record the journal entries Accounting 120 Extra Credits C. Prepare the closing e
ID: 2573617 • Letter: R
Question
record the journal entries
Accounting 120 Extra Credits C. Prepare the closing entry for Doz's Wholesale Shop (note you do not need to prepare the post closing trial balance) 1/1/16-Borrowed $50,000 from a local bank and signed a two-year note. The note had a 3% interest rate and all interest is due at the maturity date 1/1/16 - Purchased equipment for $8,000 by paying cash. In addition, spent another $2,000 cash having the equipment modified before use. The equipment has a residual value of $1,000 and was expected to last 4 years. Doz will use the straight-line method when depreciating this asset. 2/1/16 - Received payment from a customer for sales made last year in the amount of $1,500 2/1/16-Paid wages owed to employees for work done previously in the amount of $7,000 2/1/16 -Received and recorded a utility bil in the amount of $100. Payment will be made in March. 2/1/16-22 boxes of goods were purchased from Stone Company for $1,650 with the terms 4/10, n/30 2/5/16 -Returned two boxes of goods to the Smith Company. 2/10/16-Paid the balance due to the Smith Company 3/1/16 - Paid income taxes due from 2015. 3/5/16-paid the utility billfrom February 3/10/16-20 boxes of goods (originally purchased from Stone) were sold to lordan for $3,000 with the terms 2/10, n/30 3/12/16-Jordan returns five boxes of goods from 3/10/16 sale. 3/18/16-Jordan pays the remaining balance owed. 4/1/16-A customer balance of $500 from a prior year was determined to be uncollectible and was written off 6/30/16 -Payroll was run and paid out. Gross wages were $7,250, FICA withheld was $550, Federal Tax Withheld was $1,200 and there was no state tax. Unemployment taxes are estimated to be $175. 7/1/16-A note was received fromn Grant in exchange for a loan of $20,000 with a 4% interest rate, all interest and principal are due 6/30/17 7/15/16-Issued 1,000 shares of $1 par common stock for $3 per share.Explanation / Answer
Date Account Title and Explanation Debit Credit 1/1/2016 Cash $50,000 3% NotePayable $50,000 (To record amount borrowed) 1/1/2016 Equipment $10,000 Cash $10,000 (To record purchase of equipment) 2/1/2016 Cash $1,500 Accounts Receivable $1,500 (To record cash received) 2/1/2016 Wages Payable $7,000 Cash $7,000 (To record payment of wages) 2/1/2016 Utility Expense $100 Utility Expense Payable $100 (To record utility bill) 2/1/2016 Inventory $1,650 Accounts Payable $1,650 (To record inventory purchased) 2/5/2016 Accounts Payable $150 Inventory $150 (To record pucrhase return) 2/10/2016 Accounts Payable $1,500 Cash $1,440 Inventory $60 (To record payment) 3/5/2016 Utility Expense Payable $100 Cash $100 (To record the payment made) 3/10/2016 Accounts Payable $3,000 Sales Revenue $3,000 (To record sales) 3/10/2016 Cost of Goods Sold $1,440 Inventory $1,440 (To record COGS) 3/12/2016 Sales Return $750 Accounts Payable $750 (To record sales return) 3/12/2016 Inventory $360 Cost of Goods Sold $360 (To record sales return) 3/18/2016 Cash $2,205 Sale Discounts $45 Accounts Receivable $2,250 (To record payment received) 4/1/2016 Bad Debt Expense $500 Accounts Receivable $500 (To record bad debt) 6/30/2016 Wages Expense $7,425 FICA Payable $550 Federal Tax Payable $1,200 Unemployment taxes Payable $175 Cash $5,500 (To record wages expense paid) 7/1/2016 4% Note Receivable $20,000 Loan $20,000 (To record the note receivable) 7/15/2016 Cash $3,000 Common Stock $1,000 Additional Paid in Capital $2,000 (To record common stock issued) 8/15/2016 Cash $300 Bad Debt Expense $300 (To record recovery of bad debt) 9/20/2016 Accounts Receivable $25,000 Sales Revenue $25,000 (To record sales) 9/20/2016 Cost of Goods Sold $12,500 Inventory $12,500 (To record COGS) 10/15/2016 Cash $16,000 Accounts Receivable $16,000 (To record cash received) 11/1/2016 Prepaid Insurance $1,800 Cash $1,800 (To record insurance done) 12/15/2016 Cash $1,000 Unearned Sales Revenue $1,000 (To record advance received) 12/31/2016 Bad Debt Expense $1,250 Allowance for Doubtful Debt $1,250 (To record bad debt expense) 12/31/2016 Accrued Interest $400 Interest Income $400 (To record interest income) *$20,000 x 4% x (6/12) 12/31/2016 Interest Expense $1,500 Outstanding Interest Payable $1,500 (To record interest expense) *$50000 x 3% 12/31/2016 Dividends $250 Cash $250 (To record dividend paid) 12/31/2016 Depreciation Expense $2,250 Accumulated Depreciation - Equipment $2,250 (To record depreciation on equipment) 12/31/2016 Insurance Expense $300 Prepaid Insurance $300 (To record the insurance expense)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.