HELP PLEASE WITH JOURNALS ENTRIES: Understanding of Chapter 7 is required prior
ID: 2446407 • Letter: H
Question
HELP PLEASE WITH JOURNALS ENTRIES:
Understanding of Chapter 7 is required prior to starting these transactions.
4/6/2015 Collected $137,000 from customers from sales made on account.
4/8/2015 A sale was made for $70,000 on account, and $34,000 worth of inventory was shipped out.
4/13/2015 Wrote off a receivable that amounted to $2,400 against the allowance.
4/29/2015 Paid $60,000 to vendors (who were getting very angry that Behrend Corp was taking so long to pay), plus $4,000 of utilities that had been accrued.
4/30/2015 The company paid $49,000 of operating expenses, including utilities, insurance and wages.
5/7/2015 Inventory was purchased for $87,000, on account.
5/11/2015 A sale was made for $93,000 on account, and $47,000 worth of inventory was shipped out.
5/12/2015 Collected $95,000 from customers from sales made on account.
5/20/2015 Inventory was purchased for $63,000, on account.
5/29/2015 $23,000 was paid for operating expenses, including utilities, insurance and wages.
6/3/2015 Paid $109,700 on accounts payable.
6/13/2015 A sale was made for $110,000 on account, and $56,000 worth of inventory was shipped out.
6/17/2015 $27,800 was paid for operating expenses including insurance and wages for June.
6/27/2015 Recorded the adjustment to recognize the use of the second quarter's rent, which was prepaid.
6/28/2015 Paid dividends to the common stockholders in the amount of $5,000.
Explanation / Answer
Journal Entry Date Particulars Dr Amount Cr Amount 4/6/2015 Cash a/c Dr. $137,000 To Accounts Receivables A/c $137,000 (Being the amt. recd from customers) 4/8/2015 Accounts Receivables A/c Dr. $70,000 Cost of Goods Sold A/c Dr. $34,000 To Sales A/c $70,000 To Inventory A/c $34,000 (Being the sale of inventory on credit) 4/13/2015 Provision for Bad Debts A/c Dr. $2,400 To Accounts Receivables $2,400 (Being the accounts receivables written off) 4/29/2015 Accounts Payables A/c Dr. $60,000 To Cash A/c $60,000 (Being the vendors has been paid) 4/29/2015 Utilities A/c Dr. $4,000 To O/s Utilities A/c $4,000 (Being the utilities accrued) 4/30/2015 Operating Expenses A/c Dr. $45,000 O/s Utilities A/c Dr. $4,000 To cash A/c $49,000 (Being the expenses paid) 5/7/2015 Inventory A/c Dr. $87,000 To Accounts Payable A/c $87,000 (Being the inventory purchased on credit) 5/11/2015 Accounts Receivables A/c Dr. $93,000 Cost of Goods Sold A/c Dr. $47,000 To Sales A/c $93,000 To Inventory A/c $47,000 (Being the sale of inventory on credit) 5/12/2015 Cash a/c Dr. $95,000 To Accounts Receivables A/c $95,000 (Being the amt. recd from customers) 5/20/2015 Inventory A/c Dr. $63,000 To Accounts Payable A/c $63,000 (Being the inventory purchased on credit) 5/29/2015 Operating Expenses A/c Dr. $23,000 To cash A/c $23,000 (Being the expenses paid) 6/3/2015 Accounts Payables A/c Dr. $109,700 To Cash A/c $109,700 (Being the vendors has been paid) 6/13/2015 Accounts Receivables A/c Dr. $110,000 Cost of Goods Sold A/c Dr. $56,000 To Sales A/c $110,000 To Inventory A/c $56,000 (Being the sale of inventory on credit) 6/17/2015 Operating Expenses A/c Dr. $27,800 To cash A/c $27,800 (Being the expenses paid) 6/27/2015 Rent A/c Dr. Detail of Amount to be recognized To Prepaid Rent A/c is not given in the question (Being the second qtr rent was recognized) 6/28/2015 Dividends A/c Dr. $5,000 To Cash A/c $5,000 (being the Dividends paid)
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