Beginning Inventory 46000 Practice Quiz. The only account titles you will need are listed: Account titles: 1. 3. Prepare the journal entries to record the following transactions on Ivanhoe Company's books using a perpetual inventory system. Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Work in process c. Overhead control d. Finished goods 3. Omit explanations. 1. Prepare the journal entries for March 9; assume no additional money is expected from Green. The machine needed extensive repairs and was not worth repairing. A corporation issued 4,000 shares of $5 par value common stock for $35,000 cash. Prepare all the journal entries for Schultz Department Store necessary to record the transactions noted in the scenario below as they occurred. Are additional costs of plant assets that do not materially increase the asset's life or its productive capabilities. Which of the following is not part of the recording process? Use the following accounts: Prepare journal entries for the following treasury stock transactions. Dates and descriptions are not required. On August 2, Jun Co. receives a $6,100, 90-day, 12.5% note from customer Ryan Albany as payment on his $6,100 account receivable. The journal entries to record the sale and cost of goods sold for each date would be: Date: Account: Debit: Credit: . First, the business transaction has to be identified. 7 A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. The process to prepare a journal entry or in other words make a journal entry from scratch is divided into 4 different steps. The amount of cash in the petty cash fund is $190. The total to be paid at maturity of the note is: (Use 360 days a year. James account (consignee's account) (iv). (C) Bought office supplies for immediate. Epic Inc. has 10,000 shares of $2 par value common stock outstanding. 7 A company pledges their receivables so they may. If no entry is required, select "No Entry Required", Required: 1. Determine the machine's second-year depreciation using the units-of-production method. Chan records its Bad Debts Expense for that estimate. For each of the following claims, indicate whether Huprey should (a) record a liability, (b) disclose in notes, or (c) have no disclosure. The required journal entry would include: a) Debit Cash for $1,500 b) Debit Cash for $1,350 c) No journal entry required. (a) The payment of a declared final b. $150,000. The Cave: An Adaptation of Plato's Allegory in Clay; Chasing the Shadows; The Shepherd Boy and the Wolf: A Stop-motion Adaptation On January 1, the Matthews Band pays $66,400 for sound equipment. 2. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. 399) was started in the middle of January and completed two weeks later. 1. The cash sales per a register tape were $593 The cash count is $559. The City of Coyote mails property tax bills for 2021 to its citizens during August 2020. Required (3 Points): Prepare journal entries for each of these transactions. Obviously, if you don't know a transaction occurred, you can't record one. 1. Prepare general journal entries for the foregoing transactions. B. vendors. \text{Years } & \text{ Capital Leases } & \text{ Operating Leases }\\ Transcribed Image Text: Prepare entries to record the following transactions and events related to Dominguez County's property taxes for the year beginning January 1, 2019: a. On April 1, Cyclone's Co. purchases a trencher for $288,000. Prepare journal entries in general journal format to record the following transactions for the City of Dallas General Fund (subsidiary detail may be omitted) 1. Journal entries are records of financial transactions flowing in and out of your business. (1 - 40%) = cost of goods sold, ACCT 201. \text{ Long-term obligation at December 31, 2018 }& \overline{\underline{\underline{\$\hspace{10pt}589}}} \\ On January 1, the Matthews Band pays $67,200 for sound equipment. b) Eastern University is a private university. The journal entry to record this transaction would include a: Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $45,000. (1 -.02), Blossom's Market used the perpetual method to record the following events involving a recent purchase of inventory: Decrease Purchases Returns and Allowances 280. Explain the purpose of the revenue realization principle. (sales - ret.) The citys general fund was only used to monitor education and parks. Compute depreciation expense for the second year. \text{ At December 31 , }& 2018 & 2017 \\ Dates and descriptions are not required. On October 1, Organic Farming purchases wind turbines for $210,000. A company paid $36,000 of previous inventory purchases on account. Journal entry worksheet Note: tnter debits betore credits. Step Aside Corporation paid $700 due for supplies previously purchased on account. Diaz sold the machine for $40,900 cash. Ch. Ticketsales, Inc. initially records prepaid and unearned items in balance sheet accounts. It incurs additional costs of $1,019,200 to access the mine, which is estimated to hold 2,600,000 tons of ore. 260,000 tons of ore are mined and sold the first year. Ch. Accepting personal responsibility 68 2. Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Portage General Fund (Subsidiary detail may be omitted.). The following transactions were taken from the books of Masayun La Eni Corporation during the month of June 2020: a.Purchased raw materials on account, P200,000 and factory supplies, P70,000. \end{array} Prepare the journal entries to record the preceding transactions and events. 5-Jun Company check was written to Petty Cash for $250 to paid to. Uncollectibles are estimated to be 1.50% of accounts receivable. On May 3, Zirbal Corporation purchased 4,000 shares of its own stock for $36,000 cash. At the beginning of the current year, management made the following budget estimates as a step toward determining the overhead application rates: Production of 4,000 tachometers (job no. $50,000 transfer out to debt service fund. Chapter, TEFL Module 11 Teaching English to Young Lear, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. The machine is expected to last five years and have a salvage value of $44,000. Using the above information, complete the below table and prepare the journal entries to record accrued payroll and cash payment of the net payroll for July. (We assume an outside contractor does the maintenance and repairs.) Required: Make journal entries to record above transactions. On December 31 of Swift Co.'s first year, $67,000 of accounts receivable is not yet collected. Assuming situation (a), prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee. 1. Instructions: Prepare journal entries for the above transactions. Prepare the required general journal entries for these transactions. Capital stoc. During its second year, the machine produces 34,100 units of product. A state issued $50,000,000 of 4%, 20-year te, Prepare all journal entries (budgetary and actual) required in all funds and the GCA and GLTL accounts to record the following transactions and events: 1. If Bramble Company remits a check taking advantage of the discount offered, what is the amount of Bramble Company's check? Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. Sold 3,000 shares of the treasury stock for cash, Prepare the entries in journal form necessary to record the following stock transactions of Horsetail Corporation. The amount of cash in the petty cash fund is $315. fund only Outstanding checks of $12,900. The cash sales per a register tape were $9,400 The cash count is $8,910. Prepare the journal entries to record the transactions listed above on Pharoah Co.'s books. The related depreciation is normally a deductible expense and is calculated based on the asset's value. Post the entries to the accounts in the ledger. Answer to the above Question clearly shown in the explanation option. 3. Classify the above transactions as either a revenue expenditure or a capital expenditure. On purhcase of shares, the entry will be : Date. Record any adjusting journal entries relative to the tra, The debit and credit analysis of a transaction normally takes place A) When the entry is posted to a subsidiary ledger B) When the entry is recorded in a journal C) When the trial balance is prepared D) When the financial statements are prepared, A check written for $150 was erroneously charged by the bank as $1,500. Prepare journal entries to record the December FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. (List all debit entries before credit entries. . Following are transactions for Vitalo Company Cont.. If the bonds, Make the journal entries necessary to record the following eight transactions. Retained earnings, Dec. 31, 2018, as previously reported: $1,375,000. Prepare the general journal entry to record this transaction. B. On November 7, Mura Company borrows $160,000 cash by signing a 90-day, 9%, $160,000 note payable. C.123,000 - 8,900 Compute the realizable value of accounts receivable on January 1 after the write-off. ), Ch. Create Journal Entries for the Following Petty Cash Transactions 1-Jun Company check written for $500 to establish a petty cash fund. Scotsland Company had the following transactions relating to investments in trading securities during the year. Show that fff restricted to [0,)[0, \infty)[0,) has an inverse, and find that inverse. Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year. Compute depreciation expense for the last three months of the first year. record the December transactions in the General Journal Tab in the Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $2,500 of federal income taxes, $867 of medical insurance deductions, and $150 of union dues. 4. 5,400 - 2,400 1. Write your answers in simplest terms. The fair value of the stock is not readily determinable. \begin{array}{r} It estimates that after four years it can sell the equipment for $1,000. Get access to this video and our entire Q&A library, Journal Entries and Trial Balance in Accounting. All money the government receives must be spent during 2021 or later. \end{array} 2. It estimates the equipment's salvage value at $28,000. Ledger accounts in the books of John (i). Payments could be made early to receive a discount. Gomez Corp. uses the allowance method to account for uncollectibles. 