Question

Question 1: Georgia Supply Corporation, a merchandising firm, prepared the following trial balance as of October 1: Debit Credit Cash $150,000 Account Receivable 21,540 Inventory 32,680 Land 15,400 Building 14,000 Account Payable $9,190 Mortgage Payable 23,700 Common Stock 140,000 Retained Earnings 60,730 Totals $233,620 $233,620 Georgia Supply engaged in the following transactions during October 2017. The company records inventory using perpetual system. Oct. Sold merchandise on account to the Tracker Corporation for $12,000: Terms 2/10, n/30. Tracker paid $350 freight on goods. Merchandise cost $6,850. Oct. 5 Purchased inventory costing $10,250 on account; terms n/30 Oct. 7 Received payment from Tracker for goods shipped October 1. Oct. 15 The payroll paid for the first half of October was $22,000. (Ignore payroll taxes) Oct. 18 Purchased a machine for $8,600 cash. 22 Declared a dividend of 0.45 per share on 45,000 shares of common stock outstanding Oct. 27 Purchased building and land for $125,000 in cash and a $225,000 mortgage payable, due in 30 years. The land was appraised at $150,000 and the building at $300,000 Oct. Required: a) Prepare journal entries for each transaction and record the October transactions directly to the T-accounts.

Answer 1

Part 1

XIA 5 2020-09(3) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in C29 X х Equipment A B E F H 1 J с General Journal 3 D Debit 12,000 Credit 4 Date Oct 1 Accounts receivable Sales revenue (To record sales revenue on account.) 5 12,000 Beg. Oct 7 Cash 150,000 11,760 6 7 350 Oct 1 22,000 Oct 15 8,600 Oct 18 125,000 Oct 27 8 Oct 1 6,850 9 Cost of goods sold Inventory (To record cost of goods sold.) 6,850 End Bal 5,810 10 12 350 Oct 1 Delivery expenses Cash (To record fright paid for sold) 13 Land 15,400 116,667 132,067 Beg. Oct 27 End Bal 350 14 15 16 10,250 Dividends 17 Oct 5 Inventory Accounts payable (To record purchased of inventory on account) 10,250 18 Beg. Oct 22 End Bal 20,250 20,250 19 20 11,760 240 21 Salaries expense Oct 7 Cash (12000-240) Sales Discounts (12000*2%) Accounts receivable (To record cash received from customer.) 22 12,000 23 Beg. Oct 15 End Bal 22,000 22,000 24 25 22,000 26 Oct 15 Salaries expense Cash (To record salaries expense paid.) 22,000 27 28 Accounts Payable 9,190 Beg. 10,250 Oct 5 Activate Windows 19,440 End Bal Go to Settings to activate Windows. 29 8,600 30 Oct 18 Equipment Cash Sheet16 Sheet17 8.600 Sheet18 Sheet19 Sheet20 Sheet21 Sheet22 Sheet23 Sheet24 + READY 3 + + 100% 04:54 i Search the web and Windows O ENG US 25-09-20

XIA 5 2020-09(3) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in C44 : X х fx A B с D E F G H I J 18 (To record purchased of inventory on account) Oct 22 End Bal 20,250 20,250 19 20 11,760 240 Salaries expense 21 22 23 Oct 7 Cash (12000-240) Sales Discounts (12000*2%) Accounts receivable (To record cash received from customer.) 12,000 Beg. Oct 15 End Bal 22,000 22,000 24 25 22,000 26 Oct 15 Salaries expense Cash (To record salaries expense paid.) 22,000 27 Accounts Payable 9,190 Beg. 10,250 Oct 5 19,440 End Bal 28 29 8,600 30 Oct 18 Equipment Cash (To record purchase of equipment on cash.) 8,600 31 Common stock 140,000 Beg. 32 33 20,250 34 Oct 22 Dividends Dividend payable (To record Directors declared Cash dividend.) (45000*0.45) 20,250 140,000 End Bal 35 36 37 38 39 Oct 27 Land ((150000/450000) *350000) 116,667 Building ((300000/450000) * 350000) 233,333 Cash Mortgage payable (To record acquisition of land and building.) (Payment = 125000 + 225000 = 350000) (Total of assest = 150000+300000=450000) 125,000 225,000 40 41 42 43 44 45 Activate Windows Go to Settings to activate Windows, Sheet16 Sheet17 Sheet18 Sheet19 Sheet20 Sheet21 Sheet22 Sheet23 Sheet24 READY + + 100% 1 Search the web and Windows O ENG US 04:54 25-09-20

Part 2

XI 5 2020-09(3) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in F3 : fi F Н. 1 J K L M N o P Q R s T U U V w х Y Z 3 4 5 Cash 150,000 11,760 Beg. Oct 7 Common stock 140,000 Beg. Accounts receivable 21,540 12,000 12,000 Oct 7 Beg. Oct 1 Inventory 32,680 10,250 6,850 Oct 1 Beg. Oct 5 6 350 Oct 1 22,000 Oct 15 8,600 Oct 18 125,000 Oct 27 7 140,000 End Bal 8 A 9 End Bal 5,810 End Bal 21,540 End Bal 36,080 Ir Retained earnings 60,730 Beg. 10 11 Equipment 12 60,730 End Bal Land 15,400 116,667 132,067 Beg. Oct 27 End Bal 13 Building 14,000 233,333 247,333 Beg. Oct 27 End Bal Beg. Oct 18 End Bal A 8,600 8,600 Honolulu lomozomWCEDONI 14 D 15 Sales revenue Beg. 12,000 Oct 1 12,000 End Bal 16 Dividends Sales discounts Cost of goods sold 17 R 18 Beg. Oct 22 End Bal Beg. Oct 7 End Bal 20,250 20,250 240 Beg. Oct 1 End Bal 6,850 6,850 19 240 20 Salaries expense Delivery expenses 21 22 23 Beg. Oct 15 End Bal Beg. Oct 1 End Bal 22,000 22,000 D 350 350 24 25 26 27 Accounts Payable 9,190 Beg. 10,250 Oct 5 19,440 End Bal Dividend payable Beg. 20,250 Oct 22 20,250 End Bal Mortgage payable 23,700 Beg. 225,000 Oct 27 248,700 End Bal 28 29 30 Activate Windows Go to Settings to activate Windows. Sheet16 Sheet17 Sheet18 Sheet19 Sheet20 Sheet21 Sheet22 Sheet23 Sheet24 + 1 READY 3 + + 100% i Search the web and Windows O ENG US 04:56 25-09-20

Part 3

Company name
Trial balance
Oct 31, 2017
Account title	Debit	Credit
Cash	5,810
Accounts receivable	21,540
Inventory	36,080
Land	132,067
Building	247,333
Equipment	8,600
Accounts Payable		19,440
Dividend payable		20,250
Mortgage payable		248,700
Common stock		140,000
Retained earnings		60,730
Dividends	20,250
Sales revenue		12,000
Sales discounts	240
Cost of goods sold	6,850
Salaries expense	22,000
Delivery expenses	350
Totals	501,120	501,120