Question

A. Sold widgets on account in the amount of $220,000. The cost was 50%.

B. At January 31 employees earned $20,000 that will not be paid until the February 1 payroll

C. The Depreciation 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 depreciated.

D. Record Dividends paid in the amount of $3000

E. Paid cash of $350,000 to vendor for inventory previously purchased on account.

F. Paid February rent of $5000 in January.

Answer 1

Journal Entries
No.	Account	Dr.	Cr.
A	Accounts Receivable Dr	$2,20,000.00
	To Sales		$2,20,000.00
	(Being sold widgets on account for $220000)
	COGS Dr	$1,10,000.00		=220000*50%
	To Inventory		$1,10,000.00
	(Being sold widgets with cost $110000)
B	Salary Expense Dr	$20,000.00
	To Salary Payable		$20,000.00
	(Being salary payable for January.)
C	Depreciation Dr	$3,333.33		=200000/5/12
	To Equipment		$3,333.33
	(Being Depreciation for January.)
D	Dividend Dr	$3,000.00
	To Cash		$3,000.00
	(Being Dividends paid.)
E	Accounts Payable Dr	$3,50,000.00
	To Cash		$3,50,000.00
	(Being paid to vendors.)
F	Prepaid Rent Dr	$5,000.00
	To Cash		$5,000.00
	(Being rent paid for February.)