Facts: During January and February 2015, Stackhouse, Connelly, and Teagarden Ent
ID: 2555272 • Letter: F
Question
Facts: During January and February 2015, Stackhouse, Connelly, and Teagarden Enterprises (SCT Enterprises) participated in the following transactions: Inventory on hand includes 500 widgets at a cost of $10 each (no journal entry is necessary, but you should make a note that these are the items that comprise the beginning inventory balance). Jan 1 Purchased two new delivery trucks for $75,000 by signing a five-year note payable. The note carries a 5% interest rate and is due in equal monthly installments of principal and interest Payments are due on the 2nd of each month. Note: you need to determine the amount of each monthly payment. 2 3 7 11 13 14 19 20 26 1 2 8 11 14 Paid employees $15,000 for wages earned in December. Purchased 11,000 widgets at a cost of $11 each on account. Paid various utility bills of $1,800 for the month of January. Sold 3,000 widgets on account for $60,000. Paid employees $15,000 wages for the first half of the month. Paid $75,000 to suppliers for previous inventory purchases. Delivered 300 widgets to the customer who prepaid in December. Collected $90,000 on account from customers. Paid employees $15,000 for wages due from lanuany. Made required payment on truck notes. Purchased 20,000 widgets at a cost of $9 each on account. Paid various utility bills of $2,100 for the month of February. Sold 5,000 widgets to a customer for cash of $100,000. FebExplanation / Answer
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SCT ENTERPRISES General Journal for the month of January and February 2015 Date Account Title Debit Credit Jan.2 Delivery Trucks 75000 Note Payable 75000 (Purchase of 2 trucks) Jan.3 Wages Payable 15000 Cash 15000 (December wages paid) Jan.7 Inventory 121000 Accounts Payable 121000 (Purchase of 11,000 widgets on account) Jan.11 Utility Expense 1800 Cash 1800 (Payment of utility bills) Jan.13 Accounts Receivable 60000 Sales 60000 (Sales of 3,000 widgets ) Cost of goods sold 33000 Inventory 33000 (Cost of 3,000 widgets) Jan.15 Wages Expense 15000 Cash 15000 (Payment of wages for first half of January) Jan.19 Accounts Payable 75000 Cash 75000 (Payment to suppliers on acount) Jan.20 Unearned Revenue 5000 Sales 5000 (Delivery of 300 widgets against advance) Cost of goods sold 3300 Inventory 3300 (Cost of 300 widgets delivered) Jan.29 Cash 90000 Accounts Receivable 90000 (Collected from customers) Feb.1 Wages Expense 15000 Cash 15000 (Wages paid for secodnhalf of January) Feb.2 Note Payable 1100 Interest Expense 315 Cash 1415 (Instalment on note payable) Feb.8 Inventory 180000 Accounts Payable 180000 (Purchase of 20,000 widgets @$9) Feb.11 Utility Expense 2100 Cash 2100 (Payment of utility bills) Feb.15 Wages Expense 15000 Cash 15000 (Wages paid for first half of February) Feb.21 Allowance for doubtful accounts 1000 Accounts Receivable 1000 (Write off of amount due from a customer) Feb.23 Inventory 80000 Accounts Payable 80000 (Purchase of 10,000 widgets @$8) Feb.24 Accounts Receivable 325000 Sales 325000 (Sale of 13,000 widgets ) Cost of goods sold 107000 Inventory 107000 (Cost of 13,000 widgets sold) Feb.28 Cash 20000 Accounts Receivable 20000 (Collection from customers)Related Questions
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