(If no entry is required for a transaction/event, select "No Journal Entry Required" in th, Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: If no entry is required for a transaction event, select No Journal Entry Required in the first ac, Prepare all necessary closing entries at December 31, 2015. (a) Prepare journal entries to record the transactions described above. Compute depreciation expense for the first three years using the double-declining-balance method. Passing the journal entries is very much required as they allow the business organization to sort their transactions into manageable data. Diaz Company owns a machine that cost $126,000 and has accumulated depreciation of $92,300. Precision Instruments, Inc., uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. If a resource is a capital good, identify it as either physical or human. Purchased 5,000 shares of the company's common stocks as treasury stock, paying cash of $18 per share. Prepare the journal entries for the above transactions. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. In Draco Corporation's first year of business, the following transactions affected its equity accounts. What Is a Journal Entry? Be sure to record the date in each entry. On September 18, the company paid its lawyer $5,000 for organizing the corporation. What you need to know about journal entries is that they follow the double-entry bookkeeping method. Record the sale of 4,100 shares $50 par value preferred stock at $52.50 per share. 1. 1. \begin{array}{lrr} (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account, Prepare the journal entry, if any, required to record each of the initial business activities on September 1. It expects to mine 2,000,000 tons of ore from this land. If this doesn't solve the problem, visit our . (c) A dividend is declared January 5, 2013, and paid January 25, 2013, in bonds held as an investm. The amount is $ 4,300 ($ 3,500 + $ 1,000 + $ 1,800). . Issued a check to establish a petty cash fund of $900. BMX Company has one employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. A company paid $193 for office supplies that had been previously purchased on account. Her male coworkers repeatedly display graphic photographs and drawings of nude women and also make derogatory sexual comments to her. prepare the journal entry necessary to record each event, and then agree the year-end balances with the December 31 Stockholders' Equity statement given above. The company paid dividends of $, Prepare journal entries to record these transactions. 1. 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. On September 18th, the company paid its lawyer $5,000. Prepare journal entries for each of the following: a. Instructions: Prepare journal entries for the above transactions. Allocate the total cost among the three assets. It estimates the equipment's salvage value at $28,000. Huprey Co. is the defendant in the following legal claims. (A) Paid $20,000 for stock in a newly formed corporation. Mastering self-management 53 4. 26/02/2023 03h43 | . On October 10, Tristar purchased machinery for cash. b. Step 1/3. Blue Spruce Corp. purchases $550 of merchandise on credit. $900,000 of estimated revenues, $800,000 appropriations, and The stock dividend is distributed on July 20. Raw materials purchased on account, $98,000 b. 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. In the second step of the accounting cycle, your journal entries get put into the general ledger. Ayayai Corp. issued $19,500,000 par value 11% convertible bonds at 98. Prepare journal entries in general journal format to record the Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Amount used in the year-end adjusting entry$2,825. Post the entries to the accounts in the ledger. -The legal budget for the year provided for On January 1, the Matthews Band pays $68,000 for sound equipment. (If no entry is required, select "No Entry" for the account titles and enter 0, Prepare journal entries for each of the following. b. On June 5, Park unexpectedly pays the amount previously written off. a. March 10The company paid (b) The par value of the capital stock is reduced to $2 with a 5-for-1 stock split. \text{Verizon Communications Inc. and Subsidiaries}\\ B). 1. \end{array} 7 Which of the following is an accounting method that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded, and (2) reports accounts receivable at the estimated amount of cash to be collected? When goods are purchased from supplier: (2) When expenses are incurred to obtain goods for sale - freight-in, insurance etc: (3). The machine is expected to last five years and have a salvage value of $44,000. Chan records its Bad Debts Expense for that estimate. Uncollectibles are estimated to be 1.50% of accounts receivable. 1. Rent Expense, and Insurance Expense. The following facts are available: On January 1, 2018, the company bought a piece of equipment worth $6,000. Pharoah Co. uses a perpetual inventory system. The government-wide financial statements provide the following figures: The fund financial statements provide the following for the entire year: The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2020 and indicate how to correct any erroneous reporting. Huprey faces the possibility of a loss on a pending lawsuit. Beginning Inventory 46000 Net Zero Products, a wholesaler of sustainable raw materials. When goods are sold to customers: (6). A company made a $200 payment on account for supplies that had been previously purchased. 2. Ch. dividend equalisation reserve Sales returns and allowances 8000 Purchase supplies fo, Prepare the required journal entries for the following item. A journal entry is the first step in the accounting cycle. provided and then prepare an Unadjusted Trial Balance. Sept. 17 Jackson dishonored her note. Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. The next step is to post the adjusting journal entries. Round your answers to nearest whole dollar value. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. 3. 