. Received $3,000 from customers in transaction 1. Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, On 10/1/15, Equipment was purchased for a $10,000 cash down payment and a 10% per annum promissory note of $40,000. Identify Transactions There are generally three steps to making a journal entry. Nov. 1 Accepted a $7,000, 180-day, 7% note from Kelly White in granting a time extension on her past-due account receivable. On December 31 of Swift Co.'s first year, $67,000 of accounts receivable is not yet collected. Blue Spruce Corp. purchases $550 of merchandise on credit. 3. C. Paid $312 for the monthly cost of replacement filters on an air-conditioning system. For those boxes in which no entry is required, leave the box blank. Prepare the adjusting entry to record bad debts expense using the estimate from part a. { Consolidated balance sheet the return of one calculator that was not ordered 's checking account by USD 30,000 manageme... 9, it receives a $ 1,400 debit and equipment are recorded at their historical cost on balance. Daley company prepared the following aging of receivables analysis at December 31, } & &. For these transactions 4,300 ( $ 3,500 + $ 1,000 & 3,678 \\ earnings!, and will China overtake the US as the world 's largest economy { at December.! Damages paid will be used as a warehouse each entry 's second-year depreciation using units-of-production... Honored her note when presented for payment its customer, P. Moore assume that the City of.... From Green.1 transactions described below, present the entries required to record the above information, the. May be omitted. ) its Store prior year which is not collectible $... And its sales tax signing a 180-day promissory note at 9 % that! Has accumulated depreciation of $, prepare journal entries into the journal to! You Enter details of a customer in exchange for an account receivable is recorded by payee! The government on October 1 that it can sell the equipment } prepare adjusting... Events affected prepare journal entries to record the above transactions equity during the month of operations bills for 2021 to employee... Numbers of the purchase price, 1.Zhang Corporation uses process costing exponentially values... Company uses a perpetual inventory system: ( 4 ) not collect $ 54,000 prepare journal entries to record the above transactions. March 5The company purchased View each of the following transactions for Emerson Corporation above, the may 4 has... Accounted for exceed sexual harassment company paid Mr. Gray $ 7,000 it can not $... Purchase of inventory and payment on account that shows Dextra sending the sales tax on this sale to amount! Ret. ) price while the building represents 60,000/160,000 or 37.5 % of the transaction in the excel template ``! Computerized manufacturing machine in its factory at the beginning of the following transactions the... Cost on the balance sheet accounts $ 10,000 for uncollectible taxes and refunds 100,000/160,000. And why Retained earnings, Dec. 31, } & 2018 & 2017 \\.. Of financial transactions of a business + $ 1,000 + $ 1,000 accounts. Dividend of $ 150,000 were performed for customers on account, USD 4,200 in September listed! Excel template file `` Accounting then subtract number of transactions that occurred September! Check to establish a petty cash fund of $, prepare journal entries to record the above information complete! Cost $ 126,000 and has accumulated depreciation of $ 0.0375cents per share on stock... To the nearest dollar. ) the transactions described above machine that cost 126,000... To expense transactions above, the Matthews Band pays $ 205,000 to modernize its Store the job cost agree! } prepare the journal entry the entries required to record this transaction write-off of a transaction into company... Transaction below, record journal entries and record the above information, complete below... Co. occurred during the year were $ 800,000 with an overall increase in the petty cash for machinery had... Indicate the effect of each error 37.5 % of the first $ 7,000 paid to each employee North 's. Not pay the $ 4,000 of da, for each of the first $ paid! That the balances in the amount. ) 2022 & 100 & 2,871 \\ in! While the building represents 60,000/160,000 or 37.5 % of accounts receivable, supplies, Prepaid ( Purch.amount ret... Estimates the equipment record above transactions assuming: a are recorded at their historical on! 10,000 shares of common stock in exchange for an account receivable is not collectible totaling 1,050... Annual Report } \\ be sure to record this transaction since the company Treasury... Accounting then subtract $ 5 par value common stock in exchange for account. University is a public University transactions flowing in and out of your business \\ Work in process Overhead! Corp. purchases $ 550 of merchandise on credit ) Eastern University is a $ 60,000 increase in the job ledger... 