HELP PLEASE WITH JOURNALS ENTRIES QTR 4 Understanding of Chapter 11 is required
ID: 2446412 • Letter: H
Question
HELP PLEASE WITH JOURNALS ENTRIES
QTR 4 Understanding of Chapter 11 is required prior to starting these transactions.
46 10/1/2015 Inventory was purchased for $306,000, on account.
47 10/10/2015 A sale was made for $322,000 on account, and $177,100 worth of inventory was shipped out.
48 10/11/2015 There was a leak in the roof that caused damage to the building and had to be repaired. The repair did not extend the life of the roof.
None of the loss was covered by insurance, so $16,300 cash was paid for the roof repairs and the related damage to the interior walls.
49 10/18/2015 An invoice was received for $19,000 for utilities which will be paid in November.
50 10/29/2015 Collected $381,000 from customer accounts receivable.
51 10/30/2015 2,000 shares of common stock were repurchased back in to treasury for $13 per share.
52 11/15/2015 $36,000 was paid for operating expenses, including office supplies and October wages.
53 11/24/2015 Paid $290,000 on accounts payable.
54 11/26/2015 $46,000 was paid for insurance, utilities, November wages and repairs and maintenance.
55 11/28/2015 The note payable borrowed on 8/30 is repaid with interest.
56 12/2/2015 A sale was made for $118,000 cash, and $68,000 worth of inventory was shipped out.
57 12/3/2015 The allowance for doubtful accounts was adjusted to reflect 1/2% of credit sales made for the year. (Don't forget there was a cash sale in Q4)
58 12/29/2015 $18,000 was paid for wages and year-end bonuses.
59 12/30/2015 Depreciation expense is recorded on the building for the three months it was used. Remember we begin depreciation when we begin using the asset.
60 12/31/2015 Accrue another $47,000 utility bill.
61 12/31/2015 Shares of cumulative, 5% preferred stock were sold for $50,000. There were 1,000 shares sold, which had a par value of $30 each.
No dividends are associated with the current year, but dividend accumulation will begin in the upcoming year.
Explanation / Answer
Journal entries:
Date
Accounts / Explanations
Debit
Credit
10/1/2015
Inventory
$ 306,000
Accounts Payable
$ 306,000
(Being Inventory purchased for $306,000, on account)
10/10/2015
Accounts Receivables
$ 322,000
Sales
$ 322,000
(Being sale made for $322,000 on account)
Cost of Goods sold
$ 177,100
Inventory
$ 177,100
(Being $177,100 worth of inventory shipped out)
10/11/2015
Repair Expenses
$ 16,300
Cash
$ 16,300
(Being expense paid)
10/18/2015
Utility expenses
$ 19,000
Utility Payable
$ 19,000
(Being bill received for utilities)
10/29/2015
Cash
$ 381,000
Accounts Receivables
$ 381,000
(Being amount collected)
10/30/2015
Treasury Stock
$ 26,000
Cash
$ 26,000
(Being shares 2000 repurchased @ $13 per share)
11/15/2015
Operating Expenses
$ 36,000
Cash
$ 36,000
(Being expenses paid)
11/24/2015
Accounts Payable
$ 290,000
Cash
$ 290,000
(Being amount paid)
11/26/2015
Operating Expenses
$ 46,000
Cash
$ 46,000
(Being Expenses paid)
11/28/2015
Notes payable
Interest payable
Cash
(Being notes paid with interest)
(Note payable details needed for amounts)
12/2/2015
Cash
$ 118,000
Sales
$ 118,000
(Being sale made for cash )
Cost of Goods sold
$ 68,000
Inventory
$ 68,000
(Being inventory shipped out)
12/3/2015
Bad debts Expense (322000*0.5%)
$ 1,610
Allowances for doubtful accounts
$ 1,610
(Being allowances made for doubtful accounts)
12/29/2015
Wages Expenses
$ 18,000
Cash
$ 18,000
(Being expense paid)
12/30/2015
Depreciation Expense
Accumulated depreciation
Being depreciation recorded)
(Cost of the assets is needed for calculation of depreciation )
12/31/2015
Utility expenses
$ 47,000
Utility Payable
$ 47,000
(Being expense accrued)
12/31/2015
Cash
$ 50,000
Preference share Capital (1000 Shares * $30)
$ 30,000
Paid in capital In excess of Par - Preference Shares (50000-30000)
$ 20,000
(Being 1000 preference shares of $ 30 Par value issued for $50000)
Journal entries:
Date
Accounts / Explanations
Debit
Credit
10/1/2015
Inventory
$ 306,000
Accounts Payable
$ 306,000
(Being Inventory purchased for $306,000, on account)
10/10/2015
Accounts Receivables
$ 322,000
Sales
$ 322,000
(Being sale made for $322,000 on account)
Cost of Goods sold
$ 177,100
Inventory
$ 177,100
(Being $177,100 worth of inventory shipped out)
10/11/2015
Repair Expenses
$ 16,300
Cash
$ 16,300
(Being expense paid)
10/18/2015
Utility expenses
$ 19,000
Utility Payable
$ 19,000
(Being bill received for utilities)
10/29/2015
Cash
$ 381,000
Accounts Receivables
$ 381,000
(Being amount collected)
10/30/2015
Treasury Stock
$ 26,000
Cash
$ 26,000
(Being shares 2000 repurchased @ $13 per share)
11/15/2015
Operating Expenses
$ 36,000
Cash
$ 36,000
(Being expenses paid)
11/24/2015
Accounts Payable
$ 290,000
Cash
$ 290,000
(Being amount paid)
11/26/2015
Operating Expenses
$ 46,000
Cash
$ 46,000
(Being Expenses paid)
11/28/2015
Notes payable
Interest payable
Cash
(Being notes paid with interest)
(Note payable details needed for amounts)
12/2/2015
Cash
$ 118,000
Sales
$ 118,000
(Being sale made for cash )
Cost of Goods sold
$ 68,000
Inventory
$ 68,000
(Being inventory shipped out)
12/3/2015
Bad debts Expense (322000*0.5%)
$ 1,610
Allowances for doubtful accounts
$ 1,610
(Being allowances made for doubtful accounts)
12/29/2015
Wages Expenses
$ 18,000
Cash
$ 18,000
(Being expense paid)
12/30/2015
Depreciation Expense
Accumulated depreciation
Being depreciation recorded)
(Cost of the assets is needed for calculation of depreciation )
12/31/2015
Utility expenses
$ 47,000
Utility Payable
$ 47,000
(Being expense accrued)
12/31/2015
Cash
$ 50,000
Preference share Capital (1000 Shares * $30)
$ 30,000
Paid in capital In excess of Par - Preference Shares (50000-30000)
$ 20,000
(Being 1000 preference shares of $ 30 Par value issued for $50000)
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