Required: Prepare Journal Entries for the following transactions December 15 Pai
ID: 2375404 • Letter: R
Question
Required: Prepare Journal Entries for the following transactions
December 15
Paid $3,000 for rent of a warehouse facility. The payment covers rent for December and January.
December 15
Declared a $1/share cash dividend, payable January 14 to shareholders of record on January 3.
December 18
Purchased office supplies of $1,600 on account.
December 31
Recorded depreciation for the year
Buildings have a 30-year life, a $5,000 residual value and use straight-line depreciation
Equipment has a 5-year life, no residual value and use double-declining balance depreciation
Vehicles have a 5-year life, no residual value and use straight-line depreciation
December 31
The allowance for doubtful accounts balance is estimated as follows:
2% of current balances are estimated as uncollectible
20% of past-due balances are estimated as uncollectible.
December 31
A count of office supplies shows $550 still on hand on December 31.
January 2, 2011
Paid salaries of $24,500 for the pay period December 31 through January 4. Salaries are earned evenly during the pay period.
December 15
Paid $3,000 for rent of a warehouse facility. The payment covers rent for December and January.
December 15
Declared a $1/share cash dividend, payable January 14 to shareholders of record on January 3.
December 18
Purchased office supplies of $1,600 on account.
December 31
Recorded depreciation for the year
Buildings have a 30-year life, a $5,000 residual value and use straight-line depreciation
Equipment has a 5-year life, no residual value and use double-declining balance depreciation
Vehicles have a 5-year life, no residual value and use straight-line depreciation
December 31
The allowance for doubtful accounts balance is estimated as follows:
2% of current balances are estimated as uncollectible
20% of past-due balances are estimated as uncollectible.
December 31
A count of office supplies shows $550 still on hand on December 31.
January 2, 2011
Paid salaries of $24,500 for the pay period December 31 through January 4. Salaries are earned evenly during the pay period.
Explanation / Answer
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