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You are the controller at Star Wars, Inc. you must Create Journal Entries for th

ID: 2476079 • Letter: Y

Question

You are the controller at Star Wars, Inc. you must Create Journal Entries for the following transactions.

On Dec. 1 Paid off balance of $45,800 owed to Ewok Inc. No discount applies.

On Dec. 1 Sold 250 units to Storm Troopers Unlimited on account for $800 each.

On Dec. 2 Received a check in the amount of $23,569 from Jango Fett Inc. in full payment of an invoice dated November 27 in the amount of $24,050.

On Dec. 2 Paid bill of $2,010 to Star Destroyer Repairs in payment of fighter repairs.

On Dec. 3 Sold 200 units to Vader Enterprises on account for $805 each.

On Dec. 3 Paid Greedo Inc. $59,420 in full payment of an A/P balance

On Dec. 6 Purchased 500 units from Calrisian's Components on account for $360 each, terms net/45

On Dec. 6 Paid $65,471 to Wamp Rat, Co. in full payment of the invoice from Nov.

On Dec. 6 Received a notification that Bosk Co. has declared bankruptcy and collection of the amounts Bosk Co. owes is unlikely. The accounts receivable balance should be written off.

On Dec. 7 Received a check in the amount of $45,000 from R2D2 Computers in partial payment of the balance they owe (no discounts apply) from a Nov. 15 sale of $95,900

On Dec. 7 Received a check in the amount of $49,294 from C3PO Co. in full payment of a sales invoice dated Nov. 27 for $50,300.

On Dec. 7 Sold 185 units to Jango Fett, Inc. on account for the amount of $810 each.

On Dec. 10 Received payment of $72,863 from Jabba's Huts, Inc. in full payment of an invoice dated Nov. 30 for $74,350.

On Dec. 10 Sold 300 units to Wookie Inc. on account for $810 each.

On Dec. 10 Paid bill for $720 for special effects consulting. Use misc. expenses.

On Dec. 10 Purchased 400 units from Land Speeder, Inc. on account for $365 each, terms n/30

On Dec. 11

Paid bi-weekly wages via payroll checks. The payroll summary is below:

Employee wages (gross) $5,210
FICA taxes withheld 399
Federal income taxes withheld 980
State income taxes withheld 240
Net pay $3,591

Employer's payroll taxes:
FICA tax $399
(no FUTA or SUTA)

On Dec. 11 Received payment of $22,000 from C3PO Co. in full payment for an invoice dated Nov. 14th. No discount applies.

On Dec. 11 Sold 305 units to Princess Leia Co. for a total of $815 each on account.

On Dec. 12 Sold 165 units to R2D2 Computers on credit for $815 each.

On Dec. 12 Paid invoice dated Nov. 12 in the amount of $37,829 (no discounts apply). The supplier was Count Dooku Consulting.

On Dec. 12 Paid $75,250 to Ewok Inc. for an invoice dated Nov. 28.

On Dec. 13 Received payment from Endor Limited for an invoice dated November 15th in the amount of $27,120.

On Dec. 13 Sold 250 units to Vader Enterprises on account for $820 each.

On Dec. 14 Received payment from Jango Fett Inc. from the Dec. 7th sale. Fett Inc. qualifies for the discount.

On Dec. 14 R2D2 Computers receives an allowance for 50 units from the Dec. 13 sale for decrease in sales of $41,000 ($820 each).

On Dec. 15 Received payment from Wookie Inc. for the Dec. 10 sale, net of the discount.

Explanation / Answer

Answer:

Journal Entries Date Accounts Debit $ Credit $ Dec 01 Accounts Payable      45,800.00 Cash      45,800.00 Dec 01 Accounts Receivable    200,000.00 Sales/Revenue    200,000.00 Dec 02 Cash      23,569.00 Discount expenese            481.00 Accounts Receivable      24,050.00 Dec 02 Repair Expenses        2,010.00 Cash        2,010.00 Dec 03 Accounts Receivable    161,000.00 Sales/Revenue    161,000.00 Dec 03 Accounts Payable      59,420.00 Cash      59,420.00 Dec 06 Purchases    180,000.00 Accounts Payable    180,000.00 Dec 06 Accounts Payable      65,471.00 Cash      65,471.00 Dec 06 Bad Debts                     -   Accounts Receivable                     -   Dec 07 Cash      45,000.00 Accounts Receivable      45,000.00 Dec 07 Cash      49,294.00 Discount expenese        1,006.00 Accounts Receivable      50,300.00 Dec 07 Accounts Receivable    149,850.00 Sales/Revenue    149,850.00 Dec 10 Cash      72,863.00 Discount expenese        1,487.00 Accounts Receivable      74,350.00 Dec 10 Accounts Receivable    243,000.00 Sales/Revenue    243,000.00 Dec 10 Misc. Expenses            720.00 Cash            720.00 Dec 10 Purchases    146,000.00 Accounts Payable    146,000.00 Dec 11 Salary Expenses        5,210.00 FICA taxes            399.00 Federal income taxes            980.00 State income taxes            240.00 Cash        3,591.00 Dec 11 Payroll taxes expenses            399.00 FICA taxes            399.00 (Note: FICA, Federal and State taxes will be debited and cash will be credited once they are paid to Govt.) Dec 11 Cash      22,000.00 Accounts Receivable      22,000.00 Dec 11 Accounts Receivable    248,575.00 Sales/Revenue    248,575.00 Dec 12 Accounts Receivable    134,475.00 Sales/Revenue    134,475.00 Dec 12 Accounts Payable      37,829.00 Cash      37,829.00 Dec 12 Accounts Payable      75,250.00 Cash      75,250.00 Dec 13 Cash      27,120.00 Accounts Receivable      27,120.00 Dec 13 Accounts Receivable    205,000.00 Sales/Revenue    205,000.00 Dec 14 Cash    149,850.00 Discount expenese Accounts Receivable    149,850.00 (Discount allowed is missing in question) Dec 14 Sales/Revenue      41,000.00 Accounts Receivable      41,000.00 Dec 15 Cash    243,000.00 Discount expenese Accounts Receivable    243,000.00 (Discount allowed is missing in question)
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