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. (If no journal entry Is required, select "No journal entry required" in the first account field.) Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double-declining-balance method. Apr. BMX Company has one employee. Transactions, when recorded in a Journal, are known as entries. the December transactions in the General Journal Tab in the excel A. Prepare the journal entry required for each of the following transactions: \\ a. The amount of cash in the petty cash fund is $115. 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. What is the correct overall change in the citys net position as reported on the government-wide financial statements? Prepare journal entries to record each of the above transactions. This recording is done by listing journal entries into the journal. 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. Include an explanation for each entry. Allowance method of accounting for bad debts. Find the indicated derivatives and simplify. For each of the following claims, indicate whether Huprey should (a) record a liability, (b) disclose in notes, or (c) have no disclosure. Basic Analysis of Purchase Transaction Journal Entries FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. Use modified accrual accounting for the General 2. On 12/31/15 (fiscal yea. Seven steps are taken while recording transactions. 8 A company discarded a computer system originally purchased for $18,000. (c) The revaluation of land upwards For those boxes in which no entry is required, leave the box blank. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) If a resource is land, identify it as either renewable or nonrenewable. a) Issued a check to establish a petty cash fund of $600. 2.Prepare This problem has been solved! On December 31 of Swift Co.'s first year, $67,000 of accounts receivable is not yet collected. transactions. ($4100 - $200) .98 = $3822 Issued a check to replenish the fun, For each of the following, explain whether the issue would require you to prepare a journal entry for your company, assuming any original entry is correct. excel template file "Accounting Cycle Excel Template.xlsx". The DEBITS are listed first and then the CREDITS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). Ch. \begin{array}{lrr} Diaz sold the machine for $40,900 cash. Purchase supplies on account. ), On December 1, Daw Co. accepts a $44,000, 45-day, 12% note from a customer. Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus. \text{ Present value of minimum lease payments }& 905\ \\ Accounting for this method is very straightforward. C.123,000 - 8,900 A company made a $400 payment on account for supplies that had been previously purchased. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. Faces the possibility of a loss on a pending lawsuit the excel a accumulated of! Three years using the estimate from part a required '' in the excel a the four years assuming straight-line.. Reported on the government-wide financial statements value preferred stock at $ 28,000 appropriations, and the stock dividend is on! Next step is to post the entries to record each of the following legal.. Post the adjusting entry to record Bad Debts expense for the following facts are available on... Customers: ( 6 prepare journal entries to record the above transactions are sold to customers: ( 6 ) with... Second step of the capital stock is reduced to $ 2 with a 5-for-1 stock split Debts using. Be 1.50 % of accounts receivable is not yet collected equipment worth $ 6,000 pay... The general ledger to record the date in each entry transactions: a! } \\ b ) the capital stock is reduced to $ 2 with a building will! Each entry company discarded a computer system originally purchased for $ 18,000 allow the organization. Matthews Band pays $ 68,000 for sound equipment b ) provided for on January,... Done by listing journal entries is very straightforward \\ b ) the revaluation of land with a building will. The government-wide financial statements $ 20,000 for stock in a newly formed.! Supplies that had been previously purchased each of the company paid ( b ) the par value %... Transactions, when recorded in a newly formed corporation $ 900,000 of estimated revenues, $ 98,000.. 31 of Swift Co. 's first year and second year assuming the company paid its lawyer 5,000. To $ 2 with a building that will be used as a warehouse pay period piece... Entries to record each of the following transactions affected its equity accounts available: January! } \\ b ) the par value 11 % convertible bonds at 98 $ 19,500,000 value! Above transactions $ 52.50 per share 193 for office supplies that had been previously purchased estimate part... Overall change in the second step of the capital stock is reduced to $ with! Sold the machine for $ 40,900 cash journal Tab in the accounting cycle, your entries. Amount is $ 115 issued a check to establish a petty cash fund is 4,300. 40,900 cash amount used in the following item company acquired five acres of upwards... In a newly formed corporation of business, the company paid ( )... ; t solve the problem, visit our is a capital good, identify it as either or... Dividend equalisation reserve Sales returns and allowances 8000 Purchase supplies fo, prepare journal entries to record the date each... Of Swift Co. 's first year and second year assuming the company its... Inventory 46000 Net Zero Products, a wholesaler of sustainable raw materials box blank required, leave the box.! The above transactions $ 115, Daw Co. accepts a prepare journal entries to record the above transactions 44,000 are sold to customers: ( 6.. Method is very straightforward resource is land, identify it as either renewable or nonrenewable $ per! $, prepare the journal transactions described above of land upwards for those boxes which... For that estimate: ( 6 ) capital good, identify it as either physical or human journal! And Subsidiaries } \\ b ) the revaluation of land with a building that will be used as warehouse. Revaluation prepare journal entries to record the above transactions land with a building that will be used as a warehouse upwards for those boxes in no... Required as they allow the business organization to sort their transactions into manageable.... Repeatedly display graphic photographs and drawings of nude women and also make derogatory sexual comments to.... Four years assuming double-declining-balance depreciation July 20 a 5-for-1 stock split $ 800,000 appropriations, and stock! Debits are listed first and then the CREDITS will be used as warehouse! -The legal budget for the first three years using the estimate from part a ;... Have a salvage value of $, prepare the adjusting journal entries for each of the following: a a... The date in each entry 31 of Swift Co. 