Accounts Payable Accounts Receivable Accumulated Depreciation—Plant Assets Allow

ID: 2555082 • Letter: A

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Accounts Payable
Accounts Receivable
Accumulated Depreciation—Plant Assets
Allowance from Expropriation
Asset Retirement Obligation
Cash
Depreciation Expense
Dividends Payable
Due to Customer
Discount on Notes Payable
FICA Taxes Payable
Freight-In
FUTA Taxes Payable
Income Tax Expense
Income Tax Payable
Insurance Premium Payable
Interest Expense
Interest Payable
Inventory
Inventory of Premiums
Land Improvements
Lawsuit Liability
Lawsuit Loss
Litigation Expense or Loss
Litigation Liability
Loss from Expropriation
Loss on ARO Settlement
No Entry
Notes Payable
Oil Platform
Payroll Tax Expense
Plant Assets
Premium Expense
Premium Liability
Purchases
Purchase Discounts
Purchase Discounts Lost
Purchase Returns and Allowances
Retained Earnings
Salaries and Wages Expense
Salaries and Wages Payable
Sales Revenue
Sales Tax Payable
SUTA Taxes Payable
Trucks
Unearned Sales Revenue
Unearned Warranty Revenue
Union Dues Payable
Warranty Expense
Warranty Liability
Warranty Revenue
Withholding Taxes Payable

List of Accounts

Problem 13-1 Described below are certain transactions of Stellar Corporation. The company uses the periodic inventory system. 1 On February 2, the corporation purchased goods from Martin Company for $75,400 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. Theivoice was paid on February 26. 2. On April 1, the corporation bought a truck for $48,000 from General Motors Company, paying $5,000 in cash and signing a one-year, 12% note for the balance of the purchase price. 3. On May 1, the corporation borrowed $80,700 from Chicago National Bank by signing a $89,820 zero-interest-bearing note due one year from May 1 4. On August 1, the board of directors declared a $284,400 cash dividend that was payable on September 10 to stockholders of record on August 31. Make all the journal entries necessary to record the transactions above using appropriate dates. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

Date Account Titles and Explanation Debit Credit 02/02 PURCHASES ($75,400 X 98%) 73892 ACCOUNTS PAYABLE 73892 02/16 ACCOUNTS PAYABLE 73892 PURCHASE DISCOUNTS LOST 1508 CASH 75400 12/31 NO ADJUSTMENT NECESSARY 04/01 TRUCKS 48000 CASH 5000 NOTES PAYABLE 43000 12/31 INTEREST EXPENSE 4320 INTEREST PAYABLE 4320 [$48,000 PRINCIPAL X 12% INTEREST X 9/12 MONTHS = $4,320] 05/01 CASH 80700 DISCOUNT ON NOTES PAYABLE 9120 NOTES PAYABLE 89820 INTEREST EXPENSE 6080 DISCOUNT ON NOTES PAYABLE 6080 [$9,120 DISCOUNT X 8/12 MONTHS (STRAIGHT-LINE) = $6,080] 08/01 DIVIDEND 284400 DIVIDEND PAYABLE 284400 08/31 NO ADJUSTMENT NECESSARY 09/10 DIVIDEND PAYABLE 284400 CASH 284400

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Accounts Payable Accounts Receivable Accumulated Depreciation-Plant Assets Allow

Accounts Payable Accounts Receivable Cash (balance on September 1, 2014) Cash (b

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Accounts Payable Accounts Receivable Accumulated Depreciation—Plant Assets Allow

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