value 3.00 points Tiger Company completed the following transactions. The annual

Question

value 3.00 points Tiger Company completed the following transactions. The annual accounting period ends December 31 Jan 3 Purchased merchandise on account at a cost of $25,000. (Assume a perpetual inventory Jan. 27 Paid for the January 3 purchase Apr 1 Received $81,000 from Afantic Bank after signing a 12-month, 60 percent promissory note. system) June 13 Purchased merchandise on account at a cost of $8,200 July 25 Paid for the June 13 purchase. Aug 1 Rented out a small office in a building owned by Tiger Company and collected eight months Dec. 31 Determined wages of $13,000 were earned but not yet paid on December 31 (Ignore payroll rent in advance amounting to $8,200. (Use an account called Unearned Rent Revenue.) taxes) Dec. 31 Adjusted the accounts at year-end, relating to interest Dec. 31 Adjusted the accounts at year-end, relating to rent Required: 1. Prepare journal entries for each of the transactions through August 1. (If no entry is required for a transactionlevent, select No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Purchased merchandise on account at a cost of $25,000. (Assume a perpetual inventory system.) Record the transaction. Note: Enter debits before credits Date General Journal Debit Credit Jan 03 Record entry Clear entry View general journal

Explanation / Answer

Journal Entries for transaction Debit Credit 3-Jan Inventory 25000 Account Payable 25000 27-Jan Account Payable 25000 Cash 25000 1-Apr Cash 81000 Note Payable 81000 13-Jun Inventory 8200 Account Payable 8200 25-Jul Account Payable 8200 Cash 8200 1-Aug Cash 8200 Unearned rent revenue 8200 Adjusting entries 31-Dec Wages expenses 13000 Wage Payable 13000 31-Dec Interest expense 3645 Interest Payable 3645 31-Dec Unearned rent revenue 5125 Rent Revenue 5125 (8200/8*5) Balance Sheet Partial At December 31 Liabilities Interest Payable 3645 Unearned rent revenue 3075 Note Payable 81000 Wage Payable 13000 Total 100720

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.