Provide the appropriate general journal entry for each accounting event. Note: S

Question

Provide the appropriate general journal entry for each accounting event. Note: Some of the below are just events, not accounting events

f these is an Inventoriable Items versus Non-Inventoriable Items Expenditure, Expense & Loss s a merchandising vending machine supply frm You hawe trucks suppied with candy bars, ehips, soda, beer and cigarette type businesses, schools, gevemment offices etc products to stock vending machines at various other Required: 1. Provide the approprate gereral journal antry for each Accounting event in the space pravided on tha back of this sheet. Note: Some of the below are just events, nat Accourting eyenta a Order $12,000 of sgaretes on.account tiom a suppler in Sparta IL, taims Foe Spata L. The order ships lhe same day the order rs placad ard wil arrre in one week How are the cigarettes to be dassified on the date of the order? b. The freight cost for the above transaction wss $200, and will be rcladed on the imoice you receive for shipping at a later date. How is the freight cost dassifed? c. You receive the Westar electric bill n the mal for $485, due in 2 wecks. How is the bili to be classified? u+. in d. The cigarettes in event a. arrive. A worker urloads the truck and placss the oigareltes /t in stock. Classify the impact of the dgarettes artival (cigarettes; not the worker)? e. Given the worker in event d. above is paid $40 cash to unlaad the truck, elasity the worker's pay f. Classify the recording of $800 of depreciation on the delivery van. g. Order $11,000 of Snickers candy bars on account from Mars Inc. of Topeka KS Terms are n/10 FOB Manhattan, KS. The bars will arrive in 2 weeks. Classity the impact of this event on the date of the order h. The Snickers in event g. above arrive and are put in stock. Classfy tha impact of the amrval of the candy bars i. Mads a sale to K-State by stocking one of their vending machines (K-Stare owns the machine) with 1 case of Snickers, 1 case of chips, 2 cases of beer and 1 case of cigarettes. Biled K-State $280. The cost of the items sold amount to $170 Classify the impact cf this sales event. Hint This wi2 require two journal entries A forkift runs over a case of Snickers bars costing 540. Classity the impact of this event k. Pay the carette suppliers invoice from event aabove Classfy the mast af this event L Classify the impact of paying the Westar electric bill

Explanation / Answer

Particulars

Debit

Credit

a

Accounts receivables

12,000.00

         Unearned revenue

12,000.00

(to record the sale of cigarettes)

Explanation: the cigarettes are in transit, so the revenue of $12000 cannot be included in sale since as per the Accounting Standard, till the time, the risk and the ownership of the goods are not transferred on to the buyer, the sale cannot be recorded. Hence, @12000 would be recorded as being receivable from customer and would form part of an unearned revenue.

Particulars

Debit

Credit

b

Carriage outwards expense

      200.00

           Unearned revenue

      200.00

(to record the carriage outwards expense)

Explanation: This expense forms the part of the above delivery being made by the company, so, again this would form part of the carriage outwards expense since this expense is associated with the sale that is made by the company. So, since the transportation cost is the expense for the company, it would be debited and since the revenue (because it forms the part of the above bill) has not been earned, it would be included as an unearned liability.

Particulars

Debit

Credit

c

The bill would be classified as a utility bill since the same is being used to produce goods in the company.

Utility expense

      485.00

           Accounts payable

      485.00

(to record the utility bill payable)

Explanation: The impact of such delivery would be that the worker would count the number of cigarettes or its boxes and then would report the same to the warehouse manager who would record the number of the cigarettes received and the cost per cigarette and then would add these numbers to the stock register. Once, this is done, the cigarettes would form a part of the inventory and hence, would be available for sale

Particulars

Debit

Credit

a

Accounts receivables

12,000.00

         Unearned revenue

12,000.00

(to record the sale of cigarettes)

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