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Equipment $160,000 Unearned Revenues $50,000 Inventory $ 95,000 Accounts Payable

ID: 2378046 • Letter: E

Question

Equipment

$160,000

Unearned Revenues

$50,000

Inventory

$ 95,000

Accounts Payable

$60,000

Accounts Receivable

$ 20,000

Accumulated Depreciation - Equipment

($30,000)

Building

$100,000

Accumulated Depreciation - Bldg

($50,000)

Cash

$ 150,000

Note Payable

$140,000

Supplies

$ 12,000

Capital Stock

$150,000

Prepaid Rent

$ 15,000

Retained Earnings, beg. bal.

$172,000

Land

$100,000

1.  Employee salaries in the amount of $55,000 were incurred for the year.  Of that amount, $50,000 had been paid in cash, the remainder was still owed to employees at the end of the year.  Record the journal entry necessary at December 31, 2005 to account for both the paid and unpaid portion of salaries.

2.        At the end of the year, $5,000 of the supplies remained on hand.  Record the adjustment necessary at December 31, 2005.

3.        The company paid $20,000 on their accounts payable during the year.  Record the entry.


HOW WOULD WE PUT NUMBERS 1, 2 AND 3 IN JOURNAL ENTRIES???  THANKS FOR THE HELP

Equipment

$160,000

Unearned Revenues

$50,000

Inventory

$ 95,000

Accounts Payable

$60,000

Accounts Receivable

$ 20,000

Accumulated Depreciation - Equipment

($30,000)

Building

$100,000

Accumulated Depreciation - Bldg

($50,000)

Cash

$ 150,000

Note Payable

$140,000

Supplies

$ 12,000

Capital Stock

$150,000

Prepaid Rent

$ 15,000

Retained Earnings, beg. bal.

$172,000

Land

$100,000

Explanation / Answer

1. Salaries & Wages Expense -Debit $55,000

Cash Credit 50,000

Salaries & Wages Payable Credit 5,000

Supplies expense Dr. 7000

supplies Cr. 7000

(Supplies Used=12000-5000=7000)


3. Accounts Payable Debit 20,000

Cash credit 20,000