(25 pts.) Simons Co. sells winter coats to customers through several retail stor
ID: 2600317 • Letter: #
Question
(25 pts.) Simons Co. sells winter coats to customers through several retail stores. Simons Co. entered into the following transactions in September 2008 Sep. Paid $12,800 rent for the office for September. Sep. 3 Received payment from customers from prior credit sales, $112,000. Sep. 8 Purchased a building for $82,800, issuing a note with a four year maturity Repaid $20,000 due to the bank from a note issued in July. Paid $24,000 for insurance for the next two years. Paid $842 for advertisements to be run in a local newspaper in September. Paid $2,200 to repair the sidewalk in front of the office building. Paid $4,200 for utilities for the office for September. Sep. 12 Sep. 18 Sep. 22 Sep. 28 Sep. 30 Simons prepares its financial statements monthly. Required: Prepare journal entries to record the transactions above.Explanation / Answer
1 Journal entries in the books of Simons Co, Date Accounts's tittle Debit $ Credit $ 2008 Sep-01 Rent Expenses 12,800 Cash 12,800 (To be record payment of rent for the month of september) Sep-03 Cash 1,12,000 Accounts receivable 1,12,000 ( To be record cash receipt from accounts receivable ) Sep-08 Building 82,800 Notes Payable 82,800 ( To be record purchase of Building as against issue of notes payable ) Sep-12 Notes Payable 20,000 Cash 20,000 ( Refund of notes payable) Sep-18 Prepaid Insurance 24,000 Cash 24,000 ( Payament of prepaid insurance for two years) Sep-22 Advertisement expenses 842 Cash 842 ( Payment of advertisement expenses) Sep-28 Repaires and maintenance of building 2,200 Cash 2,200 ( Payment of repair of office building) Sep-30 Utility expenses 4,200 Cash 4,200 ( Payment of utility expenses for the month of september)
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