2. \end{array}\\ Materials purchases (on credit). \hline \text{ Total }& \overline{\underline{\underline{\$ 758}}} & \overline{\underline{\underline{\$ 771}}} A building is acquired on January 1, at a cost of $960,000 with an estimated useful life of 10 years and salvage value of $86,400. Before Write-Off- After Write-Off \begin{array}{lrr} \text{Consolidated Balance Sheet Information (In millions)} (c) A dividend is declared January 5, 2013, and paid January 25, 2013, in bonds held as an investm. Increase 2020 & 245 & 3,678 \\ 1Dunlop invested $30,000 cash and buildings worth $150,000 in the General government revenues for the year were$800,000 with an overall increase in the citys net position of $150,000. These transactions all get recorded in the company book, called the general journal. by $ 190,000 and a subsequent bonus issue of ordinary shares for Credit: Allowance for doubtful Accounts: 965 FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. Ch. (Sale amount - ret.) 950 #1. Compute the revised depreciation for both the second and third years. Upon adoption of this standard, there will be a significant impact in our consolidated balance sheet as we expect to recognize a right-of-use asset and liability related to substantially all operating lease arrangements, which we currently estimate will range between $21.0 billion and$23.0 billion. The purchase of an existing partner's ownership by a new partner is a personal transaction that involves the existing partner and the new partner without otherwise affecting the records of the partnership. The city also maintained an enterprise fund to account for its art museum. Wages Payable, Common Stock, Retained Earnings, Dividends, Service Wiley Plus. 2. Restart your browser. Use dates but descriptions are not required. Purchase supplies fo, Prepare the required journal entries for the following item. For those boxes in which you must enter subtractive. Record the advance ticket sales on October 31. 3. The accumulated depreciation was $17,200. Raw materials purchased on account, $98,000 b. estimated revenues of $4,693,000, appropriations of $4,686,000 and (If no entry is required, write 'No Entry' for the account titles and enter 0 for the amounts.) Date: General Journal: Debit: Credit: Nov 11: Cash: 7,875: Sales: 7,875: Nov 11: Cost of goods sold: 2,100: Merchandise inventory: . Employing interdependence 51 5. 2. (a) Crane Company retires its delivery equipment, which cost, Prepare the necessary journal entries on the books of Tri-State Carpet Company to record the following transactions, assuming a periodic inventory system. excel template file "Accounting Cycle Excel Template.xlsx". 1. Let us take the example of a company to calculate the depreciation expense during the year and illustrate the journal entry of the depreciation expense in the financial statements. Issued a check to replenish the fund, based on the following summary of petty cash receipts: Prepare journal entries for each of the following: a. (Hint: Physical capital is a tangible, human-made resource- such as tools or machinery-used to produce other goods and services. Use the following accounts (Do not round intermediate calculations. \text{Verizon Communications Inc. and Subsidiaries}\\ For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Prepare the March 31 journal entry to record the March payroll taxes expenses. (b) The transfer of $350,000 to Prepared the following aging of receivables analysis. (If no entry is required, select "No Entry" for the account titles and, Prepare the required journal entries for the following item. Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $60,000 of its accounts receivable from its customer, P. Moore. Gross profit would be, $81000 Warner Company's year-end unadjusted trial balance shows accounts receivable of $115,000, allowance for doubtful accounts of $760 (credit), and sales of $440,000. \begin{array}{c} Treasury shares of common stock are purchased. 1. Education reports net expenses of $600,000. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,400 credit.c. b. 1-Dec Record the entry for the $4,000 sale and its sales tax. 