How would you enter the Quickbooks Journal Entries for the following transaction

Question

How would you enter the Quickbooks Journal Entries for the following transactions:

5. Dec. 2, purchased $800 of supplies on credit under terms n/30 from Office Supplies Inc. Since these items are not going to be resold by Siesta Company (i.e. they are not inventory), sales tax at 7.5% must also be paid. Office Supplies Inc. invoice #5450 was received at time of purchase (use in your description) and enter “Office Supplies Inc. under the “name” column and then add as a vendor when prompted.

6. Dec. 19, received a quarterly dividend check for $180 from Chevron Corporation.

7. Dec. 27, pay Mattress World invoice #MWI233 for $8,000 with check #105. Note: Do not make a JE entry for this transaction. Rather complete the steps under item #10 on p. 16 of Part A [i.e. click on “Vendors”, “pay bills” and select the Mattress World invoice] and the system will automatically make the JE for you. Realize what is occurring here => under item #10 in Part A the invoice from Mattress World was received and entered into A/P but because terms were n/30 the invoice was not paid at that time, but now 30 days has almost passed.

8. Dec. 28, it was determined that the “packaging machine” was not needed for the business and thus it was sold for $8,000. Two entries are needed to record the disposal of fixed assets, one to catch-up the depreciation to the date of disposal (thus one month of depreciation needs to be recorded) and the second to record the disposal. Use the information given under step #1 on p. 5 from the Part A handout (related to the depreciation method to use, etc.) to help you record the two entries (use a reference of #12-8a and #12-8b when recording the two entries).

9. Dec. 28, sold 100 shares of the 200 shares of Chevron Corporation stock held as a short-term investment for $104.25 per share. $40 in brokerage fees were incurred to sell the stock. [hint: the $40 is a reduction in the “proceeds from sale” (i.e. reduces the amount of cash received); also, if ½ of the shares purchased were sold ½ of the cost recorded under #1 above needs to be removed from the books)

10. Dec. 29, the BOD of Siesta Company declared and paid a $2,200 dividend to stockholders. Check #106 was issued to the clearing house which tracks stock ownership and makes the dividend payments for Siesta Company.

11. Dec. 30, Jane Doe, a customer, walked into the store and purchased a comfort bed set (item #ComB1) for $1,800 and was also charged sales tax at 7.5%. Jane Doe wrote out her check #170 for $1,935 for payment in full.

Explanation / Answer

$ $ Date Accounts title Dr Cr 2-Dec Office Supplies 860 Accounts Payable 800 Sales Tax payable 60 (Being office supplies on accounts and sales tax payable credited to make the payment 19-Dec Cash 180 Dividend Income 180 27-Dec Accounts Payable (Mattress World click on it) 8000 Bank 8000 (Being payment made of Mattress wotld) 28-Dec Depreciation expense (for 1 month) X Accumulated Depreciation-Packing Machine X Cash X Accumulated Depreciation-Packing Machine X If Loss on disposal of packing machine X Packing Machine X If Gain on disposal of packing machine X the information for this is not available on this page please enter the data 28-Dec Cash (100*104.25)-40 10385 Loss on disposal of trading securities X Trading securities (100*purchase price) X Gain on disposal of trading securities X (The amount is not mentioned pf purchase please enter the amount if purchase price is more than sales price than loss otherwise gain and enter the amount) 29-Dec Retained earnings Dividend Payable (Declared Dividend) Dividend payable Cash (Paid dividend) 30-Dec Bank 1935 Sales 1800 Sales Tax Payable 135 Sales Tax Payable 135 Bank 135 (Being sales tax paid)

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