E3-12 and E3-13 Recording and Posting Accrual Basis Journal Entries and Preparin
ID: 2407910 • Letter: E
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E3-12 and E3-13 Recording and Posting Accrual Basis Journal Entries and Preparing an Unac The following information applies to the questions displayed below.] Ricky's Plano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, Its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash Accounts Receivable Supplies Equipment Land Building $9,350 24,000 Unearned Revenue (deposits) 4,850 47750 9,500 11,300 $6,950 Accounts Payable 2,250 Notes Payable 10,200 Common Stock 7550 Retained Earnings 31,800 Following are the January 2013 transactions: a. Received a $550 deposit from a customer who wanted her piano rebuilt in February. b. Rented a part of the building to a bicycle repair shop: $400 rent received for January. C. Delivered five rebuilt pianos to customers who paid $16,975 in cash. d. Delivered two rebuilt pianos to customers for $8.900 charged on account. e. Received $6,850 from customers as payment on their accounts. f. Received an electric and gas utility bill for $375 for January services to be paid in February g. Ordered $1170 in supplies h. Paid $1,650 on account in January . Paid $17,900 in wages to employees in January for work done this month. J. Received and paid cash for the supplies in (g ReferencesExplanation / Answer
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Transaction General Journal Debit Credit a. Cash 550 Unearned revenue 550 (To record deposit received) b. Cash 400 Rent revenue 400 (To record rent revenue received) c. Cash 16975 Service revenue 16975 (To record service revenue earned in cash) d. Accounts receivable 8900 Service revenue 8900 (To record service revenue earned on account) e. Cash 6850 Accounts receivable 6850 (To record collections on account) f. Utility expense 375 Accounts payable 375 (To record utility bill received) g. No journal entry required h. Accounts payable 1650 Cash 1650 (To record payment on account) i. Salaries and wages expense 17900 Cash 17900 (To record wages paid) j. Supplies 1170 Cash 1170 (To record cash purchase of supplies)Related Questions
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