Here are the trial balance and Balance Sheet Record the following entries in gen

Question

Here are the trial balance and Balance Sheet

Record the following entries in general journal form for December, 2017: December 1: Purchased Land for a future building site for $200,000, paying $40,000 down and signed a 10%, 90-day note for the balance. December 2: Purchased on account: $25,000 of Merchandise Inventory for the holiday season December 4: Bought back 500 shares of stock for $20 per share. December 5: Issued 5000 shares of restricted stock to its CFO. The stock has a fair value of $60,000. The service period related to this restricted stock is 5 years. Vesting occurs if the CFO stays with the company for 5 years. The par value of the stock is $1 December 8: Paid $5,000 on account December 15: Recorded cash sales of $19,000, cost of merchandise inventory was $9,400. December 16: Issued 1,000 shares of common stock at $9.00 per share December 20: Recorded sales on account of $73,000, cost of merchandise inventory was $35,000

Explanation / Answer

Date Account Title Debit Credit 1-Dec Land 200000 Cash 40000 10% 90-Day Note payable 160000 2-Dec Merchandise Inventory 25000 Account payable 25000 4-Dec Treasury stock 10000 Cash 10000 5-Dec Unearned compensation 60000 Common stock(5000*1) 5000 APIC 55000 8-Dec Account Payable 5000 Cash 5000 15-Dec Cash 19000 Sales revenue 19000 COGS 9400 Merchandise Inventory 9400 16-Dec Cash 9000 Common stock(1000*1) 1000 APIC (1000*8) 8000 20-Dec Accounts Receivable 73000 Sales revenue 73000 COGS 35000 Merchandise Inventory 35000 31-Dec 1.. Supplies expense 920 Supplies 920 (1220-300) 2 Depreciation expense 8002 A/D Equipment 8002 (36000-12000)*33.34% 3 Depreciation expense 16000 A/D Delivery Truck 16000 (90000-30000)*4/15 5 Rent expense 6120 PPD Rent 6120 (12240/6*3) 6 Insurance expense 1067 PPD Insurance 1067 (1600/12*8) 7 Retained Earnings 10000 Dividends Payable 10000 8 Unrealised holding loss 1300 Securities 1300 9 Bad debt expense 3730 Allowance for B/D 3730 ((58000+73000)*3%)-200 10 Salaries Expense 5000 Payroll taxes payable 1300 Salaries payable 3700 11 Utilities expense 500 Accounts payable 500 12 Interest expense 5766 Bond discount amortised 766 Interest payable 5000 13 Compensation expense 1000 Unearned compensation 1000 ( $ 60000/5 yrs./12 mths. 14 Interest expense 1315 Interest payable 1315 (160000*10%*30/365) 15 Income tax expense Income tax payable Effective interest rate Bond discount Amortisation Schedule Semi-annual period Stated Int.FV*2.5% Eff.Int(Previous BV*3%) Disc.amortised(3-2) Bal. in bondDiscount Bond payable (FV) BV of bonds(6-5) 1 2 3 4 5 6 7 0 8531 200000 191469 1 5000 5744 744 7787 200000 192213 2 5000 5766 766 7021 200000 192979 3 5000 5789 789 6231 200000 193769 4 5000 5813 813 5418 200000 194582 5 5000 5837 837 4581 200000 195419 6 5000 5863 863 3718 200000 196282 7 5000 5888 888 2830 200000 197170 8 5000 5915 915 1914 200000 198086 9 5000 5943 943 972 200000 199028 10 5000 5971 971 1 200000 199999

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.