Question

Please complete T accounts

JOURNAL ENTERIES

BEGINNING BALANCES

CASH 10000

RETATINED EARNINGS 10000

1) ACQUIRED 50K FROM THE ISSUE OF COMMON STOCK

                TYPE: ASSET SOURCE

1 CASH                                                                                                  50000

                COMMON STOCK                                                                             50000

2) ACC 211 won a big contract with the state to service all pencils in the department. They are required to come in each morning to sharpen each worker’s pencil. The state paid ACC 211 $350,000 cash for work completed during the year and promised to pay the balance of $350,000 in the coming year

TYPE: ASSET SOURCE

2 CASH                                                                  350000

   RECEIVABLES                                                  350000

                SERVICE REVENUE                                                           700000

3. ACC 211 has noticed its accounts receivable balance is growing more than desired and some collection problems exist. It appears that uncollectible expense is approximately 3 percent of total credit sales. ACC 211 has decided that it will starting this year, adopt the allowance method of accounting for uncollectible accounts. ACC 211 uses an adjusting entry to recognize the uncollectible account expense on its credit sales to date.

TYPE: CLAIMS EXCHANGE

3 ALLOWANCE FOR DOUBTFUL                   21000

                UNCOLLECTABLE ACCOUNT                         21000

4. ACC 211 bought equipment for $6,000 on January 1st. The furniture had a 4% discount. Freight cost amounted to $1,600. ACC 211 had to hire a specialist to adjust the equipment before use. He paid the specialist $1,500. Insurance expense for the equipment was $500 annually. The equipment has a useful life of 10 years with salvage value of $500. The straight-line method was used as the method of depreciation. All of these expenses were paid in cash.

TYPE: ASSET EXCHANGE

5A Record in general journal the acquisition of the furniture

5a Equipment                                                8860   

            Cash                                                               8860

5B Record in general journal format the depreciation expense for the first year using straight line

5b Depreciation                                 836     

            Equipment                                         836

5C Record in general journal format, any expense not capitalized

Type: Asset Use AU

5c Insurance Expense Accounts                  500

            Cash                                                               500

Answer 1

CASH
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
OPENING BALANCE	10,000	EQUIPMENT	8,860
COMMON STOCK	50,000	Insurance Expense Accounts	500
SERVICE REVENUE	350,000	CLOSING BALANCE	400,640
	410,000		410,000
COMMON STOCK
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
CLOSING BALANCE	50,000	CASH	50,000
	50,000		50,000
SERVICE REVENUE
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
CLOSING BALANCE	700,000	CASH	350,000
		RECEIVABLES	350,000
	700,000		700,000
ALLOWANCE FOR DOUBTFUL
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
UNCOLLECTABLE ACCOUNT	21,000	CLOSING BALANCE	21,000
	21,000		21,000
Insurance Expense Accounts
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
CASH	500	CLOSING BALANCE	500
	500		500

RETAINED EARNINGS
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
CLOSING BALANCE	10,000	OPENING BALANCE	10,000
	10,000		10,000
RECEIVABLES
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
SERVICE REVENUE	350,000	CLOSING BALANCE	350,000
	350,000		350,000
UNCOLLECTABLE ACCOUNT
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
CLOSING BALANCE	21,000	ALLOWANCE FOR DOUBTFUL	21,000
	21,000		21,000
EQUIPMENT
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
CASH	8,860	DEPRECIATION	836
		CLOSING BALANCE	8,024
	8,860		8,860
DEPRECIATION
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
EQUIPMENT	836	CLOSING BALANCE	836
	836		836