Question

Problem 4-21 Record transactions and adjustments Lo 2,6,7 The following information applies to the questions displayed below] Use the horizontal model, or write the journal entry, for each of the following transactions and adjustments that a Issued 220,000 shares of $7-par-value common stock for $1.540,000 in cash. b Borrowed $510,000 from Oglesby National Bank and signed a 14% note due in two years. c. Incurred and paid $380,000 in salaries for the year. d. Purchased $710,000 of merchandise inventory on account during the year e. Sold inventory costing $620,000 for a total of $930,000, all on credit . Paid rent of $220,000 on the sales facilities during the first 11 months of the year g Purchased $160,000 h. Pald the entire $109,000 t. Incurred and paid utilities expense of $42,000 during the year i. Collected $865,000 in cash from cust k. At year-end, accrued $71,400 of interest on the note due to Oglesby National Bank L At year-end, accrued $20,000 of past-due December rent on the sales facilities of store equipment, paying $51,000 in cash and agreeing to pay the difference within 90 days owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previou s during the year for credit sales previously recorded Problem 4-21 Record transactions and adjustments LO 2. 6,7 Break Type here to search 6

Make a journal entry of credits and debits for the list on the first photo

Answer 1

		Debit	Credit
a	Cash	1540000
	Common stock		1540000
b	Cash	510000
	Note payable		510000
c	Salaries expense	380000
	Cash		380000
d	Merchandise inventory	710000
	Accounts payable		710000
e-1	Accounts receivable	930000
	Sales		930000
e-2	Cost of goods sold	620000
	Merchandise inventory		620000
f	Rent expense	220000
	Cash		220000
g	Equipment	160000
	Cash		51000
	Accounts payable		109000
h	Accounts payable	709000
	Cash		709000
i	Utilities expense	42000
	Cash		42000
j	Cash	865000
	Accounts receivable		865000
k	Interest expense	71400
	Interest payable		71400
l	Rent expense	20000
	Rent payable		20000