Vigeland Company completed the following transactions during 2014. The annual ac
ID: 2491344 • Letter: V
Question
Vigeland Company completed the following transactions during 2014. The annual accounting period ends December 31, 2014. Jan. 15 Purchased and paid for merchandise for resale at an invoice cost of $15,600; periodic inventory system. Apr. 1 Borrowed $850,000 from Summit Bank for general use; executed a 9-month, 7 percent interest-bearing note payable. June 14 Received a $32,000 customer deposit from Mark Muller for services to be performed in the future. July 15 Performed $4,350 of the services paid for by Mr. Muller. Dec. 12 Received electric bill for $26,660. The company will pay it in early January. 31 Determined wages of $22,000 earned but not yet paid on December 31 (disregard payroll taxes). 2.value: 10.00 pointsRequired information Required: 1. Prepare journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Explanation / Answer
Vigeland Company
Journal Entries
Date Particular Debit $ Credit $ 15-Jan Purchase 15600 To cash 15600 (Being Purchased and paid formerchandise for resale at an invoice cost of $15,600;) 1-Apr Cash 850,000 Notes Payable,Short term 850,000 (Being-entry for Borrowed $850,000 from Summit Bank for general use; executed a 9-month) 14-Jun Cash 32000 Unearned Revenue 32000 (Being Entry for amount of Received a $32,000 customer deposit from Mark Muller for services to be performed in the future) 15-Jul Unearned Revenue 4350 To Revenue 4350 (being Entry for Performed $4,350 of the services paid for by Mr. Muller.) 12-Dec Electric expense 26660 Electric expense Payable 26660 (being Entry for Electric expense Payable) 31-Dec Wage expense 22000 Wages payable 22000 (being Entry for Wages payable) 31-Dec Interest expense 44625 Interest payable 44625 (850,000*7%*9/12) (being Entry for interest payable)
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