Question

1. During October, the company had several transactions. Prepare journal entries for the transactions below and post them to the t-accounts. a. Sold merchandise with an original cost of $73,000 on account for a total selling price of $170,000 DR Accounts Receivable CR Revenue 170,000 170,000 DR COGS CR Inventory 73,000 73,000 I b. Purchased merchandise inventory on account from various suppliers for $92,600. DR Inventory CR Accounts Payable 92,600 92,600 c. Paid rent of $23,500 for the month of October. DR PP&E CR Cash 23,500 23,500

Answer 1

1) Journal Entries

a) COGS Dr 73000

Inventory 73000

a) Account Receivable Dr 170000

Revenue 170000

b) Inventory dr 92600

account Payable 92600

c) Rent Dr 23500

Cash 23500

d) salary Expense Dr 38700

Salary Payable Dr 2500

To cash 41200

e) Cash Dr 68300

Account Receivable 68300

f) Account Payable Dr 77900

Cash 77900

g) Misc. expenses Dr 6400

To cash 6400

2) a) Prepaid insurance Dr 100

To insurance exp 100

b) Salary Expense Dr 3200

To Saklary Payable 3200

c) Interest Expense Dr 50

To Interest Payable 50