Question

How to make journal entries for these.

5. SOLD WIDGETS FOR CASH IN THE AMOUNT OF $100,000 THE COST WAS 50%.

6. AT JANUARY 31 EMPLOYEES EARNED $20,000 THAT WILL NOT BE PAID UNTIL THE FEBRUARY 1 PAYROLL

7. THE DEPRECIATON EXPENSE NEEDS TO BE RECORDED FOR THE $200,000 EQUIPMENT - ASSUME A FIVE YEAR LIFE (ONLY ONE MONTH DEPRECIATION)

ASSUME THE EQUIPMENT PURCHASE IN JANUARY WAS MADE AT MONTH END - SO NOT DEEPREIATED)

8. PAID CASH OF $350,000 TO VENDORS FOR INVENTORY  PREVIOUSLY PURCHASED ON ACCOUNT

9. PURCHASED $500,000 OF INVENTORY ON ACCOUNT

10.  PAID CASH OF $350,000 TO VENDORS FOR INVENTORY PREVIOUSLY PURCHASED ON ACCOUNT

11. RECORD THE PURCHASE OF EQUIPMENT FOR $500,000 BY SIGNING A NOTE (ASSUME PURCHASE JAN 31-NO DEPRECIATION OR INTEREST NECESSARY FOR THE MONTH)

Answer 1

Journal Entries
Date	Particulars	Debit	Credit
5	a)
	Cash Account ………….Dr	$ 100,000.00
	To Sales		$      100,000.00
	(Being the sale of WIDGETS for Cash)
	b) Optional
	Purchase Control Account…Dr	$    50,000.00
	To Inventory		$        50,000.00
	(Being the move out of inventory)
6	Salary Expense Account………..Dr	$    20,000.00
	To Salary Outstanding Account		$        20,000.00
	(Being the salary due for the month of JAN)
7	No entry required since Equipment was purchased at end of month
	If equipment was purchased at the beginning of month, then depreciation entry will be
	Depreciation Equipment Account…..Dr	$      3,333.33
	To Accumulated Depreciation - Equipment		$          3,333.33
	(being the depreciation for one month = (200000/5)/12
8	Vendors Account ………..Dr	$ 350,000.00
	To Cash		$      350,000.00
	(Being the cash payment to vendors towards previous purchase)
9	Inventory Account………….Dr	$ 500,000.00
	To Vendors Account		$      500,000.00
	(Being the purchase of inventory on account)
10	Vendors Account ………..Dr	$ 350,000.00
	To Cash		$      350,000.00
	(Being the cash payment to vendors towards previous purchase)
11	Equipment Account…………Dr	$ 500,000.00
	To Note Payable		$      500,000.00
	(Being the purchase of equipment by signing a note)