Question

on October 10 and Is Date em Oct. 1 Beginning Inventory Ceaniity is Price 4 Purchase IS 20 10 67 91 IV. 40) Journalize the following transactions according to each 1. Now. 1, purchased supplies on account, 5600 2. Now. 3, bought a one-year insurance contract for $3,600 3. Nox. 3, returned $6,000 of the merchandise purchased on Oct. 26. (Oct 26, purchased $12,000 of merchandise on eredit terms of 3/10, n/30, FOB shipping point) 4. Nov. 6, made the corresponding payment for the purchase on Oct 26 and a $200 for freight in. S. Nov. 11, wrote off $900 owed by Moore's Ltd. The 6. Nov. 20, received $2,000 from Fossil Oil that was written off on Apr. 10 cempany uses allowance method 7. Nov. 30, prepared adjusting entries: 1) insurance expense (the insurance was bought on Nov. 3) 2) the beginning balance of supplies is $300, and at the end of the Nov, the physical check showed a $400 supplies on hand, 3) accrued salaries $900; 4) depreciation for truck, which was bought on Mar. 10 for $5,800 with an expected residual value of $400 and a useful life of 6 years (the company uses straight line method). S. Nov. 30, prepared the closing entries: I) Revenues: $85,000, 2) wage expenses: $12,000, 3) utility expense: s800; 4) interest expense: $200; 5) cost of merchandise sold: $60,000 9. Dec. 5, a furniture acquired at a cost of $4,000 is fully depreciated and discarded. 10. Dec. 10, petty cash fund is increased from $200 to $300

Answer 1

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	Date	Account	Debit	Credit
	Nov 1	Supplies	$           600
	Nov 1	Accounts Payable		$           600
	Nov 3	Prepaid Insurance	$        3,600
	Nov 3	Cash		$        3,600
	Nov 5	Accounts Payable	$        6,000
	Nov 5	Merchandise Inventory		$        6,000
	Nov 6	Accounts Payable	$        6,000
	Nov 6	Merchandise Inventory		$           180	6000*3%
	Nov 6	Cash		$        5,820
	Nov 11	Allowance for Doubtful Accounts	$           900
	Nov 11	Accounts Receivable		$           900
	Nov 20	Accounts Receivable	$        2,000
	Nov 20	Allowance for Doubtful Accounts		$        2,000
	Nov 20	Cash	$        2,000
	Nov 20	Accounts Receivable		$        2,000
1.	Nov 30	Insurance Expense	$           300		3600/12
	Nov 30	Prepaid Insurance		$           300
2.	Nov 30	Supplies Expense	$           500		300+600-400
	Nov 30	Supplies		$           500
3.	Nov 30	Salaries and Wages Expense	$           900
	Nov 30	Salaries and Wages Payable		$           900
4.	Nov 30	Depreciation Expense	$             75		(5800-400)/72
	Nov 30	Accumulated Depreciation-Truck		$             75
1.	Nov 30	Revenue	$     85,000
	Nov 30	Income Summary		$     85,000
		(Being Revenue account closed)
	Nov 30	Income Summary	$     73,000
	Nov 30	Wages Expense		$     12,000
	Nov 30	Utility Expense		$           800
	Nov 30	Interest Expense		$           200
	Nov 30	Cost of Merchandise Sold		$     60,000
	Dec 5	Accumulated Depreciation-Furniture	$        4,000
	Dec 5	Furniture		$        4,000
	Dec 10	Petty Cash	$           100
	Dec 10	Cash		$        4,000