1. Record the receipt of $4,750 in cash and checks from a door-to-door campaign.
2. Record the payment of $1,500 cash for employee wages this month.
3. Record the payment of $1,050 cash on a short-term loan from the bank (ignore interest).
4. Record the purchase of $5,200 worth of new toy supplies from a large toy manufacturer, paying $2,200 cash and signing a short-term note for $3,000.
5. Record the donation made by the manufacturer of an additional $3,800 of toy supplies.
1.
Journal
Date | Account title | Debit | Credit |
a. | Cash | 4,750 | |
Donation revenue | 4,750 | ||
b | Wages expense | 1,500 | |
Cash | 1,500 | ||
c | Short term loan | 1,050 | |
Cash | 1,050 | ||
d | Toy supplies | 5,200 | |
Cash | 2,200 | ||
Note payable | 3,000 | ||
e | Toy supplies | 3,800 | |
Donation revenue | 3,800 |
2.
Net income = Donation revenue - Expenses
= (4,750 + 3,800) - 1,500
= $7,050
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Supplies; Prepaid Insurance; Land; Building; Furniture; Accounts
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first, then credits. Exclude explanations from journal
entries.)
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121; Prepaid Insurance, 131; Land, 141; Building, 151;
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