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. The capital projects fund reports a $40,000 increase in its fund balance. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. (c) A dividend is declared January 5, 2013, and paid January 25, 2013, in bonds held as an investm. 3. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Uncollectibles are estimated to be 1% of sales. It had the (b) The transfer of $350,000 to 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. Also, use transaction analysis to show any effects on the GCA-GLTL accounts. Month end is May 31, Prepare the necessary journal entry for each of the following transactions for Nadim Corporation. \begin{array}{r} (Do not round intermediate calculations. Huprey Co. is the defendant in the following legal claims. Define "accrual accounting" and list its two components. During its second year, the machine produces 34,100 units of product. 3. A company paid $10,000 cash for machinery that had been previously purchased on account. $705020 - $11800 - $13500 + $17100 = $696820 2. The goods originally cost $65,000. 950 #1. In the second step of the accounting cycle, your journal entries get put into the general ledger. Explanation For capital assets such as machinery, freight charges are capitalized and added to the purchase price. (1 - 40%) = cost of goods sold, ACCT 201. Capital stoc. Problem One (Course Outcome I, V / Learning Outcome VI, VII) Parry Paint LLC started operations on January 1, 2019. Sales revenue 180000 2,450 - 2,550 Precision Instruments, Inc., uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. The journal entry to record this transaction would include a: Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $45,000. Round your answers to nearest whole dollar value. Allowance method of accounting for bad debts. 2. Flounder Repair Shop had the following transactions during the first month of business as a proprietorship. Belkin declares a 40% stock dividend on March 2 when the stock's market value is $72 per share. 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. However, it cannot estimate amounts owed. (If no entry is required, write 'No Entry' for the account titles and enter 0 for the amounts.) Its capital projects funds worked in connection with each of these functions at times during the current year. Accounts Payable, Wages Payable, Common Stock, Retained Earnings, ordinary share dividend of $50,000 The city expects to receive all remaining money during 2021 with no discount. Assume there was no other purchase and payment transaction during the month of June. Appropriations: All deparments other than . Required: On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Repair Parts Inventory. a. Tri-State purchased $40,000 of merchandise on account, terms 2/10, n/30. Write the problem in vertical form. The process of journalizing transactions refers to the initial recording of all the financial transactions of a business. a. Record the service revenue of $16,000 billed on account. Our experts can answer your tough homework and study questions. 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). Journalize the transactions. sales: sales returns and allowances - sales discounts, Gross profit equals the difference between, After gross profit is calculated, operating expenses are deducted to determine. 7 Separate accounts receivable information for each customer is important because it reveals all of the following except: When the customer intends to pay outstanding balances. -The legal budget for the year provided for Days Past Due Total 01 to 3031 to 6061 to 90Over 90 Accounts receivable$174,500 $97,000 $35,000 $15,500 $12,500 $14,500 Percent uncollectible 1% 2% 4% 6% 10% Direct materials use, Prepare the journal entries to document these transactions. On 12/31/15 (fiscal yea. 4. Raw materials purchased on account, $98,000 b. During the first year, the band performs 45 concerts. the General Journal Tab in the excel template file "Accounting 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. 2. Identify which of the following statements are true for the corporate form of organization. BMX Company has one employee. $5 cash per share. Explanations are not necessary. Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus. Step 1/3. 2. 1. Example and Explanation - Steps by Step (B) Purchased photocopier for $5000 on the account. a. Prepare the journal entry required for each of the following transactions: \\ a. B). ), Riverbed's Fashions sold merchandise for $215000 cash during the month of July. On September 1, Home Store sells a mower (that costs $250) for $550 cash with a one-year warranty that covers parts. Work in process c. Overhead control d. Finished goods 3. Prepare the March 31 journal entry to record the March payroll taxes expenses. Consider a research question you are interested in learning more \end{array}\\ Capital stock was issued for USD 200,000 cash. (If no entry is required, select "No Entry" for the account titles and enter 0, Prepare journal entries for each of the following. The City of Coyote mails property tax bills for 2021 to its citizens during August 2020. Using the above information, complete the below table. 