A | B | C | D | E | F | G | H | I | J |
2 | |||||||||
3 | a) | ||||||||
4 | |||||||||
5 | In the journal entry, the increase in assets is debited and an increase in liabilities is credited. | ||||||||
6 | |||||||||
7 | Thus the journal entries will be as follows: | ||||||||
8 | |||||||||
9 | Transaction | Accounts | Debit | Credit | |||||
10 | 1 | Cash | $40,000 | ||||||
11 | Accounts Receivable | $40,000 | |||||||
12 | |||||||||
13 | 2 | Prepaid Rent | $8,450 | ||||||
14 | Cash | $8,450 | |||||||
15 | |||||||||
16 | 3 | Inventory | $9,500 | ||||||
17 | Accounts Payable | $9,500 | |||||||
18 | |||||||||
19 | 4 | Cash | $30,000 | ||||||
20 | Common Stock | $30,000 | |||||||
21 | |||||||||
22 | 5 | Utilities Expense | $1,260 | ||||||
23 | Cash | $1,260 | |||||||
24 | |||||||||
25 | 6 | Long-term investments | $6,000 | ||||||
26 | Cash | $6,000 | |||||||
27 | |||||||||
28 | 7 | Cash | $4,200 | ||||||
29 | Notes Receivable | $25,000 | |||||||
30 | Land | $29,200 | |||||||
31 | |||||||||
32 | 8 | Plant and equipment | $8,275 | ||||||
33 | Cash | $8,275 | |||||||
34 | |||||||||
35 | 9 | Salary and Other Benefits Expense | $10,800 | ||||||
36 | Notes Payable | $10,800 | |||||||
37 | |||||||||
38 | 10 | Dividends | $3,000 | ||||||
39 | Cash | $3,000 | |||||||
40 | |||||||||
41 | b) | ||||||||
42 | |||||||||
43 | The beginning balance and journal entries are entered into T- account and after all the journal entries are entered, | ||||||||
44 | ending balance of all the accounts are calculated. | ||||||||
45 | For example, following t-accounts can be prepared as follows: | ||||||||
46 | |||||||||
47 | Cash | ||||||||
48 | Debit | Credit | |||||||
49 | Beg Bal | $7,000 | |||||||
50 | 1 | $40,000 | |||||||
51 | 2 | $8,450 | |||||||
52 | 4 | $30,000 | |||||||
53 | 5 | $1,260 | |||||||
54 | 6 | $6,000 | |||||||
55 | 7 | $4,200 | |||||||
56 | 8 | $8,275 | |||||||
57 | 10 | $3,000 | |||||||
58 | Ending Balance | $54,215 | |||||||
59 | |||||||||
60 | Accounts Receivable | ||||||||
61 | Debit | Credit | |||||||
62 | Beg Bal | $40,000 | |||||||
63 | 1 | $40,000 | |||||||
64 | 2 | ||||||||
65 | Ending Bal | $0 | |||||||
66 | |||||||||
67 | Simillarly other t-accounts can be prepared. | ||||||||
68 |
The following information is provided for Pepper's Eatery at December 31, 2018. Adjusted Trial Balance Accounts...
The following information is provided for Pepper's Eatery at December 31, 2018. Adjusted Trial Balance Accounts payable Accounts receivable Cash Common stock (par S1) Inventory Land Long-term notes payable Prepaid expenses Plant & Equipment Retained earnings Supplies Short-term notes payable Short-term investments Utilities payable S32,500 40,000 7,000 7,680 2,500 40,000 2,000 3,340 17,200 16,200 1,500 54,700 2,800 1,260 Pepper's entered into the following transactions during January 2019: 1. Received $40,000 from customers for services provided in December 2018. 2. Paid...
The following information is provided for Pepper's Eatery at December 31, 2018. Adjusted Trial Balance Balance $32,500 40,000 7,000 7,680 Accounts payable Accounts receivable Cash Common stock (par $1) Inventory Land Long-term notes payable Prepaid expenses Plant & Equipment Retained earnings Supplies Short-term notes payable 40,000 2,000 3,340 17.200 16,200 1,500 54,700 2,800 Short-term investments Utilities payable 1,260 Pepper's entered into the following transactions during January 2019: 1. Received $40,000 from customers for services provided in December 2018. 2. Paid...
