Question
CAN SOMEONE HELP ME WITH THE MISSING NUMBERS PLEASE
I need journal entries to the ledger accounts
LAND,BUILDINGS,ACCOUNTS PAYABLE, RETaINED EARNINGS, SERVICE REVENUE
During the first quarter of 2017, the following transactions occurred:
Bank reconciliation data and adjustment data:
1. On February 1, Bramble collected fees of $16,800 in advance. The company will perform $1,400 of services each month from February 1, 2017, to January 31, 2018. 2. On February 1, Bramble purchased computer equipment for $11,250 plus sales taxes of $750. $3,750 cash was paid with the rest on account. Check #455 was used. 3. On March 1, Bramble acquired a patent with a 10-year life for $12,000 cash. Check #456 was used. 4. On March 28, Bramble recorded the quarter’s sales in a single entry. During this period, Bramble had total sales of $180,000 (not including the sales referred to in item 1 above). All of the sales were on account. 5. On March 29, Bramble collected $173,000 from customers on account. 6. On March 29, Bramble paid $16,010 on accounts payable. Check #457 was used. 7. On March 29, Bramble paid other operating expenses of $97,000. Check #458 was used. 8. On March 31, Bramble wrote off a receivable of $200 for a customer who declared bankruptcy. 9. On March 31, Bramble sold for $1,450 equipment that originally cost $10,000. It had an estimated life of 5 years and salvage of $1,000. Accumulated depreciation as of December 31, 2016, was $7,200 using the straight line method. (
Hint: Record depreciation on the equipment sold, then record the sale.) Your answer is correct. Record journal entries for transactions 1-9. (Credit account titles are automatically indented when amount is entered. Do select "No Entry" for the account titles and enter 0 for the amounts.) Date No. Account Titles and Explanation Debit Credit February 1 1, Cash 16800 Unearned Service Revenue 16800 February 1 | 2.TEquipment 12000 Cash 3750 Accounts Payable 8250 March 1 3. Patents 12000 Cash 12000 March 28 4, Accounts Receivable 180000 Service Revenue 180000
Explanation / Answer
FOR LAND & BUILDING ALSO RETAINED EARNINGS THERE ARE NO ENTRIES AS NO TRANSACTIONS
SO YOU CAN'T ENTER AMOUNTS, PUT ZERO
1
CASH
16800
UNEARNED REV
16800
4
ACC REC
180000
SERVICE REVENUE
180000
5
CASH
173000
ACC REC
173000
6
ACC PAY
16010
CASH
16010
*
Bad Debts
2256
Provision for Bad debts
2256
ACC REC
BAL C/D
22600
CASH
173000
REVENUE
180000
BAD DEBTS
200
BAL C/D
29400
202600
202600
The balance of $29400, has $24000 “not past due” so $24000 x 4% = $960
The balance of 29400 less 24000 = 5400 is “past due” so x 24% = $1296
Total $960 + $1296= $2256
Better to write a T a/c
ACC PAY
CASH
16010
BAL C/D
12010
BAL C/D
4250
EQUIPMENT
8250
1
CASH
16800
UNEARNED REV
16800
4
ACC REC
180000
SERVICE REVENUE
180000
5
CASH
173000
ACC REC
173000
6
ACC PAY
16010
CASH
16010
*
Bad Debts
2256
Provision for Bad debts
2256
