E3-9 Recording Journal Entries and Determining Net Income [LO 3-2, LO 3-3] Sysco

Question

E3-9 Recording Journal Entries and Determining Net Income [LO 3-2, LO 3-3]

Sysco, formed in 1969, is America

Sysco, formed in 1969, is America

E3-9 Recording Journal Entries and Determining Net Income [LO 3-2, LO 3-3] Sysco, formed in 1969, is America's largest marketer and distributor of food service products, serving nearly 250,000 restaurants, hotels, schools, hospitals, and other institutions. The following transactions are typical of those that occurred in a recent year, but the amounts are simplified. Borrowed $101,000 from a bank, signing a short-term note payable. Provided $106,300 in service to customers, with $100,100 on account and the rest received in cash. Purchased equipment for $146,000 in cash. Paid employee wages of $2,450. Received $430 on account from a customer. Paid $4,850 cash for travel costs during the year. Paid $9,100 cash on accounts payable. Incurred $24,300 in utility expenses during the year, of which $18,800 was paid in cash and the rest owed on account. For each of the above transactions, prepare accrual basis journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Explanation / Answer

Hi,

Please find the answer as follows:

Part B:

Cash (106300 - 100100) Dr. 6200

Accounts Receivable Dr. 100100

Service Revenue Cr. 106300

Part H:

Utilities Expense Dr. 24300

Cash Cr. 18800

Accounts Payable Cr. 6500

Preliminary Net Income = 106300 - 2450 - 4850 - 24300 = 74700

Thanks.

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