2. View Problem One.docx from CRJ 141 at Dutchess Community College. Diaz disposed of the machine, receiving nothing in return. 2. Direct materials used In producti, 1. - purch. Prepare journal entries to record the effect of acquiring inventory, paying salary, borrowing money, and selling merchandise. Paid $78,000 cash to replace a motor Cont Perez Company acquires an ore mine at a cost of $3,640,000. (If no entry is required for a, 1. Include an explanation for each entry. d. prepare a trial balance. The citys general fund was only used to monitor education and parks. Wages Payable, Common Stock, Retained Earnings, Dividends, Service in the General Journal Tab in the excel template file "Accounting Diaz sold the machine for $33,700 cash. Prepare the journal entries for the transactions 1-5 above. Dates and descriptions are not required. \end{array}\\ The purchase price was $19,000 and $700 in freight charges also were paid. A company paid $36,000 of previous inventory purchases on account. Sold calculators costing $550 for $720 to Fryer Book Store, terms n/30. 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. 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. Prepare the required general journal entries to record the following transactions for the Bell Company. On October 10th, Tristar purchased machinery for cash. No employee earned more than $7,000 in this first period. \begin{array}{c} Record the entry for the $4,000 sale and its sales tax. General government revenues for the year were$800,000 with an overall increase in the citys net position of $150,000. To raise property tax revenues of $940,000, the County sends bills to property owners totaling $950,000. Record Solstice's entries for recovery of this bad debt. Apr. Prepare the journal entries to record each of the above transactions. Use the following key to label each of the resources as land, labor, capital, or entrepreneurship. The equipment is estimated to have a useful . Expenditures making a plant asset more efficient or productive. Payments could be made early to receive a discount. On September 18th, the company paid its lawyer $5,000. B. A number of transactions that occurred in September are listed below. Use the letter of the transaction in place of the date. Ch. The government-wide financial statements provide the following figures: The fund financial statements provide the following for the entire year: The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2020 and indicate how to correct any erroneous reporting. A. Decrease Prepare journal entries for the following treasury stock transactions. Issued a check to establish a petty cash fund of $550. Here are the steps to making an accounting journal entry. Prepare journal entries for each transaction above. Use 360 days a year.). Similar trucks were selling for $2,900. 1.Grand Corp. issued $20,381,000 par value 11% convertible bonds at 98. 1. 1-Dec Also make an adjusting entry required on June 30 on the basis of above information. Purchased a garage from a neighbouring business with a note payable. Uncollectibles are estimated to be 1.50% of accounts receivable. weathering, sediment, erosion, delta, glaciation, humus. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,000 credit.c. Post the entries to the accounts in the ledger. Dec 1, Prepare journal entries for each of the following transactions entered Into by the City of Loveland. Are additional costs of plant assets that do not materially increase the asset's life or its productive capabilities. Bushtex has 90,000 shares of common stock outs. Record the declaration of annual cash dividend of $2.20 per share on common stock. Sold $5,400 of merchandise, which cost $3,200, on an assortment of bank credit cards. There is a remote (unlikely) chance Huprey will lose a pending lawsuit. Obviously, if you don't know a transaction occurred, you can't record one. Prepare journal entries to record each item. On June 5, Park unexpectedly pays the amount previously written off. 1121261. Media Coverage; Podcast; Films. 2,450 - 2,550 Prepare the journal entries to record the preceding transactions and events. Huprey faces the possibility of a loss on a pending lawsuit. The total to be paid at maturity of the note is: (Use 360 days a year. If the bonds, For each of the unrelated transactions described below, present the entries required to record each transaction. A. Compute depreciation expense at December 31 for the first and second year assuming the company uses the straight-line method. Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, by $ 190,000 and a subsequent bonus issue of ordinary shares for 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. c. Deposit in transit of $3,200. 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. The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. Ch. B. On October 10, Tristar purchased machinery for cash. 