Question

M. - N O P Q R S T U a 4 Credit Debit 28,250 28,250 AB E F HT Solution: 5 Part A: 6 Jelly World, Inc., is a purveyor of artisan jellies and is known for its high quality Journal Entries: 7 merchandise. The business started up in January 2015 and has been quite 1 Cash 8 successful. Complete the Journal Entries for all 2019 transaction and adjustment Accounts Receivable 9 information listed below. You do not have to date your journal entries. Be sure to 10 sum the debit and credit columns to confirm they balance. The first journal entry 11 has been completed for you. (15 points-graded for accuracy and format, including 12 proper use of Excel spreadsheet links and formulas) 13 14 There is no Check Figure for Part A. 15 16 Transaction and Adjustment Data: 17 1 Collected the $28,250 of accounts receivable due to them at year end 2018. 18 2 Paid the $297,899 owed on account at year end 2018. 19 3 Paid the interest of $24,975 that was payable at year end 2018. 4 Made a payment on the mortgage note of $11,000. 5 Paid $5,292 to renew their annual insurance policy on March 1, 2019. 22 6 Made a payment on the long-term note of $83,000. 23 7 Issued 1,600 shares of Common Stock on March 1, 2019 for $10 per share. 24 8 Paid the taxes owed of $49,885 at year end 2018. 9 Purchased additional Furniture & Equipment on April 1, 2019 costing $64,440 due to increased shipping activities for their growing online presence. 27 10 Purchased inventory during the year that cost $1,678,222. The company owed 28 $396,430 on these purchases at year end 2019. 11 Purchased a new computerized sales system on June 30, 2019 for $74,600 in 30 cash. The system has a useful economic life of 4 years and will be depreciated 31 monthly using the straight line method. The system has a salvage value of 32 12 Sales of artisan jellies for 2019 were $2,645,320. At December 31, 2019, 33 $52,832 of this amount was still listed as receivable. Part A. JEs & Background Info Part B. T-Accts & Acct Equation Part C. Trial Bal & Closing JE Part D. Multiple-Step ... + 20 25 26

Answer 1

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Event	Journal Entries	Debit	Credit
1	Cash	$            28,250
	Accounts Receivable		$         28,250
2	Accounts Payable	$          297,899
	Cash		$       297,899
3	Interest Payable	$            24,975
	Cash		$         24,975
4	Mortgage Note payable	$            11,000
	Cash		$         11,000
5	Prepaid Insurance	$               5,292
	Cash		$            5,292
6	Note Payable	$            83,000
	Cash		$         83,000
7	Cash	$            16,000
	Common Stock		$         16,000
8	Income Tax Payable	$            49,885
	Cash		$         49,885
9	Furniture and Equipment	$            64,440
	Accounts Payable		$         64,440
10	Inventory	$      1,678,222
	Cash		$   1,281,792
	Accounts Payable		$       396,430
11	Computer Equipment	$            74,600
	Cash		$         74,600
12	Cash	$      2,592,488
	Accounts Receivable	$            52,832
	Sale		$   2,645,320
13	Cost of Goods Sold	$      1,689,576
	Inventory		$   1,689,576
14	Supplies Inventory	$               4,860
	Cash		$            4,860
15	Salaries Expense	$          137,242
	Interest Expense	$            20,745
	Salaries Payable		$            7,058
	Interest Payable		$         20,745
	Cash		$       130,184
16	Depreciation Expense	$            21,000
	Accumulated depreciation-Building		$         21,000
	($630,000/30 Years)
	Depreciation Expense	$            14,166
	Accumulated depreciation-Furniture and Equipment		$         14,166
	($22,500/5)+($64,440/5*9/12)
	Depreciation Expense	$               8,325
	Accumulated depreciation-Computer Equipment		$            8,325
	($74,600-$8,000)/4*6/12)
17	Insurance Expense	$               5,234
	Prepaid Insurance		$            5,234
	($5,292/12*10)+$824
	Supplies Expense	$               4,731
	Supplies Inventory		$            4,731
	($4,860+$677-$806)
18	Income Tax Payable	$            80,500
	Cash		$         80,500
19	Dividend
	Cash	$               3,000
			$            3,000
20	Allowance for doubtful accounts	$                  634
	Accounts Receivable		$               634
21	Bad Debt Expense	$                  479
	Allowance for doubtful accounts		$               479
	Beginning Accounts Receivable		$         28,250
	Less: Paid		$       (28,250)
	Add: Credit Sale		$         52,832
	Less: Write off		$             (634)
	Unadjusted ending balance		$         52,198
	Ending Allowance for doubtful account balance (2%)		1,044
	Balance of Allowance - Beginning		$               565
	TO be posted	$1,044-$565	$               479
22	Income Tax Expense	$          156,203
	Income Tax Payable
	(Net Income $743,822*21%)