Triple C is a PA hardware retailer. It prepares its accounting reccords on the a

Question

Triple C is a PA hardware retailer. It prepares its accounting reccords on the accrual basis under Generally Accepted Accounting Principles. It uses a perpetual inventory system. The following transactions have taken place during the month of April. Prepare the accounting entries in good journal entry form"

A. Triple C borrowed $100,000 from its bank under a load due in six months with an anual interest rate of 6%.

B. As of April 30th, Triple C has not paid any interest to the bank. Journalize the necessary entry.

C. Triple C gave a check in the amount of $10,000 to Billings and Fees, as a retainer for future services.

D. During April, Hugh Billings spent 3 hours on the Triple C account at $250 per hour.

E. On April 15th, Triple C purchased inventory on account costing $75,000 which it expected to sell for $125,000 under terms of 1/10, n/30, which it paid one week later

F. During April, sales totaled $100,000. $50,000 were cash sales and $50,000 were on account

G. Triple C estimates its bad debt expense at 1% of sales

H. Accepted from customers the return of merchandise sold for cash for $1,000.

I. Received a debt memorandum with its bank statement as of April 30th for credit card processing costs of $1,089.

J. Was unable to locate the customer who wrote the bad check returned by the bank.

Thank you so much!

Explanation / Answer

Journal entry for the month of april

A. Bank a/c dr. $100000

To loan. $100000

(Being amount borrowed)

B. 30/4

Interest a/c dr. 500

To loan 500

(Beint interst due on loan @6% p.a for a month)

C. Prepaid expenses 10000

To bank. 10000

(Being amount paid in advance for billing and repairs)

D . Billing and fees a/c dr.750

To prepaid expenses 750

(Being amount charged @250per hour for 3 hours)

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