Attached is an Income statement for Fleming Company. Your office burned down. Yo

Question

Attached is an Income statement for Fleming Company. Your office burned down. You found the following date: Fleming Income Statement: Revenue $20,980 Rent Expense $2,400 Depreciation Expense $ 2,200 Supplies Expense $ 960 Office Expense $1,240 total $ 6,800 Net income $ 14,100 And the following Notes :The company paid $15,600 in cash dividends. Accounts receivables decreased by $ 1,480 during the course of the year. Accounts payable increased by $ 380 when they purchased supplies. Total cash increased from $ 460 to $ 3100 Prepare the journal entries that occurred during the year. use T account for each account.

Explanation / Answer

Calculation of increase in cash surplus during the year Cash receipts from customers $22,460.00 Cash payment to suppliers -$580.00 Cash payment for Rent and office exp. -$3,640.00 Dividend paid -$15,600.00 Increase in cash surplus $2,640.00 Journal entries Account Titles and Explanation Debit Credit Accounts Receivables $20,980.00 Sales Revenue $20,980.00 Cash $22,460.00 Accounts Receivables $22,460.00 Supplies Expense $960.00 Supplies   $960.00 Supplies $960.00 Accounts Payable $960.00 Accounts Payable $580.00 Cash $580.00 Rent Expense $2,400.00 Office Expense $1,240.00 Cash $3,640.00 Depreciation Expense $2,200.00 Accumulated Depreciation $2,200.00 Income Summary $6,800.00 Supplies Expense $960.00 Rent Expense $2,400.00 Office Expense $1,240.00 Depreciation Expense $2,200.00 Sales Revenue $20,980.00 Income Summary $20,980.00 Income Summary $14,180.00 Retained Earnings $14,180.00 Retained Earnings $15,600.00 Dividend Payable $15,600.00 Dividend Payable $15,600.00 Cash $15,600.00

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