Tiger Company completed the following transactions. The annual accounting period
ID: 2429646 • Letter: T
Question
Tiger Company completed the following transactions. The annual accounting period ends December 31.
Purchased merchandise on account at a cost of $40,000. (Assume a perpetual inventory system.)
Rented out a small office in a building owned by Tiger Company and collected eight months’ rent in advance amounting to $11,200. (Use an account called Unearned Rent Revenue.)
Determined wages of $28,000 were earned but not yet paid on December 31 (Ignore payroll taxes).
journal entry list:
1. Purchased merchandise on account at a cost of $40,000. (Assume a perpetual inventory system.) Record the transaction.
2. Paid for the January 3 purchase. Record the transaction.
3. Received $96,000 from Atlantic Bank after signing a 12-month,5 percent promissory note. Record the transaction.
4. Purchased merchandise on account at a cost of 11,200. Record the transaction.
5. Paid for the June 13 purchase. Record the transaction.
6. Rented out a small office in a building owned by Tiger Company and collected eight months’ rent in advance amounting to $11,200. (Use an account called Unearned Rent Revenue.) Record the transaction.
Tiger Company completed the following transactions. The annual accounting period ends December 31.
Required 1. Prepare journal entries for each of the transactions through August 1. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4. 6 Purchased merchandise on account at a cost of $40,000. (Assume a perpetual inventory system.) Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 03 Record entry Clear entry View general journalExplanation / Answer
Answer
Date
Dr. $
Cr. $
3-Jan
Inventory
40,000
Accounts Payable
40,000
27-Jan
Accounts Payable
40,000
Cash
40,000
1-Apr
Cash
96,000
5% Notes Payable
96,000
13-Jun
Inventory
11,200
Accounts Payable
11,200
25-Jul
Accounts Payable
11,200
Cash
11,200
1-Aug
Cash
11,200
Unearned Rent revenue
11,200
2.
31-Dec
Wages Expense
28,000
Wages Payable
28,000
31-Dec
Interest Expense ($96000 * 5% * 9/12 Months)
3,600
Interest Payable
3,600
31-Dec
Unearned Rent revenue (28000 * 5/12 Months)
17,500
Rent Revenue
17,500
3.
Balance Sheet
Short Term Liabilities
Notes Payable
96,000
Unearned Rent Revenue
4200
Wages Payable
28000
Interest Payable
3600
Total
131,800
Date
Dr. $
Cr. $
3-Jan
Inventory
40,000
Accounts Payable
40,000
27-Jan
Accounts Payable
40,000
Cash
40,000
1-Apr
Cash
96,000
5% Notes Payable
96,000
13-Jun
Inventory
11,200
Accounts Payable
11,200
25-Jul
Accounts Payable
11,200
Cash
11,200
1-Aug
Cash
11,200
Unearned Rent revenue
11,200
2.
31-Dec
Wages Expense
28,000
Wages Payable
28,000
31-Dec
Interest Expense ($96000 * 5% * 9/12 Months)
3,600
Interest Payable
3,600
31-Dec
Unearned Rent revenue (28000 * 5/12 Months)
17,500
Rent Revenue
17,500
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