Question

Cintu is a large marketer and distributor of food service products serving restaurants, hotels, schools, hospitals, and other institutions. The tollowing transactions are typical of those that occurred in a recent year, but the amounts are simplified. a. Borrowed $89,500 from a bank, signing a short-term note payable. b. Provided $106,500 in service to customers, With $100,700 on account and the rest recelved in cash c. Purchased equipment for $187000 in cash. d Incurred and paid employee wages of $1,400. e. Recelved $875 on account from a customer. t Incurred and paid $4,600 cash for travel costs during the year g. Paid $9,000 cash on accounts payable h Incurred $30,300 In utillty expenses during the year, of which $23,700 was pald in cash and the rest owed on account. Required: 1. For each of the above transactions, prepare accrual basis journal entries. 2. Calculate the company's prellminary net income Complete this question by entering your answers in the tabs below Required Required For each of the above transactions, prepare accrual basis journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list ournal entry worksheet 1 2 3 45 67 8 Borrowing of $89,500 from a bank, signing a short-term note payable. Record the transaction. Note: Enter debits before credits. Record entry View general journal Clear entry Required1 Required 2 >

Please also calculate preliminary net income as part as the "required 2" tab.

Answer 1

1.

Transaction	General Journal	Debit	Credit
a	Cash	$89,500
	Note payable		$89,500
	( To record note payable)
b	Cash	$5,800
	Accounts receivable	$100,700
	Service revenue		$106,500
	( To record service revenue)
c	Equipment	$187,000
	Cash		$187,000
	( To record equipment purchase)
d	Wages expense	$1,400
	Cash		$1,400
	( To record wages expense)
e	Cash	$875
	Accounts receivable		$875
	( To record cash received from customer)
f	Travel expense	$4,600
	Cash		$4,600
	( To record travel expense)
g	Accounts payable	$9,000
	Cash		$9,000
	( To record payment to accounts payable)
h	Utilities expense	$30,300
	Cash		$23,700
	Accounts payable		$6,600
	( To record utilities expense)

2.

Income Statement
Service revenue	106,500
Expenses:
Wages expense	-1,400
Travel expense	-4,600
Utilities expense	-30,300
Net Income	$70,200

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