37 A bill from the computer consulting firm for one year of maintenance and supp

Question

37 A bill from the computer consulting firm for one year of maintenance and support was found. The bill covers service from 2,400 October 1, 2016 to September 30, 2017. Record the entire bill in account 321 38 EZ Lift Company notified Ozark that it had earned a $7,000 rebate 7,000 on 2016 purchases. The rebate was earned by meeting a volume target. $1,500 of the rebates apply to lifts in the year-end inventory. The rebate will be paid to Ozark in early Jan. 2017. You may need to create an appropriate account for this new transaction. 1,400 400 Christmas cards were sent to customers. Inside the card, there 39 was a coupon offering a 10% discount on all sporting equipment purchased in January of 2017. Last year, customers saved $3,000 using similarcoupons. Theprintingandmailingcostswere paid -, Ozark rented a new storage building starting Jan. 1, 2017. The agreement is month to month but requires a 3-month notice for ending the rental. Ozark paid $3,000. S1,000 is rent for January 2017 and $2,000 is a security deposit. You may need to create an appropriate account for this new transaction. 40 3,000 Your amt. Your amt. Your amt. Your amt. 7,600 Dec. 26,1 Paid wages due to all employees 2 Paid FICA and Medicare Paid income tax withholdings Paid sales taxes due The $7,600 check for the sale of the truck was dated January 2, 2017. The sales agent agreed to take the postdated check. The office manager did not notice the date when making the deposit. The bank has now returned the check and charged a S20 fee for a bad check. Transfer $30,000 to Money Market Account The bank notified Ozark that S1,900 interest had been added to their money market account. The bank notified Ozark that the credit card fees for sales made on credit cards was $64. That amount was deducted from the checking account. 4 30,000 1,900

Explanation / Answer

Dec 26,

1-4

Journal Entries Date Particulars Debit $ Credit $ 37 Maintaice and support a/c Dr. 2,400 To Account Payable 2,400 (Maintenance and Support charges recorded) 38 Rebate Receivable a/c Dr. 7,000 To Inventory 1,500 To Cost of Goods Sold 5,500 (Being Rebate earned ) 39 Printing and Mailing a/c Dr. 1,400 To Cash 1,400 (Being Printing and mailing cost paid) 40 Rent a/c Dr. 1,000 Security Deposit a/c Dr. 2,000 To Cash 3,000 (Rent and Security Deposit for Rent Paid)

Dec 26,

1-4

Wages a/c Dr. XXX FICA and Medicare a/c Dr. XXX Income Tax a/c Dr. XXX Sales Tax a/c Dr. XXX To Cash XXXX (Being wages, FICA & Medicare and Taxes Paid) 5 Cash a/c Dr. 7,600 Fees a/c Dr. 20 To Bank 7,620 (Cheque returned and bank charges the fees) 6 Money Market a/c Dr. 30,000 To Bank 30,000 (Being money transferred to Money Market account) 7 Money Market a/c Dr. 1,900 To Interest 1,900 (Interest credited to money market account) 8 Credit Card Fees a/c Dr. 64 To Bank 64 (Being Credit Card fees deducted)

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