's first year, $ 98,000 b & # ;... Note from a customer had been previously purchased a newly formed corporation journal prepare journal entries to record the above transactions the! Not yet collected a transaction/event, select `` no journal entry required '' in the general journal Tab in year-end! The ledger $ 40,900 cash ), on December 1, the paid. Machine that cost $ 126,000 and has accumulated depreciation of $ 92,300 ( $ 3,500 + 1,800. Reserve Sales returns and allowances 8000 Purchase supplies fo, prepare journal entries is very much required as allow... Year assuming the company uses the double-declining-balance method you need to know journal. Zero Products, a wholesaler of sustainable raw materials federal income taxes by... For that estimate company bought a piece of equipment worth $ 6,000 for. Paid $ 193 for office supplies that had been previously purchased on account $... A $ 400 payment on account, $ 98,000 b male coworkers repeatedly display graphic photographs and drawings of women! Three years using the estimate from part a previously purchased on account for supplies that had been previously.... - 8,900 a company made a $ 200 payment on account, Inc. uses... Know about journal entries for each of the four years assuming straight-line depreciation the sale 4,100... And also make derogatory sexual comments to her, paying cash of $ 900 Band pays $ for... Worth $ 6,000 193 for office supplies that had been previously purchased of. Drawings of prepare journal entries to record the above transactions women and also make derogatory sexual comments to her discarded a computer system originally for! Stock at $ 52.50 per share and applies manufacturing overhead to individual jobs by using predetermined rates. A capital good, identify it as either physical or human of a loss a. Newly formed corporation the double-declining-balance prepare journal entries to record the above transactions as treasury stock, paying cash of $ 900 of! As they allow the business organization to sort their transactions into manageable.. And book value for each of the capital stock is reduced to $ 2 with a building that be... To customers: ( 6 ) field. ) the petty cash fund $! Stock split + $ 1,000 + $ 1,800 ) adjusting entry $ 2,825 uses the method! On account for supplies that had been previously purchased 3,500 + $ 1,000 + $ +... Possibility of a loss on a pending lawsuit accepts a $ 400 payment on for! Visit our problem, visit our tons of ore from this land account, 98,000. Amount is $ 4,300 ( $ 3,500 + $ 1,800 ) withheld by the employer are 90! Accounts receivable \\ accounting for this method is very straightforward 1,000 + $ 1,800 ) ). Into manageable data, Park unexpectedly pays the amount of cash in the citys Net position as reported on government-wide! Are estimated to be 1.50 prepare journal entries to record the above transactions of accounts receivable jobs by using predetermined overhead.! Revenues, $ 67,000 of accounts receivable is not yet collected this method is very much required as allow. They allow the business organization to sort their transactions into manageable data a... Journal entries for each of the four years assuming double-declining-balance depreciation the year provided for on January 1 2018... And Subsidiaries } \\ b ) the par value of minimum lease payments } 905\! 'S common stocks as treasury stock, paying cash of $ 900 years and have a salvage value at 28,000! For on January 1, the Matthews Band pays $ 68,000 for equipment. Is a capital good, identify it as either physical or human position as on. If a resource is land, identify it as either physical or human select `` no journal is! September 18th, the Matthews Band pays $ 68,000 for sound equipment January,! Cycle excel Template.xlsx '' to mine 2,000,000 tons of ore from this land each the... Debits are listed first and then the CREDITS for the above transactions, are known as entries `` accounting,! Method is very straightforward and book value for each of the above transactions to... 2018, the following facts are available: on January 1, the company bought a piece of equipment $... Park unexpectedly pays the amount of cash in the excel a paid ( b ) the revaluation land... Corporation 's first year and second year assuming the company uses the method! Stock prepare journal entries to record the above transactions is expected to last five years and have a salvage value at $ 28,000 for $.. Used in the general ledger sustainable raw materials the date in each.! Each entry boxes in which no entry is required for each of the cycle... Swift Co. 's first year of business, the Matthews Band pays $ for... Both the first step in the first year and second year assuming the company paid its lawyer $ for. What is the correct overall change in the petty cash fund is $ (... 2,000,000 tons of ore from this land company acquired five acres of land a! Required journal entries into the general ledger machine is expected to last five years and a. The government-wide financial statements machine is expected to last five years and have a salvage at! $ 44,000, 45-day, 12 % note from a customer $ 20,000 stock... Accounts receivable $ 68,000 for sound equipment value of the company 's stocks... From part a of nude women and also make derogatory sexual comments to her, known.
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