HELP PLEASE WITH JOURNALS ENTRIES QTR 3 Understanding of Chapter 10 is required
ID: 2446411 • Letter: H
Question
HELP PLEASE WITH JOURNALS ENTRIES
QTR 3 Understanding of Chapter 10 is required prior to starting these transactions.
31 7/6/2015 Collected $180,000 from customers from sales made on account.
32 7/12/2015 Inventory was purchased for $158,000 on account.
33 7/21/2015 A sale was made for $131,000 on account, and $64,500 worth of inventory was shipped out.
34 7/26/2015 Paid $126,000 for inventory purchased previously.
35 7/31/2015 $14,000 was paid for wages for July.
36 8/2/2015 Paid $2,000 rent for the August and September, and recorded all of it into the prepaid rent account.
37 8/9/2015 Collected $129,000 from customers from sales made on account.
38 8/12/2015 The company established a $300,000 line of credit with a bank. Funds could be borrowed or repaid at any amount at month end.
Interest would be paid at month end, at a rate of 1% per month. No funds were drawn at this time.
39 8/29/2015 Paid $57,000 for operating expenses, including supplies, August wages, insurance and office equipment rental.
40 8/30/2015 $50,000 was borrowed from a bank, at an interest rate of 12%. This is a 3-month note and interest and principal will be paid at maturity.
41 9/1/2015 A sale was made for $228,000 on account, and $125,400 worth of inventory was shipped out.
42 9/2/2015 Land and building is purchased for $100,000. The appraised values were $40,000 for the land and $120,000 for the building.
The building has an expected useful life of 25 years, and has no salvage value. $40,000 is paid in cash now as a deposit, and the balance
must be paid within 36 months. A no-interest note is signed for this amount. Management expects to be in the new facility and fully operating by October 1.
43 9/28/2015 Interest was accrued for September on the two notes payable (from transaction #40 and #42).
44 9/29/2015 Recorded the adjustment to recognize the use of the third quarter's rent, which was prepaid.
45 9/30/2015 Wages of $14,000 were paid for September.
Explanation / Answer
Answer:
Journal Entries Date Accounts Debit $ Credit $ 06-07-15 Cash 180,000.00 Accounts Receivable 180,000.00 12-07-15 Purchase 158,000.00 Accounts Payable 158,000.00 21-07-15 Accounts Receivable 131,000.00 Revenue 131,000.00 (No entries is required for shipped out) (Only physical count of inventory needs to be reduced) 26-07-15 Accounts Payable 126,000.00 Cash 126,000.00 31-07-15 Wages- Expenses 14,000.00 Cash 14,000.00 02-08-15 Prepaid Rent 2,000.00 Cash 2,000.00 09-08-15 Cash 129,000.00 Accounts Receivable 129,000.00 29-08-15 Operation Expenses 57,000.00 Cash 57,000.00 30-08-15 Cash 50,000.00 Bank Note Payable 50,000.00 01-09-15 Accounts Receivable 228,000.00 Revenue 228,000.00 (No entries is required for shipped out) (Only physical count of inventory needs to be reduced) 02-09-15 Land 40,000.00 Building 120,000.00 Note Payable 60,000.00 Cash 40,000.00 Revaluation Reserve 20,000.00 (Depreciation needs to be charged from 1st Oct) 28-09-15 Interest Expense 500.00 Interest Expense Payable 500.00 (No interest is required for transaction# 42) 29-09-15 Rent Expense 2,000.00 Prepaid Rent 2,000.00 30-09-15 Wages- Expenses 14,000.00 Cash 14,000.00Related Questions
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