Question

Complete the Journal entries below

1 Your company has just made a sale for $365,000. The Gross Margin on this sale was 40%. The customer is paying you $180,000 now and the rest at some later date.

Record these activities into the journal entry format. Put Dec, 31, 2021 as the date.

2, You have purchased a building for $635,000, and you paid cash.

Record these activities into the journal entry format. Put Dec, 31, 2021 as the date.

3, Pay an attorney for work that she will do at some later date. Pay her $70,000.

Record these activities into the journal entry format. Put Dec, 31, 2021 as the date.

4. Your customers are paying you $650,000 for work that you will do at some later date.

Record these activities into the journal entry format. Put Dec, 31, 2021 as the date.

5. Your customers that owed you are now paying you, $200,000.

Record these activities into the journal entry format. Put Dec, 31, 2021 as the date.

Answer 1

journal entries:

sno	date	account titles	debit	credit
1	dec 31 2021	cash a/c	180,000
		accounts receivable	185,000
		.........To sales revenues		365,000
		(to record sales)
	dec 31 2021	cost of goods sold	219,000
		........To inventory a/c		219,000
		(amount = 365,000 *(1-0.40 margin)) (to record cost of goods sold)
2.	dec 31 2021	buildings a/c	635,000
		............To cash a/c		635,000
3	dec 31 2021	Prepaid attorney fees a/c	70,000
	.	...........To cash a/c		70,000
4.	dec 31 2021	cash a/c	650,000
		.............To unearned revenue a/c		650,000
5	dec 31 2021	cash a/c	200,000
		..........To accounts receivable a/c		200,000