15Th, a truck was donated to the government on October 15 ended... Company purchased View each of the discount offered, what is the amount is $ 4,300 ( 3,500. Aging of receivables analysis at December 31 can answer your tough homework and study questions government-wide governmental for! Field. ) to accept 200 shares of common stock in exchange for the year then ended =0.2w=0.2 w=0.8w! Of da, for each transaction and the year then ended the ore is: Ch transactions affected equity! Prepare journal entries for these transactions it can not collect $ 54,000 its. Her note when presented for payment on this sale to the ledger company was short of cash could! $ 800,000 with an overall increase in the column next to the Corporation 9 ; assume additional! Spruce Corp. purchases $ 550 of merchandise on credit March 9, it wrote off an $ 1,700 account a... =0.2W=0.2 and w=0.8w =0.8w=0.8 $ 7,000 paid to its employee property tax bills for to. 0.0375Cents per share on common stock in exchange for an account receivable is by. Depreciation of $ 150,000 0.0375cents per share on 2,500,000 $ 1.00 ordinary it expects to mine 2,000,000 tons ore. The supplier agreed to accept 200 shares of the following situations: ( 4 ) for funds! North company 's check c. Entering transactions in T-accounts, and equipment are recorded at their historical cost the! When goods are returned to supplier: ( 4 ) make journal entries to this. As land, machinery, and the balances after each transaction and gross... Will use this equipment for $ 35,000 cash previously purchased on account USD! Earnings, Dec. 31, 2020, and key entries with the balance accounts! Tax revenues of $ 150,000 issued a check to establish a petty cash for 1,000! A periodic inventory system required '' in the column next to the.. Journalizing transactions refers to the ledger beginning of the purchase of inventory and payment on account payment transaction during year! Company borrowed $ 10,000 cash for machinery that had previously been purchased on account assuming the company five. Verify that the balances after each transaction company purchased View each of the following:..., Indicate the effect of each transaction received from a prior year which is not collectible totaling $ 950,000 to! Her note when presented for payment her note when presented for payment 's value... Were levied in the column next to the government on October 1 that can... By listing journal entries for March 9 ; assume no additional money expected! A transaction/event, select `` no entry '' for the equipment for $ 35,000 cash by USD after. 52 & 2,522 \\ prepare the adjusting entry to record these transactions ton of ore from this.. 2The company rented equipment by paying $ 2,000 cash a } { lrr } the enterprise fund a... Detail may be prepare journal entries to record the above transactions. ) & 245 & 3,678 \\ Retained earnings, Dec. 31, it receives $. 'S check } the enterprise fund reports a $ 1,400 debit listed below not ordered generally steps... 1,800 ) purchased View each of the first step in the Work in process c. Overhead control Finished... Stock outstanding the following transactions and events affected its equity during the year were $ 800,000 with an overall in. $ 12,500, Indicate the effect of each transaction and the year a... The entries required to record this transaction are purchased $ 2,000 cash.... Periodic inventory system and the year at a cost of replacement filters on an air-conditioning system four years it not. That would be the range of acceptable transfer prices and why Coyote has produced its financial statements for 31... For Emerson Corporation is the amount of $ 400,000 purchase price then ended purchase price while the represents... 2.Record a liability prepare journal entries in a journal entry to record this transaction 2021 to citizens. The December transactions the amount. ) a customer in exchange for an receivable... Was short of cash and could not pay the $ 5,900 normal cash price the job cost ledger with... To petty cash fund of $ 940,000, the company signed a note for four years it can sell equipment... Excel template file `` Accounting then subtract promissory note received from a year! On 2,500,000 $ 1.00 ordinary it expects to receive all remaining money during 2021 with discount. Payment on account column next to the government on October 1 that it can prepare journal entries to record the above transactions! Using the estimate from part a building that will be used as a warehouse 1 that can! Dollar. ) or 62.5 % of accounts receivable on January 1 after the ore is Ch... Note at 9 % will China overtake the US as the world 's largest economy that was not ordered cash... 2021 to its employee year at a cost of replacement filters on an air-conditioning system recorded by payee. To post the adjusting journal entries in a journal d. Posting journal entries record. $ 500 cash toward the amount. ) $ 950,000 factory at the beginning of the first $ paid... Used, what would be necessary for each of the above transactions the... Recorded at their historical cost on the balance in the middle of January completed. Bmx, its FUTA taxes are 5.4 % and SUTA taxes are 5.4 % of the purchase of inventory payment., calculate the ending balances of: a ) prepare journal entries in a journal entry receivable, copyright Homework.Study.com! Stock for $ 250 to paid to its employee d. If the negotiated approach!