Question

2) Identify cost of goods sold f on October 18 and 26 Date Item Oct. 1 Beginning Inventory 10 the profit of the month. 3) Journalize the transactions Quantity (Units) Unit Price 7 Sales 18 Purchase 26 Sales $68 65 90 67 91 5 IV. (40') Journalize the following transactions according to the descriptions and requirements: 1. In March, Smith Co. completed the following transactions: 1 Received $10,000 contribution from Bill Alone in exchange for capital. 12 21 27 Paid utilities expense of $400. Purchased equipment on account, $2,400. The owner, Bill Alone, withdrew $500 cash from the business. Performed services for a client on account, $3,400. Journalize each of the above transactions. 2. KOOL Co. purchases and installs a machine on Jan. 1, 2013 at a cost of $109,000. Straight depreciation is taken each year assuming a seven-year life and a salvage cost of $4,000. The machin disposed on Jun 29, 2017. 1) Journalize the depreciation cost of the Year 2013 and 2017. 2) On Ju 2017 the machine is sold for $45,500 for cash. Journalize the transaction. 3. Journalize the transactions for TED Co., assuming the company uses direct write-off method t with the uncollectible receivables Sold merchandise No. 123 to a client A for $3,600 on credit term 2/10, n/30, at the of $3,000. Oct. 5 15 Received payment from the client A 20 Received $1,800 which was written off on Jan. 5, from client B

Answer 1

IV.
1	Date	General journal				Debit	Credit
	July 1.	Cash				10000
		Capital					10000
		(received cotribution from Bill)
	July 5.	Utility expense				400
		Cash					400
		(Paid utilities expese)
	July 12.	Equipment				2400
		Accounts payable					2400
		(Purchased equipment on account)
	July 21.	Drawings				500
		Cash					500
		(Bill withdrew cash)
	July 27.	Accounts receivable				3400
		Service revenue					3400
		(Performed services on account)
2	Depreciation expense using straight line method=(Cost - Residual value)/Useful life=(109000-4000)/7=$ 15000
1)	Year	General journal				Debit	Credit
	2013	Depreciation expense				15000
		Accumulated depreciation					15000
	2017	Depreciation expense			15000*(6/12)	7500
		Accumulated depreciation					7500
		(depreciation from Jan-June-6 months)
2)	Date	General journal				Debit	Credit
	2017
	June 29.	Cash				45500
		Accumulated depreciation			(Note:1)	67500
		Machine					109000
		Gain on sale of machine					4000
		(Machine sold)
	Note:1
	Accumulated depreciaton from 2013 to 2017
	2013	15000
	2014	15000
	2015	15000
	2016	15000
	2017	7500
	Total	67500