The following information is provided for Pepper's Eatery at December 31, 2018. Adjusted Trial Balance Accounts payable Accounts receivable Cash Common stock (par $1) Inventory Land Long-term notes payable Prepaid expenses Plant & Equipment Retained eanings Supplies Short-term notes payable Short-term investments Utilities payable Balance S32,500 40,000 7,000 7,680 2,500 40,000 2,000 3,340 17,200 16,200 1,500 54,700 2,800 1,260 Pepper's entered into the following transactions during January 2019 eived $40,000 from customers for services provided in December 2018. 2. Paid...
The following information is provided for Pepper's Eatery at December 31, 2018. Adjusted Trial Balance Accounts payable Accounts receivable Cash Common stock (par S1) Inventory Land Long-term notes payable Prepaid expenses Plant& Equipment Retained earnings Supplies Short-term notes payable Short-term investments Utilities payable $32,500 40,000 7,000 7,680 2,500 40,000 2,000 3,340 17,200 16,200 1,500 54,700 2,800 1,260 Pepper's entered into the following transactions during January 2019 1. Received $40,000 from customers for services provided in December 2018. 2. Paid $8.450...
Prepare a journal entry Pepper's entered into the following transactions during January 2019 1. Received $40,000 from customers for services provided in December 2018 2. Paid $8,450 in advance for 3 months of rent. 3. Purchased inventory of $9,500 on account. 4. Issued 10,500 shares of common stock for $30,000. 5. Paid $1,260 for utilities incurred in December 2018. 6. Purchased US Bonds for $6,000 redeemable 1/31/22. 7. Sold land in exchange for $4,200 cash and a $25,000 note due...
The following account balances are provided for Green Goblin Corporation at December 31 2018: Title Accounts payable Accounts receivable Bank loan due June 1, 2020 Cash Commissions payable Salaries and wages payable Common stock (no par) Equipment (net) Interest payable Interest receivable Investments Prepaid expenses Retained eamings Supplies Unearmed revenue Balance 65,000 90,000 154,000 45,000 12,000 16,000 200,000 318,750 1200 450 33,000 28,000 71,700 25,000 32,000 All January 2019 transactions follow: 1. Provided services on account for a total of...
At December 31, 2018, Smole Corporation's adjusted trial balance shows the following balances: (Click the icon to view more information.) EEB (Click the icon to view the balances.) Requirement 1. Prepare the current liability section of Smole Corporation's balance sheet at December 31, 2018. (If applicable, combine the Notes Payable on one line of the statement.) Data Table Smole Corporation Balance Sheet (partial) December 31, 2018 Accrued Warranty Payable $65,000 Account Amount 7% Notes Payable, due April 30, 2019 165,000...
Laker Incorporated's fiscal year-end is December 31, 2018. The following is an adjusted trial balance as of December 31 Credit Accounts Cash Supplies Prepaid Rent Accounts Payable Notes Payable Common Stock Retained Eamings $ 11,300 26,500 $ 2,300 23,000 36,500 8,300 Service Revenue Salaries Expense 54,700 19,300 12,300 9,300 Rent Expense Utilities Expense Totals $124,800 $124,800 Required: 1. Prepare the necessary closing entries. (If no entry is required for a transaction/levent, select "No journal entry required" in the first account...
4 The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its fiscal year, included the following account balances. Manufacturing's 2018 financial statements were issued on April 1, 2019 Accounts receivable Accounts payable Bank notes payable Mortgage note payable $ 103,000 41,000 658,000 1,345,000 Other information: a. The bank notes, issued August 1, 2018, are due on July 31, 2019, and pay interest at a rate of 12%, payable at maturity. b. The mortgage note...
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its fiscal year, included the following account balances. Manufacturing’s 2018 financial statements were issued on April 1, 2019. Accounts receivable $ 98,000 Accounts payable 38,800 Bank notes payable 638,000 Mortgage note payable 1,290,000 Other information: The bank notes, issued August 1, 2018, are due on July 31, 2019, and pay interest at a rate of 9%, payable at maturity. The mortgage note is due on...