Record journal entries for the summarized transactions for 2010 (e.g. items 1 -
ID: 2434806 • Letter: R
Question
Record journal entries for the summarized transactions for 2010 (e.g. items 1 - 10 below)Susie’s Catering Service, a corporation, began business on January 1, 2009. At the end of Year 1, December 31, 2009, the company’s post-closing trial balance appeared as follows:
a/c # Account name Balance 100 Cash 38,500 105 Accounts Receivable 4,000 110 Supplies 2,200 115 Prepaid Insurance 1,800 160 Equipment 15,000 165 A/D-Equipment (3,000) Total Assets 58,500 200 Accounts Payable 6,300 205 Notes Payable (short-term) 3,000 210 Wages Payable 1,200 215 Interest Payable 0 220 Income Taxes Payable 700 225 Advances from Customers 2,200 250 Notes Payable (long-term) 9,000 300 Contributed Capital 12,000 305 Retained Earnings 24,000 Total Liabilities & Owners' Equity 58,500 310 Dividends Declared 0 400 Service Revenue 0 505 Depreciation Expense 0 510 Wages Expense 0 515 Insurance Expense 0 520 Supplies Expense 0 600 Interest Expense 0 650 Income Tax Expense 0
A summary of transactions (1 – 10) which occurred during 2010 are as follows (to be entered into the “general journal” at December 30, 2010):
(1). Earned revenue of $125,000 of which $102,400 had been collected in cash with $22,600 still due from customers. This amount does not include the balance in the “Advances from Customers” account which will be considered in transaction <8.
(2). Purchased equipment for $2,400 cash.
(3). Issued 1,000 additional shares of stock and received $7,000 cash.
(4). Paid cash wages of $56,200, of which $1,200 was payment on the beginning of the year Wages Payable balance, with the remaining $55,000 paid for work performed during the current year.
(5). Purchased supplies costing $3,000 for future use during the year. $600 of these purchases remain unpaid for at the end of the year [i.e. $2,400 was paid in cash with $600 still open on account to vendors]
(6). Collected the entire Accounts Receivable balance that existed at the beginning of the year.
(7). Paid off all of the beginning Accounts Payable balance.
(8). Near the end of the year received a $1,650 deposit from a customer for services to be performed next year.
(9). Declared and paid a cash dividend of $9,500.
(10). Paid the “Income Taxes Payable” balance that existed at the beginning of the year.
Record journal entries for the summarized transactions for 2010 (e.g. items 1 - 10 below)
Susie’s Catering Service, a corporation, began business on January 1, 2009. At the end of Year 1, December 31, 2009, the company’s post-closing trial balance appeared as follows:
A summary of transactions (1 – 10) which occurred during 2010 are as follows (to be entered into the “general journal” at December 30, 2010):
(1). Earned revenue of $125,000 of which $102,400 had been collected in cash with $22,600 still due from customers. This amount does not include the balance in the “Advances from Customers” account which will be considered in transaction <8.
(2). Purchased equipment for $2,400 cash.
(3). Issued 1,000 additional shares of stock and received $7,000 cash.
(4). Paid cash wages of $56,200, of which $1,200 was payment on the beginning of the year Wages Payable balance, with the remaining $55,000 paid for work performed during the current year.
(5). Purchased supplies costing $3,000 for future use during the year. $600 of these purchases remain unpaid for at the end of the year [i.e. $2,400 was paid in cash with $600 still open on account to vendors]
(6). Collected the entire Accounts Receivable balance that existed at the beginning of the year.
(7). Paid off all of the beginning Accounts Payable balance.
(8). Near the end of the year received a $1,650 deposit from a customer for services to be performed next year.
(9). Declared and paid a cash dividend of $9,500.
(10). Paid the “Income Taxes Payable” balance that existed at the beginning of the year.
a/c # Account name Balance 100 Cash 38,500 105 Accounts Receivable 4,000 110 Supplies 2,200 115 Prepaid Insurance 1,800 160 Equipment 15,000 165 A/D-Equipment (3,000) Total Assets 58,500 200 Accounts Payable 6,300 205 Notes Payable (short-term) 3,000 210 Wages Payable 1,200 215 Interest Payable 0 220 Income Taxes Payable 700 225 Advances from Customers 2,200 250 Notes Payable (long-term) 9,000 300 Contributed Capital 12,000 305 Retained Earnings 24,000 Total Liabilities & Owners' Equity 58,500 310 Dividends Declared 0 400 Service Revenue 0 505 Depreciation Expense 0 510 Wages Expense 0 515 Insurance Expense 0 520 Supplies Expense 0 600 Interest Expense 0 650 Income Tax Expense 0
Explanation / Answer
(1). Earned revenue of $125,000 of which $102,400 had been collected in cash with $22,600 still due from customers. This amount does not include the balance in the “Advances from Customers” account which will be considered in transactionRelated Questions
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