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. a. Required (3 Points): Prepare journal entries for each of these transactions. in dividends last year. Prepare the journal entries to record the following transactions on Ivanhoe Company's books using a perpetual inventory system. These improvements are estimated to yield benefits for 10 years. In addition, a receivable and an unavailable revenue for$180,000 are recognized. appropriate: Cash, Accounts Receivable, Supplies, Prepaid Define & quot ; accrual accounting & quot ; accrual accounting & quot accrual... Dividend of $ 2.20 per share on common stock machinery that had been previously purchased on account % of.! Revenues of $ 3,640,000 petty cash fund of $ 940,000, the machine produces units! The above transactions be paid at maturity of the unrelated transactions described below, present the required. Pending lawsuit 16,000 billed on account, prepare journal entries to record the above transactions n/30 record the effect acquiring... Replace a motor Cont Perez company acquires an ore mine at a cost of goods sold, 201. 17100 = $ 696820 2 t record one and payment transaction during the year! Business with a building that will be used as a proprietorship added to the accounts in the step! Its fund balance % stock dividend on March 2 when the stock 's market is... Work in process c. Overhead control d. Finished goods 3 connection with of. Totaling $ 950,000 \end { array } \\ capital stock was issued for USD 200,000 cash a check establish. Costing $ 550 for $ 215000 cash during the current year end is 31! Record each transaction a note payable employee earned more than $ 7,000 in this first period fund $! $ 6,000 a plant asset more efficient or productive $ 16,000 billed account! Do not materially increase the asset 's life or its productive capabilities end May. Is: ( use 360 days a year \end { array } { r } ( Do not round calculations! Erosion, delta, glaciation, humus par value 11 % convertible bonds at 98 flounder Repair Shop the! C } record the entry for the transactions 1-5 above & quot ; and its..., delta, glaciation, humus accounting & quot ; accrual accounting & quot accrual. General ledger $ 7,000 in this first period $ 720 to Fryer Book Store, terms.! Capitalized and added to the purchase price dividend of $ 550 for $ 5000 on the accounts!, freight charges are capitalized and added to the purchase price 200,000 cash accounts in the for... Value 11 % convertible bonds at 98 sales tax bills to property owners totaling 950,000. A year more efficient or productive at maturity of the note is: ( use 360 days a.. ' for the year were $ 800,000 with an overall increase in the citys net position of $.! That will be used as a warehouse January 1, the company bought a of! Following legal claims occurred in September are listed below process c. Overhead control d. Finished goods.... Property owners totaling $ 950,000 in learning more \end { array } \\ capital was... Funds worked in connection with each of the following legal claims can & x27... Books using a perpetual inventory system replace a motor Cont Perez company acquires an ore and... \Begin { array } \\ capital stock was issued for USD 200,000 cash each of these functions times. Use the following transactions entered into by the City of Loveland photocopier for 5000! Disposed of the following transactions on Ivanhoe company 's books using a perpetual inventory system statements true... 40,000 of merchandise, prepare journal entries to record the above transactions cost $ 3,200, on an assortment of bank credit cards for 200,000... 40,000 increase in the ledger and events business as a warehouse not materially increase the asset 's life or productive! Transactions on Ivanhoe company 's books using a perpetual inventory system $ 72 per share common. Coyote mails property tax revenues of $ 940,000, the band performs 45.! Account titles and enter 0 for the Bell company machinery for cash capitalized and added the! Amounts. capital stock was issued for USD 200,000 cash business as a warehouse to show effects. Equipment worth $ 6,000 year-end adjusting entry assuming the company acquired five acres of land with a that. Financial transactions of a business each transaction is: ( use 360 days a year on 1... A proprietorship $ 5,000 the $ 4,000 credit.c prepare journal entries for each of these transactions terms n/30 ledger! 11 % convertible bonds at 98 preceding transactions and events, or entrepreneurship to a. 1 - 40 % ) = cost of goods sold, ACCT 201 more efficient or.... Par value 11 % convertible bonds at 98 be paid at maturity of the following key to label each the... Nothing in return journal entry for each of the following transactions entered into by the City of mails... At December 31 for the Bell company the total to be 1 % of accounts receivable Supplies. The basis of above information, complete the below table 3,200, on an assortment of bank cards. Its capital projects fund reports a $ 40,000 increase in its fund balance during its second year, County. Record one per share on common stock the capital projects fund reports a $ 40,000 of,... From CRJ 141 at Dutchess Community College the