1. CREATE JOURNAL ENTRIES FOR THE APRIL 2016 TRANSACTIONS BELOW FOR SUNFLOWER DE
ID: 2544119 • Letter: 1
Question
1. CREATE JOURNAL ENTRIES FOR THE APRIL 2016 TRANSACTIONS BELOW FOR SUNFLOWER DESIGNS: On April 1st, a laptop was purchased on credit totaling $1,200. The estimated useful life of the laptop is five (5) years and is expected to have no salvage value. The invoice terms were 1/10, net 30 a. b. On April 1st, a liability insurance policy was purchased to cover Sunflower Design. The policy was for coverage through March 31st of next year. The cost of this policy was $2,500. The annual policy was paid on April 1st. On April 4th, $150 of office supplies was purchased on credit and used in the month of April The terms of the invoice were net 30 c. On April 9th, a customer paid the net balance due for an interior design layout. The invoice for these services was sent to the customer on March 18th. The total contract price was $11,250 d. e. On April 10th, a check was issued to pay for the laptop purchased on April 1st. On April 20th, Sunflower Designs received a refund of $30 from their office supply vendor for items that were returned on the April 4th purchase f. On April 24th, Sunflower Designs paid for the office supplies purchased on credit on April 4 g. th On April 24th, Sunflower Designs purchased $1,500 worth of inventory items for resale. These items were purchased on credit and the invoice term is net 30 h. On April 25th, Mary sold a side table from inventory for $350. The inventory cost for this item was $150. The customer paid cash for this purchase. i. On April 25th, $200 worth of inventory was returned to supplier because of defects. The inventory had been purchased on account in March. j. On April 28th, Sunflower Designs completed, delivered, and billed an interior design layout for $16,000 to a new customer. The terms of the invoice were 2/10, net 30. k. On April 29th, the customer delivered a check for one-half of the interior design invoice delivered the previous day. I. m. On April 315t, Sunflower Designs recorded the $1,500 in wages for a temporary employeeExplanation / Answer
1500
Date Journal Amt in $ 01-Apr Laptop A/c Dr 1200 To Sundry Creditors 1200 01-Apr Insurance A/C Dr 1875 Prepaid Insurance A/C Dr 625 To cash 2500 04-Apr Office Supplies A/c Dr 150 To Sundry Creditors 150 04-Apr Cash A/c Dr 11250 To Sundry Debtors 11250 10-Apr Sundry Creditors A/C Dr 1200 To Cash 1188 To Laptop 12 20-Apr Sundry Creditors Dr 30 To Office Supplies 30 24-Apr Sundry Creditors Dr 120 To Cash 120 25-Apr Cash A/C Dr 350 To Sales 350 25-Apr Sundry Creditors A/C Dr 200 To Purchase Return 200 28-Apr Debtors A/C Dr 16000 To Sales 16000 29-Apr Cash A/C Dr 8000 To Debtors 8000 31-04-2018 Wages A/C Dr 1500 To Wages Payable1500
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