Equipment $160,000 Unearned Revenues $50,000 Inventory $ 95,000 Accounts Payable
ID: 2378046 • Letter: E
Question
Equipment
$160,000
Unearned Revenues
$50,000
Inventory
$ 95,000
Accounts Payable
$60,000
Accounts Receivable
$ 20,000
Accumulated Depreciation - Equipment
($30,000)
Building
$100,000
Accumulated Depreciation - Bldg
($50,000)
Cash
$ 150,000
Note Payable
$140,000
Supplies
$ 12,000
Capital Stock
$150,000
Prepaid Rent
$ 15,000
Retained Earnings, beg. bal.
$172,000
Land
$100,000
1. Employee salaries in the amount of $55,000 were incurred for the year. Of that amount, $50,000 had been paid in cash, the remainder was still owed to employees at the end of the year. Record the journal entry necessary at December 31, 2005 to account for both the paid and unpaid portion of salaries.
2. At the end of the year, $5,000 of the supplies remained on hand. Record the adjustment necessary at December 31, 2005.
3. The company paid $20,000 on their accounts payable during the year. Record the entry.
HOW WOULD WE PUT NUMBERS 1, 2 AND 3 IN JOURNAL ENTRIES??? THANKS FOR THE HELP
Equipment
$160,000
Unearned Revenues
$50,000
Inventory
$ 95,000
Accounts Payable
$60,000
Accounts Receivable
$ 20,000
Accumulated Depreciation - Equipment
($30,000)
Building
$100,000
Accumulated Depreciation - Bldg
($50,000)
Cash
$ 150,000
Note Payable
$140,000
Supplies
$ 12,000
Capital Stock
$150,000
Prepaid Rent
$ 15,000
Retained Earnings, beg. bal.
$172,000
Land
$100,000
Explanation / Answer
1. Salaries & Wages Expense -Debit $55,000
Cash Credit 50,000
Salaries & Wages Payable Credit 5,000
Supplies expense Dr. 7000
supplies Cr. 7000
(Supplies Used=12000-5000=7000)
3. Accounts Payable Debit 20,000
Cash credit 20,000
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