1. Credit sales fo 1. Credit sales for the year amounted to $336,000. 2. The cos

Question

1. Credit sales fo 1. Credit sales for the year amounted to $336,000. 2. The cost of goods sold was $218,400. 3. Collected accounts receivable, $352,800 4. Purchased inventory on account, $235,200. 5. Issued 700 shares of common stock for $25 per share. 6. Wrote off $9,800 of uncollectible accounts using the nce for bad debts. 7. Declared and paid a cash dividend, $28,000 8. Sold marketable securities costing $36,400 for $43400 in cash. 9. Recorded insurance expense for the year, $16800. The premium for the policy was paid in June 2013. 10. Borrowed cash on a short-term bank loan, $14,000. 11. Repaid orincipal of $56000 200 on a and interest of $4 journal entry has been entered

Explanation / Answer

Journal Entries Sr No Account title Dr $ Cr $       1.00 Sales Revenue 336,000.00 Accounts Receivable          336,000.00       2.00 Cost Of Goods Sold          218,400.00 Finished Goods Inventory 218,400.00       3.00 Cash          352,800.00 Accounts Receivable 352,800.00       4.00 Inventory          235,200.00 Accounts Payable 235,200.00       5.00 Cash            17,500.00 Common Stock      17,500.00       6.00 Allowance for Bad Debts               9,800.00 Accounts Receivable        9,800.00       7.00 Reatined Earning              28,000.00 Dividend Payable      28,000.00 Dividend Payable            28,000.00 Cash      28,000.00       8.00 Cash            43,400.00 Investment in Marketable Security      36,400.00 Gain/(Loss) on sale of Trading Security        7,000.00       9.00 Insurance Expense              16,800.00 Prepaid Insurance      16,800.00    10.00 Cash            14,000.00 Bank Loan-Short term      14,000.00    11.00 Bank Loan -Long Term            56,000.00 Accrued Interest Payable               4,200.00 Cash      60,200.00

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