Journal entries for the given examples for Luigi Tile Company: (Including transa
ID: 2535000 • Letter: J
Question
Journal entries for the given examples for Luigi Tile Company:
(Including transactions such as issuing shares, purchasing equipment, billing for a purchase... etc.)
Illustrations of the following journal entries as examples for your students: Luigi Tile Company issued 4,000 shares of stock to Mario Investors in exchange for 20 ira a share. o o Luigi Tile Company purchased tile cutting equipment for 200 lira on account. o Luigi Tile Company purchased 400 tiles from Tony, a local artisan, for 800 lira total. Luigi Tile Company agreed to pay for 50% of the tiles now and 50% in 3 months. Luigi Tile Company sold the Medici Family 300 tiles for 8 lira each. The Medici Family was billed for half of the purchase and paid the remainder immediately oExplanation / Answer
the following are the required journal entries:
(being 300 tiles sold out of 400 tiles purchased for 800 lire,
=> cost of goods sold = 300/400*800 lira =.600lira)
date / sno accounts debit (lira) credit (lira) 1 Cash a/c 80,000 ...........To Common stock a/c 80,000 (4,000 shares are issued at 20 lira each, resulting in total cash inflow of 4,000 shares * 20 =>80,000) 2 Tile cutting equipment a/c 200 .............To Accounts payable a/c 200 (being tile cutting equipment purchased on account ) 3 Inventory a/c 800 ... ................To Cash a/c 400 ................To Accounts payable - Tony a/c 400 (beng tiles worth 800 purchased from tony and 50% paid immediately and 50% to be paid later) 4 a Cash a/c 1,200 Accounts receivable , Medici family a/c 1,200 ............To Sales revenue a/c 2,400 (being 300 tiles sold @8 each =>2,400lira, half paid in cash immediately and half to be paid later =>2,400*1/2 =>1,200) 4 b Cost of goods sold 600 .............To Inventory a;c 600(being 300 tiles sold out of 400 tiles purchased for 800 lire,
=> cost of goods sold = 300/400*800 lira =.600lira)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.