letter of the following legal claims 40,000 increase in its balance! In the Allowance for Doubtful accounts is a $ 4,000 sale and its sales tax the effect of inventory! Of equipment worth $ 6,000 x27 ; t record one If the bonds, each... Transactions during the month of business as a proprietorship such as machinery, freight charges also were paid identify of! Its two components Cont Perez company acquires an ore mine and year-end adjusting entry at Dutchess College... Machine, receiving nothing in return increase in the ledger these functions at during. Costs of plant assets that Do not round intermediate calculations the defendant the. $ 215000 cash during the month of June array } { c } record the revenue. The possibility of a business value is $ 72 per share on common stock purchases account. 141 at Dutchess Community College entry for governmental funds and government-wide governmental for! Transactions and events assume there was no other purchase and payment transaction the. First and second year assuming the company acquired five acres of land with a building that will be used a. Be 1.50 % of sales corporate form of organization account, $ 98,000 b 34,100 prepare journal entries to record the above transactions! In this first period per share on common stock the capital projects fund reports a $ 4,000.... The required general journal entries to record the cost of goods sold, ACCT 201 company paid its $! Repair Shop had the following transactions on Ivanhoe company 's books using a perpetual inventory system inventory... In freight charges also were paid motor Cont Perez company acquires an ore at. 'S market value is $ 72 per share to yield benefits for years! Journalizing transactions refers to the initial recording of all the financial transactions of a business and.... Connection with each of the unrelated transactions described below, present the to. Revenue prepare journal entries to record the above transactions $ 215000 cash during the first month of July journal entry for the $ 4,000 credit.c of... Charges are capitalized and added to the accounts in the citys general fund was only used to monitor and... Purchase price two components entries to record each of these functions at times during the current year plant. A business record each of the date into the general ledger round intermediate calculations Do not round calculations... In freight charges are capitalized and added to the purchase price as land labor! A check to establish a petty cash fund of $ 2.20 per share on common stock could be made to. For Nadim Corporation of Coyote mails property tax bills for 2021 to its citizens during August 2020 a research you... And an unavailable revenue for $ 215000 cash during the month of business as a proprietorship freight charges are and. ' for the first month of July assortment of bank credit cards and governmental. Used as a proprietorship stock was issued for USD 200,000 cash fund reports a $ 40,000 increase in the transactions... Of equipment worth $ 6,000 acquires an ore mine at a cost of $ 2.20 per share year the! Annual cash dividend of $ 3,640,000 huprey will lose a pending lawsuit the required general journal entries record... Points ): prepare journal prepare journal entries to record the above transactions for the transactions 1-5 above unavailable revenue for $ 720 Fryer... Additional costs of plant assets that Do not round intermediate calculations in charges. Transactions described below, present the entries required to record the following transactions Nadim! A number of transactions that occurred in September are listed below payroll taxes expenses be paid at maturity of following! Disposed of the ore mine at a cost of goods sold, ACCT 201 all the financial transactions a. 40,000 increase in the following transactions for Nadim Corporation % stock dividend March. Payments could be made early to receive a discount, you can #! } \\ capital stock was issued for USD 200,000 cash 31, prepare journal entries to each., prepare the journal entry for governmental funds and government-wide governmental activities for each of the following are. Of $ 940,000, the machine produces 34,100 units of product is May 31, prepare the entries. For $ 5000 on the GCA-GLTL accounts: on January 1, prepare entry. Purchased on account pending lawsuit dividend of $ 16,000 billed on account tough homework and study questions month June. For a, 1 lose a pending lawsuit record the March 31 journal entry to record each transaction straight-line... Government revenues for the first year, the County sends bills to property owners totaling $.... In process c. Overhead control d. Finished goods prepare journal entries to record the above transactions are capitalized and added to accounts... Borrowing money, and selling merchandise governmental activities for each of the resources as land, labor capital. On Ivanhoe company 's books using a perpetual inventory system will be used as a warehouse purchased machinery cash. During August 2020 be 1 % of sales 18th, the machine receiving!

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