Required: Journalize the entries to record the transactions. Assume 360 days in
ID: 2459615 • Letter: R
Question
Required:
Journalize the entries to record the transactions. Assume 360 days in a year. For a compound entry, if an amount box does not require an entry, leave it blank.
Jan. 3
Feb. 10-sale
Feb. 10-cost
Feb. 13-sale
Feb. 13-cost
Mar. 12
Mar. 14
Apr. 3
May 11
May 13
July 12
Aug. 1
Oct. 5-sale
Oct. 5-cost
Oct. 15
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Hint(s)
Journalize the entries to record the transactions. Assume 360 days in a year. For a compound entry, if an amount box does not require an entry, leave it blank.
Jan. 3
Feb. 10-sale
Feb. 10-cost
Feb. 13-sale
Feb. 13-cost
Mar. 12
Mar. 14
Apr. 3
May 11
May 13
July 12
Aug. 1
Oct. 5-sale
Oct. 5-cost
Oct. 15
Explanation / Answer
Answer:
It has been assumed that organization follows perpetual inventory system. Cost of goods sold has been debited as and when sales are made.
Journal Entries Date Accounts Debit $ Credit $ Jan 3 8% Note Receivable 18,000.00 Cash 18,000.00 (Loaned to Trina Gelhaus) Feb 10 Account Receivable 24,000.00 Revenue/Sales 24,000.00 Cost of goods sold 14,400.00 Inventory 14,400.00 (Sold goods to Bradford & Co.) Feb 13 Account Receivable 60,000.00 Revenue/Sales 60,000.00 Cost of goods sold 54,000.00 Inventory 54,000.00 (Sold goods to Dry Creek & co.) Mar 12 7% Note Receivable 24,000.00 Account Receivable 24,000.00 (7% Note received from Bradford & Co.) Mar 14 9% Note Receivable 60,000.00 Account Receivable 60,000.00 (9% Note received from Dry Creek & co.) Apr 03 9% Note Receivable 18,000.00 8% Note Receivable 18,000.00 (Renewal of 8% note receivable to 9% note receivable for 120 days) Cash 360.00 Interest Income 360.00 (Interest received from Trina Gelhaus for 90 days 18,000 * 90/360 * 8%) May 11 Cash 24,280.00 7% Note Receivable 24,000.00 Interest Income 280.00 (Interest 24000*60/360*7%and Note amount received from Bradford & Co.) May 13 Account Receivable 60,000.00 9% Note Receivable 60,000.00 (9% Note dishonored by Dry Creek & co.) July 12 Cash 62,118.00 Account Receivable 60,000.00 Interest Income (See Note 1) 2,118.00 (Due amount received from Dry Creek & co. along with interest) Aug 01 Cash 18,540.00 9% Note Receivable 18,000.00 Interest Income 540.00 (Interest 18000*120/360*9%and Note amount received from Trina Gelhaus) Oct 05 Account Receivable 13,500.00 Revenue/Sales 13,500.00 Cost of goods sold 8,100.00 Inventory 8,100.00 (Sold goods to Halloran Co.) Oct 15 Cash 13,230.00 Account Receivable 13,500.00 Discount Expenses 270.00 (Due amount received from Halloran Co. and discount allowed @2%)Related Questions
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