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ez https://www.mo Exam 2 supplemental assignment Assignments: ACTG 2010 WSU Spr.

ID: 2554763 • Letter: E

Question


ez https://www.mo Exam 2 supplemental assignment Assignments: ACTG 2010 WSU Spr... Prepare all January journal entries and adjusting entries for items 1-19. Review the ' Balance' Tabs to see the effect of the transactions on the account balances. If no ent transaction/event, select "No journal entry required" in the first account field View transaction list -| 1 Included in OTP's January 1 Accounts Receivable balance24 is a $1,500 balance due from Jeff Letrotski. Jeff is having cash flow problems and cannot pay the $1,500 balance at this time. On 01/01, OTP arranges with Jeff to convert the $1,500 balance to a 6-month note, at 12% annual interest. Jeff signs the promissory note, which indicates the principal and all interest will be due and payable to OTP on July 1 of this year. Record the transaction balance pay the ert the the Credit OTP paid a $500 insurance premium on 01/02, covering the month of January; the payment is recorded directly as an expense. Record the transaction. 2 OTP purchased an additional 150 units of inventory from a supplier on account on 01/05 at a total cost of $9,000, with terms 2/15, n/30. Record the transaction. 3 Note : journal entry has been entered Record entry Clear entry View general journa Requirement General Ledger

Explanation / Answer

journal entries

date

explanation

debit

credit

1-

1-Jan

notes receivables

1500

accounts receivables

1500

2-

2-Jan

insurance expense

500

cash

500

3-

5-Jan

purchase

9000

accounts payable

9000

4-

5-Jan

freight in expense

500

cash

500

5-

6-Jan

unearned revenue

amount is not specified

sales revenue

6-

6-Jan

cost of goods sold

amount is not specified

inventory

7-

7-Jan

accounts payable

9000

discount

180

cash

8820

8 & 9

10-Jan

accounts receivables

amount is not specified

sales revenue

8 & 9

10-Jan

cost of goods sold

amount is not specified

inventory

10-

14-Jan

cash

5684

discount

116

accounts receivables

5800

11-

16-Jan

wage expense

2200

cash

2200

12-

18-Jan

allowance for doubtful debts

1000

accounts receivables

1000

13-

19-Jan

rent expense

amount is not specified

rent payable

amount is not specified

cash

2600

14- 15

26-Jan

accounts receivables

1000

allowance for doubtful debts

1000

14- 15

26-Jan

cash

1000

accounts receivables

1000

16-

27-Jan

utility expense

400

utility bill payable

400

17 & 18

28-Jan

accounts receivables

amount is not specified

sales revenue

17 & 18

28-Jan

cost of goods sold

amount is not specified

inventory

19 & 20

30-Jan

sales return

amount is not specified

accounts receivables

19 & 20

30-Jan

inventory

amount is not specified

cost of goods sold

21-

31-Jan

salary expense

2200

salary payable

2200

22-

31-Jan

bad debts

amount is not specified

allowance for doubtful debts

23-

31-Jan

interest expense

amount is not specified

interest payable

24-

31-Jan

interest receivable

15

interest revenue

15

journal entries

date

explanation

debit

credit

1-

1-Jan

notes receivables

1500

accounts receivables

1500

2-

2-Jan

insurance expense

500

cash

500

3-

5-Jan

purchase

9000

accounts payable

9000

4-

5-Jan

freight in expense

500

cash

500

5-

6-Jan

unearned revenue

amount is not specified

sales revenue

6-

6-Jan

cost of goods sold

amount is not specified

inventory

7-

7-Jan

accounts payable

9000

discount

180

cash

8820

8 & 9

10-Jan

accounts receivables

amount is not specified

sales revenue

8 & 9

10-Jan

cost of goods sold

amount is not specified

inventory

10-

14-Jan

cash

5684

discount

116

accounts receivables

5800

11-

16-Jan

wage expense

2200

cash

2200

12-

18-Jan

allowance for doubtful debts

1000

accounts receivables

1000

13-

19-Jan

rent expense

amount is not specified

rent payable

amount is not specified

cash

2600

14- 15

26-Jan

accounts receivables

1000

allowance for doubtful debts

1000

14- 15

26-Jan

cash

1000

accounts receivables

1000

16-

27-Jan

utility expense

400

utility bill payable

400

17 & 18

28-Jan

accounts receivables

amount is not specified

sales revenue

17 & 18

28-Jan

cost of goods sold

amount is not specified

inventory

19 & 20

30-Jan

sales return

amount is not specified

accounts receivables

19 & 20

30-Jan

inventory

amount is not specified

cost of goods sold

21-

31-Jan

salary expense

2200

salary payable

2200

22-

31-Jan

bad debts

amount is not specified

allowance for doubtful debts

23-

31-Jan

interest expense

amount is not specified

interest payable

24-

31-Jan

interest receivable

15

interest revenue

15