Prepare a journal entries to record the above transactions. Ticketsales, Inc., receives $7,160,000 cash in advance ticket sales for a four-date tour of Bon Jovi. 2. Sept. 17 Jackson dishonored her note. Beginning Inventory 46000 Journal entries in the books of John 2. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) revenues of $3,774,000, appropriations of $3,695,000 and estimated The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. The village commissioners adopted the followinf budgets: Estimated revenues: Property taxes 1850000. To raise property tax revenues of $940,000, the County sends bills to property owners totaling $950,000. provided and then prepare an Unadjusted Trial Balance. Precision Instruments, Inc., uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. 12.4 Prepare Journal Entries to Record Short-Term Notes Payable Highlights If you have ever taken out a payday loan, you may have experienced a situation where your living expenses temporarily exceeded your assets. \text{Verizon Communications Inc. and Subsidiaries}\\ It estimates that after four years it can sell the equipment for $1,000. It paid $4,000 down and signed a 10%% note with both principal and interest due in one year. estimated other financing uses of $225,000. The supplier agreed to accept 200 shares of the company's no par common stock in exchange for the equipment. Direct materials used In producti, 1. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double-declining-balance method. Actual machine-hours in Department A were 17,000, and actual direct labor hours in Department B were 26,000 during the year. transactions in General Fund general ledger accounts for fiscal Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. \hspace{35pt}\text{(dollars in millions)} \hspace{30pt}\\ b. Explain the purpose of the revenue realization principle. This recording is done by listing journal entries into the journal. Sold calculators costing $550 for $720 to Fryer Book Store, terms n/30. Step 1: Prepare journal entries to record Capital stock was issued for USD 200,000 cash. A company paid $70,000 for merchandise that had previously been purchased on account. Use the Prepare journal entries for each transaction above. And, we will record withdrawals by debiting the withdrawal . \text{Consolidated Balance Sheet Information (In millions)} Cycle Excel Template.xlsx". Select whether stockholders' equity would increase (I), decrease (D), or have no effect (NE) as a result of each separate transaction listed below. (If no entry is required for a, 1. The depletion expense per ton of ore is: Ch. Sylvestor Systems borrows $187,000 cash on May 15 by signing a 90-day, 6%, $187,000 note. Prepare the March 31 journal entry to record the March payroll taxes expenses. Accounts Payable, Wages Payable, Common Stock, Retained Earnings, & 2. Required: Prepare journal entries to record the above transactions assuming: a) Eastern University is a public university. On April 1, Cyclone's Co. purchases a trencher for $288,000. 1. One to record the sale to the customer and one to record the usage of inventory as a cost of goods sold. The cash sales per a register tape were $593 The cash count is $559. 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. Robin Harrington established Time Definite Delivery, on Jan, Prepare the journal entries to record the following transactions on Sheridan Company's books using a perpetual Inventory system. Daley Company prepared the following aging of receivables analysis at December 31. 1. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. Compute depreciation expense at December 31 for the first and second year assuming the company uses the straight-line method. \text{ At December 31 , }& 2018 & 2017 \\ supplies. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. b. Ch. Purchase supplies on account. Prepare the adjusting entry to record bad debts expense using the estimate from part a. ), On December 1, Daw Co. accepts a $44,000, 45-day, 12% note from a customer. Cash dividends are paid to shareholders. $63,300-$63,300. 1. ordinary share dividend of $50,000 A. Dr. Cr. These transactions represent all treasury stock transactions entered into by the comp, Prepare the journal entry required for each of the following transactions: \\ a. Restart your browser. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. NewTech purchases computer equipment for $264,000 to use in operating activities for the next four years. (subsidiary detail may be omitted) 4. b. Explain the purpose of the matching principle. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. Financial information is presented below: Using our vehicle example above, you must identify what transaction took place. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,400 debit. When goods are sold to customers: (6). Prepare journal entries to For the following transactions, prepare journal entries needed to adjust the company's books: a. As a result of these events, the company's inventory, increased by $80366 \begin{array}{lrr} Consider a research question you are interested in learning more On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Repair Parts Inventory. What The general fund reports a$30,000 increase in its fund balance. -Property taxes were levied in the amount of $400,000. Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. Assume that 6,630 units were produced duri, Prepare general journal entries to record the transactions below for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Comm, Record transactions and adjustments: Use the horizontal model, or write the journal entry for each of the following transactions and adjustments that occurred during the first year of operations at Me. On January 1, the Matthews Band pays $68,000 for sound equipment. 26/02/2023 03h43 | . Prepare journal entries in general journal format to record the Which of the following is not part of the recording process? A state issued $50,000,000 of 4%, 20-year te, Prepare entries to record the following transactions: (a) A $5,000 cash investment made by the owner of a business. Expenditures making a plant asset more efficient or productive. Materials b. Prepare journal entries to record each of the following transactions for Sanchez Company. (If no entry is required, select "No entry" for the, Prepare summary journal entries to record the following transactions and events for a company in its first month of operations: a. Cycle Excel Template.xlsx". \hline Remember, you do not change your journal entries for posting if you debit in an entry you debit when you post. Dates and descriptions are not required. 1. There has been phenomenal growth in the transportation sector of the economy since 2006. \text{ Capital leases }& \$1,756 & \$1,463 \\ (Do not round intermediate calculations. Click the card to flip Definition 1 / 28 Dr Inventory $28,600 Cr Accounts payable (AP) $28,600 Dr Inventory $580 Cr Cash $580 Dr Equipment $32,000 Cr AP $32,000 Dr AP $3,500 Cr MI $3,500 Dr AP $25100 other financing uses of $35,000. (1) Raw mat, For each of the unrelated transactions described below, present the entries required to record each transaction. Diaz leases (does not own) its store and has 8 years remaining on the lease. ), Following are transactions for Vitalo Company. 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. The amount of cash in the petty cash fund is $190. (e) A $1, Prepare journal entries for each of the following transactions: 1. $6 cash per share., Prepare the journal entry to record Jevonte Company's . Also make an adjusting entry required on June 30 on the basis of above information. On purhcase of shares, the entry will be : Date. The budget prepared for the fiscal year included total a. 3. Prepare all the journal entries for Schultz Department Store necessary to record the transactions noted in the scenario below as they occurred. A. -The legal budget for the year provided for Prepare journal entries to record above transactions and adjustments for 2017. The required journal entry would include: a) Debit Cash for $1,500 b) Debit Cash for $1,350 c) No journal entry required. Be sure to indicate in which fund the entry should be made. For deferrals, be sure to include the original journal entry as well as the adjusting journal entry. Bought office supplies for immediate consumption for $200 cash. For each of the events, prepare journal entries if a transaction of the business exists, checking that debits equal credits. Post the entries to the general ledger T accounts for Work in Process and Finished Goods, and compute the ending balances in these accounts. It is reasonably possible that Huprey could be required to pay damages. During the first year, the band performs 45 concerts. 2011: Jan. 2 Purchased 30,000 shares of Bushtex Co. common stock for $204,000 cash plus a broker's fee of $3,480 cash. Accumulated Depreciation = (Average Cost - Residual Value) / Useful Life. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 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. On March 9, it receives a $1,200 payment from Green.1. \begin{array}{c} What was the correct change during 2020? If the company's gross profit rate is 35%, Riverbed's will report monthly net sales revenue and cost of goods sold of, $209700 and $136305 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. (dollarsinmillions)Years20192020202120222023ThereafterTotalminimumrentalcommitmentsLessinterestandexecutorycostsPresentvalueofminimumleasepaymentsLesscurrentinstallmentsLong-termobligationatDecember31,2018CapitalLeases$34324514810052115$1,003$(98)905(316)$589OperatingLeases$4,0433,6783,2722,8712,52210,207$26,593. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. in dividends last year. Returns that month totaled $5300. Prepare Journal Entries to record each of the following transactions for Echo Systems. Using the periodic system, the cost of goods purchased is, $696820 \hline C.123,000 - 8,900 The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $420,000; Office salaries, $84,000; Federal income taxes withheld, $126,000; State income taxes withheld, $28,000; Social security taxes withheld, $31,248; Medicare taxes withheld, $7,308; Medical insurance premiums, $10,000; Life insurance premiums, $7,000; Union dues deducted, $4,000; and Salaries subject to unemployment taxes, $56,000. 7 Failure by a promissory notes' maker to pay the amount due at maturity is known as: Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). Required: Sold goods for $100,000 cash. fund only Ch. