Question

2. Your company is open Monday-Friday and pay your employees Monday for the work done the prior week. The weekly payroll is $5,000 and the end of March ends on a Wednesday. Therefore, the employees worked for 3 days in March (increase expense) that they haven't been paid for yet (increase liability). On March 31, the journal entry is:

3. One month passes, so you use (increase expense) 1 month's worth of the $1,200 6-month cost of your car insurance (decrease asset). The journal entry is:

7. You pay your employees $2,000 cash for hours they worked. The journal entry is:

8. Your company is open Monday-Friday and pay your employees Monday for the work done the prior week. The weekly payroll is $5,000 and the end of March ends on a Wednesday. Therefore, the employees worked for 3 days in March that they haven't been paid for yet. On March 31, the journal entry is:

11.

a. Your company is a retailer, like Macy's. The customer pays you $3,500 in cash for merchandise sold to them in the store. The journal entry is:

b. The inventory that you just sold only cost you $2,000. The journal entry is:

12. You pay $500 cash to have the company's furnace repaired. The journal entry is:

13. You pay $1,500 cash for advertising in today's newspaper. The journal entry is:

14. You paid cash  for dividends to the owners of $900. The journal entry is:

15. You used $300 worth of office supplies that you purchased earlier. The journal entry is:

16. You get the utility bill of $500 for electricity used last month and will pay for it on the due date. The journal entry is:

17. One month passes, so you use  1 month's worth of the $1,200 6-month cost of your car insurance. The journal entry is:

18. You pay $800 cash for office supplies that you'll use in the future. The journal entry is:

19. You pay $1,200 cash in advance for your car insurance for the next 6 months. The journal entry is:

20. You mowed a lawn for a customer and billed the customer $100 that is due within the next 30 days. The journal entry is:

Answer 1

Credit Debit 3,000 o 2) Account Title & Explanation Salaries &Wages Expense (5000/5*3) Salaries & Wages Payable ((To record accrued salaries & wages) 3,000 200 Insurance expense (1200/6*1) Prepaid insurance (To record expired insurance) 200 O ON min 1000 OO Nm Salaries expense 2,000 Cash 2,000 (To record salaries paid) 1 3,000 2 8) 3 Salaries & Wages Expense (5000/5*3) Salaries & Wages Payable ((To record accrued salaries & wages) 3,000 -4 =6 11 a) 3,500 in 10 00 7 Cash Sales Revenue (To record merchandise sold) 3,500

40 b) 2,000 41 Cost of Goods Sold Merchandise Inventory (To record cost of Merchandise sold) 2,000 42 43 44 12) 45 500 Repairing expense Cash (To record cash paid for furnance repaired) 500 46 47 48 13) 49 500 Advertising expense Cash (To record cash paid for Advertising) 500 50 51 900 52 14) 53 Dividends Cash (To record dividend paid) 900 54 55 300 56 15) 57 Supplies expense Supplies (To record supplies consumed during the Year) 300 58

500 Utility expense Utility Payable (To record accrued utility bill) 500 200 60 16) 61 62 63 64 17) 65 66 67 68 18) 69 70 71 72 19) 73 Insurance expense (1200/6*1) Prepaid insurance (To record expired insurance) 200 800 Supplies Cash (To record purchase of Supplies) 800 1,200 Prepaid Insurance Cash (To record cash paid in advance for Insurance) 1,200 74 75 76 20) 77 100 Accounts receivable Service Revenue (To record services provided and billed) 100 78 79