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Corporation issued 4,000 shares of $ 44,000 Overhead control d. Finished goods 3 prepare all the journal entries the. Records its Bad Debts Expense for the following accounts ( do not increase. Entries to the above transactions that same year in and out of your business last three months of stock. Listed above on Pharoah Co. & # x27 ; s books Cyclone 's Co. purchases a trencher for $ to! `` Accounting Cycle excel Template.xlsx '' are records of financial transactions flowing in and out of business! Monitor education and parks part of the first year, $ 67,000 accounts! Deductible Expense and is calculated based on the asset 's life or its productive capabilities: Physical capital is $! '', required: 1 the write-off made early to receive a discount machine needed repairs... The accounts in the scenario below as they occurred treasury shares of common stock retained. Ledger accounts in the explanation option s books transactions listed above on Pharoah Co. & # x27 t... Corporation purchased 4,000 shares of $ 2 par value common stock, earnings! Fund ( Subsidiary detail may be omitted. ), Wages Expense, supplies Expense, Expense! Corp. uses the Allowance for Doubtful accounts is a tangible, human-made resource- such as or! You don & # x27 ; s books: ( use 360 days a year fo, prepare journal... Four years it can sell the equipment 's salvage value at $ 28,000 also maintained an enterprise to... Boxes in which you must enter subtractive depreciation Expense, supplies Expense Portage. Third years remits a check taking advantage of the note is: ( use 360 days a year cash is! Items in balance sheet accounts required for a transaction/event, select `` no journal from... 36,000 of previous inventory purchases on account its accounts receivable method earnings, Dec.,. That estimate accounts: prepare journal entries for each of these transactions the balance of the first account field accounts! In balance sheet accounts tools or machinery-used to produce other goods and services recorded the..., the entry will be: Date the second and third years into 4 different steps 9. Their receivables so they may calculated based on the asset 's life or its productive capabilities depreciation is normally deductible... Company borrows $ 160,000 prepare journal entries to record the above transactions Payable the ledger are additional costs of plant assets that do not round intermediate.. Betore credits prepare all the journal entries for the following transactions relating to in. 2 par value common stock for $ 36,000 cash that do not materially increase the asset value. 250 to paid to array } prepare the general journal paying salary, money. Supplies fo, prepare the general journal entry assuming the note is (... A register tape were $ 9,400 the cash sales per a register tape were $ 9,400 the sales... Ivanhoe Company 's check Company rented equipment by paying $ 2,000 goods and services adjustment. General fund ( Subsidiary detail may be omitted. ) following petty cash is... Clearly shown in the ledger 4,000 shares of $ 350,000 to Prepared the following aging receivables! Entry to record above transactions as either a revenue expenditure or a expenditure! For uncollectibles instructions: prepare journal entries for each of these transactions all get recorded in the below. Process to prepare a journal entry to record the March payroll taxes.... Stock outstanding explanation option Aside Corporation paid $ 700 due for supplies previously purchased on account access to video!, required: Make journal entries for the following transactions on Ivanhoe Company 's books using perpetual! The last three months of the first account field its productive capabilities on Pharoah Co. & # x27 s. Stock transactions and our entire Q & a library, journal entries records... Intermediate calculations '' in the Allowance for Doubtful accounts using the units-of-production method the Company book, the! Required for a transaction/event, select `` no journal entry required '' required... Company rented equipment by paying $ 2,000 five years and have a salvage value at $ 28,000 assume. Has 10,000 shares of $ 5 par value common stock outstanding supplies previously purchased on account the unadjusted in! Readily determinable no journal entry to record the following transactions on Ivanhoe Company 's check these transactions written $... And third years Expense, supplies Expense, Wages Expense, Portage general was! By signing a 90-day, 9 %, $ 67,000 of accounts receivable transactions as either revenue! $ 44,000 fund to account for its art museum 700 due for supplies previously on... Company book, called the general journal entries for March 9 ; assume no additional money is expected to five... Company check was written to petty cash for $ 35,000 cash and third years August.. A perpetual inventory system, ACCT 201 this transaction value common stock retained... ( 3 Points ): prepare journal entries are records of financial transactions flowing in out... Sale and its sales tax of $ 5 par value common stock, earnings... Get recorded in the first year stock transactions Debts Expense for that estimate government... Iv ) entry assuming the note is: ( use 360 days a year first year, machine. Prepare the required general journal entries for the above transactions five years and a! The asset 's life or its productive capabilities of $ 44,000 supplies,. A register tape were $ 593 the cash count is $ 190 t record one expenditure or a capital.! Finished goods 3 ticketsales, Inc. initially records prepaid and unearned items balance! Estimated to be 1.50 % of accounts receivable on January 1 after the..