Journalize the selected transactions by the Gampfer Company During its fiscal ye
ID: 2386186 • Letter: J
Question
Journalize the selected transactions by the Gampfer Company During its fiscal year ending Dec 31 were as follows
January 2: Issued a check to establish a petty cash fund of $3,200.
March 14: Replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, $1200; miscellaneous selling expense, $410; miscellaneous administrative expense, $620.
April 21: Purchased $22,400 of merchandise on account, terms 1/10, n/30. The perpetual inventory system is used to account for inventory.
May 20: Paid the invoice of April 21 after the discount period had passed.
May 23: Received cash from daily cash sales for $15,120. The amount indicated by the cash register was $9,545.
June 15: Received a 60-day, 10% note for $127,500 on the Cady’s account
August 14: Received amount owed on June 15 note, plus interest at the maturity date.
August 18: Received $5,400 on the Yoder account and wrote off the remainder owed on a $6,400 accounts receivable balance. (The allowance method is used in accounting for uncollectible receivables
Sept 9: Reinstated the Yoder account written off on August 18 and received $960 cash in full payment.
September 15: Purchased land by issuing a $480,000, 90-day note to Ace Development Co., which discounted it at 8%.
October 17: Sold office equipment in exchange for $96,000 cash plus receipt of a $64,000 90-day, 6% note. The equipment had cost $224,000 and had accumulated depreciation of $44,800 as of October 17
Nov 30. Journalized the payroll for November, based on the following data
Salaries Deductions
Sales salaries $96,640 Income tax $28,00
Office Salaries $55,200 Social Security 9,110
Medicare $2,278
151,840
Unemployment tax rates:
State unemployment 4.0%
Federal Unemployment 0.8%
Amount subject to unemployment tax:
State unemployment $5,000
Federal Unemployment $5,000
30. Journalize the employer payroll taxes on payroll
Dec14 Journalize the payment of Sept 15 note at maturity
Dec 31 the pension cost the year $136,00 of which $99,840 was paid to the pension plan trustee.
Explanation / Answer
Amount in $. JOURNAL
Jan 2. Cash A/c..........Dr. 3,200
TO bank A/c 3,200
Mar 14. Office supplies A/c........Dr. 1200
Selling expenses A/c......Dr. 410
Administrative expenses A/c......Dr. 620
To cash A/c 2210
Apr 21. Merchandise goods A/c............Dr. 22400
TO Accounts payable A/c 22400
May 20. Accounts payable A/c..........Dr. 22400
To cash A/c 22400
MAy 23. Cash A/c............Dr. (15,120- 9,545) 5,575
June 15. Notes Receivable A/c...........Dr. 127,500
To Accounts Receivable A/c 127,500
Aug. 14 Cash A/c...................Dr. 129,625
To interest received A/c 2125
To Notes receivable A/c 127500
Aug 18. Cash A/c...................Dr. 5400
Bad debts A/c...........Dr. 1000
To Accounts Receivable A/c 6400
Sep 9. Cash A/c.................Dr. 960
To bad debt recovery A/c 960
Sep 15. Land A/c............Dr. 480000
To Notes payable A/c 480000
Oct 17 Cash A/c..........Dr. 96000
Notes receivable A/c........Dr. 64000
Loss on sale of equipment A/c.......Dr. 19200
To Equiment A/c(224000-44800) 179200
Nov Payroll
Salaries A/c(96,640+55200)..........Dr. 151,840
Income tax A/c.............Dr. 2800
Social Security A/c.............Dr. 9110
Medicare A/c..............Dr. 2278
State employment tax A/c......Dr. 5000
State unemployment tax A/c......Dr. 5000
To Cash A/c 176028
Dec 14 Notes payable A/c............Dr. 480,000
Interest paid A/c.........Dr.(480000*8%*3/12) 9600
To cash A/c 489,600
Dec 31 Pension fund A/c........Dr. 136000
To cash A/c 99840
To pension fund payable A/c 36140
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