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. New shares of common stock are issued for cash. Dextra Computing sells merchandise for $4,000 cash on September 30 (cost of merchandise is $2,400). b. 1b. Accounts payable would now have a credit balance of $1,000 ($1,500 initial credit in transaction #5 less $500 debit in the above transaction).. Transaction #12: On December 25, the owner withdrew cash due to an emergency need. (If no journal entry Is required, select "No journal entry required" in the first account field.) 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. 2. $3,822 The bank increased the company's checking account by USD 30,000 after manageme. 2. BMX Company has one employee. 1-Dec Determine the machine's second-year depreciation and year end book value under the straight-line method. Disclose in Notes Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, \end{array}\\ Returned $4,000 of da, For each of the unrelated transactions described below, present the entries required to record each transaction. Prepare Chan's journal entries for the transactions. Explanation In addition, a receivable and an unavailable revenue for$180,000 are recognized. \text{ Total assets }& \$248,829 & \$257,143 \\ Prepare journal entries to record the transactions and events for both March and April. It is the book in which transactions are recorded for the first time. (If no entry is required, select "No Entry" for the account titles and e, For each of the transactions, prepare journal entries. B. The band estimates it will use this equipment for four years and perform 200 concerts. A journal entry shows all the effects of a business transaction as expressed in debit (s) and credit (s) and may include an explanation of the transaction. BMX Company has one employee. Notice how each transaction has 2 entries. Here are the steps to making an accounting journal entry. \begin{array}{lrr} 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. (A) Paid $20,000 for stock in a newly formed corporation. 30 Received a telephone bill for $100, which will be paid in two weeks. Cash was received for services performed for customers, USD 1,200. b. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. For a compound transaction, if an amount box does not require an entry, leave it blank: Issued a check to establish a petty cash fund of $800. (If no entry is required for a transaction/event, write "No Journal Entry Required.") Uncollectibles are estimated to be 1.50% of accounts receivable. Ch. (1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. (c) A dividend is declared January 5, 2013, and paid January 25, 2013, in bonds held as an investm. Prepare the journal entries for March 9; assume no additional money is expected from Green. Net Zero Products, a wholesaler of sustainable raw materials. Prepare the December 31 year-end adjusting entry for uncollectibles. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. Prepare the general journal entry to record this transaction. Record transactions for the purchase of inventory and payment on account assuming the company uses a perpetual inventory system. A. 2. \begin{array}{r} [($83400 - $1700) 0.98] + $300 = $80366 When goods are returned by customers: (7). Chan records its Bad Debts Expense for that estimate. 4. -Ownership rights cannot be easily transferred. Use the following accounts: Prepare journal entries for the following treasury stock transactions. Classify the above transactions as either a revenue expenditure or a capital expenditure. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $1,100? On January 15, the end of the first pay period of the year, North Company's employees earned $32,000 of sales salaries. Credit: Allowance for doubtful Accounts: 965 Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. No Disclosure. If no entry is required, write "no entry". What amount is received as payment in full on May 4? + fr. A company paid $500 cash toward the amount owed for cleaning supplies that had previously been purchased on account. ), Required: Analyze each account and recreate the journal entries that were made. Prepare the general journal entries required in the General Fund of Lincoln County for each of the following transactions. Capital stoc. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. The salvage value of the land is expected to be $250,000. Also, use transaction analysis to show any effects on the GCA-GLTL accounts. Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples. According to appraisals, the land had a fair value of $100,000 and the building had a fair value of $60,000. Tristar paid $140,000 in cash for the property. To make a journal entry, you enter details of a transaction into your company's books. Accounting for this method is very straightforward. A properly documented journal entry consists of the correct date, amounts to be debited and credited, description of the transaction and a unique reference number. How should each situation be handled? Prepare the general journal entry to record this transaction. The bank recorded your depos, Prepare the necessary entries from 1/1/14-2/1/16 for the following events using the fair value method. Prepare the journal entries to record the preceding transactions and events. Prepare the journal entries to record the transactions listed above on Pharoah Co.'s books. Goods sent on consignment account (iii). Returned $1700 of the shipment for credit. The financial statements are prepared on June 30. Warranty expense is estimated at 7% of sales. If no entry is required, select "No Entry Required", Required: 1. (b) $1,700 in revenue earned on the account. Steps to Prepare a Journal Entry Journalizing is the process of recording a business transaction in the accounting records (Journal Book). Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,400 credit.c. The total assessment is $300,000, and the city collects 40 percent of that amount in 2020 less a 10 percent discount. & \hspace{80pt}2018 & 2017 \\ Purchased $20,000 of equipment on account. 30 White honored her note when presented for payment. March 5The company purchased Record the sale of 4,100 shares $50 par value preferred stock at $52.50 per share. Prepare the journal entries to record transactions a and d. A. Sold calculators costing $510 for $750 to Heasley Card Shop, terms n/30. #1. A number of transactions that occurred in September are listed below. Pharoah Co. uses a perpetual inventory system. Ch. However, it cannot estimate amounts owed. (Enter all amounts positive values.). Ch. Operating expenses $ 25000 Prepare the general journal entry to record this transaction. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $2,700 credit. When goods are returned to supplier: (4). Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Amount used in the year-end adjusting entry$2,825. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. Paid freight of $60 on calculators purchased from Dragoo Co. To answer each transaction, you must analyze what should be debited and credited; you also must be familiar with the particulars and/or accounts for each transactions to make a journal entry. (b) a $430 debit balance before the adjustment. 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. Preferred stock$10 par value: $10,000; 1,000*10. 8 A company purchased a tract of land for its natural resources at a cost of $1,500,000. In the general information, an overall increase of$30,000 is reported in the fund balance for the general fund. Compute the first-year depreciation using the units-of-production method. 1. Seven steps are taken while recording transactions. On September 1, Home Store sells a mower (that costs $250) for $550 cash with a one-year warranty that covers parts. Journal entries are records of financial transactions flowing in and out of your business. On December 2, Tristar acquired various items of office equipment. 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. Diaz sold the machine for $33,700 cash. 5,400 - 2,400 transactions in the General Journal Tab in the excel template file (List all debit entries before credit entries. 8 Which of the following would be classified as a natural resource? 1. $705020 - $11800 - $13500 + $17100 = $696820 On January 1, the Matthews Band pays $67,200 for sound equipment. If peptidases digest proteins into amino acids, why dont they Explanations are not necessary. company March 2The company rented equipment by paying $2,000 cash (If no entry is required, select "No Entry" for the account titles and enter 0, Prepare journal entries for each of the following. The company also discloses the following in the summary of significant accounting policies: In February 2016, the FASB issued this standard update to increase transparency and improve comparability by requiring entities to recognize assets and liabilities on the balance sheet for all leases, with certain exceptions. \text{Notes to the Financial Statements}\\ In Department A\mathrm{A}A, overhead is applied on the basis of machine-hours, and in Department B, on the basis of direct labor hours. (sales rev - sales discounts - returns) - (cost of goods sold), Concord Corporation's accounting records show the following for the year ending on December 31, 2017. Officials also want to know the effect of each error. Journal entries for inventory transactions July 17, 2022 There are a number of inventory journal entries that can be used to document inventory transactions. Apr. Find the indicated derivatives and simplify. Our experts can answer your tough homework and study questions. Similar trucks were selling for $2,900. Ch. Rodriguez Company pays $331,695 for real estate with land, land improvements, and a building. Write your answers in simplest terms. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. $2,400 of office supplies for cash. Swift estimates that $3,700 of its accounts receivable is uncollectible and records the year-end adjusting entry. On November 4, Zirbal reissued 850 shares of this treasury stock for $8,500. Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Prepare the journal entries to record the sale of merchandise. Prepare the journal entries to record each of the above transactions. Use the following accounts as 7 A company pledges their receivables so they may. (a) Prepare journal entries to record the transactions described above. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15. $7,200 cash for the premium on a 12-month insurance policy.