Create a journal entry with the following transactions. ***NOTE*** the transacti

Question

Create a journal entry with the following transactions.

***NOTE*** the transaction for post ref 74 is....

"CS Company forecasted that they would need to borrow cash to support their growth strategy. They will increase inventory balances and purchase long-term assets. They borrowed $1,471 at 6.1% to be repaid in a lump sum in 36 months."

QTR 4 Understanding of Chapter 8 is required prior to starting these transactions 56 57 10/2/2016 Paid $730 of Accounts Payable 10/10/2016 CS Corporation collected $820 from customers that was in Accounts Receivable. 10/18/2016 $347 was paid to purchase the assets of a small company CS Company wanted to own. The appraised value of the assets was $307 which included $210 for a patent, and the remainder was various lab equipment. CS Company also took on the accrued current liabilities of the business amounting to $96. The remainder is assumed to be goodwill. 10/30/2016 76 shares of CS Company stock were repurchased for $1 per share 10/31/2016 Record the total of October sales: Sales of $640 were made, and $400 worth of inventory was shipped out. 58 59 60 61 11/2/2016 CS Corporation collected $675 from customers that was in Accounts Receivable. 11/14/2016 Re-sold treasury stock that had originally cost $84 for $52. The difference should be a reduction from Additional Paid in Capital 11/26/2016 Dividends of $101 are declared for common shareholders as of the date of record of 12/26/16, to be paid on 1/26/17 11/28/2016 Debt payment was made of $1,909, representing the amount shown as "short term borrowings" at the end of the prior year 11/29/2016 $1,771 of the long-term debt must be paid in 2017, and therefore must be classified as "short term borrowings." Reclassify this amount. 11/30/2016 Record the total of November sales: Sales of $975 were made, and $630 worth of inventory was shipped out. 63 64 65 12/2/2016 CS Company closed a division. As a result, they had to layoff close to 100 employees, and they paid severance amounting to S55 These costs will be labeled as 'restructuring charges' and GAAP permits them to be put on a separate line item so that it is clear that they are non-recurring 12/4/2016 CS Corporation collected $850 from customers that was in Accounts Receivable 67 68 69 12/6/2016 Paid $500 of Accounts Payable 12/10/2016 The tax provision was calculated based on estimates, and the S347 tax expense was recorded. $18 of this was added to the accrual to be paid in the upcoming year $59 of it was added to the long term liability for deferred taxes, and $270 was paid now as an estimated payment of current year taxes. 70 12/29/2016 S60 was paid for administrative expenses. 71 72 73 12/30/2016 Depreciation was recorded of $249. All depreciation relates to administrative building, furniture and fixtures. 12/31/2016 The average debt outstanding during the year was $3,143. Accrue the interest expense for the year to be paid in January 2017, amounting to 1.75% 12/31/2016 Record the total of December sales: Sales of $530 were made, and $290 worth of inventory was shipped out. Amortization of the patent was recorded for $56. All amortization expense is recorded as "other expense." of the principal balance. Interest payable is considered an accrued liability. This balance does NOT included the borrowing from April 1, 2016. See Transaction 74 74 12/31/2016 Record the interest for 9 months on the note payable that was taken out on April 1. Round to the nearest whole dollar

Explanation / Answer

Date General Journal Posr Ref. Debit Credit 10/2/2016 Accounts payable 55 $730 Cash 55 $730 10/10/2016 Cash 56 $820 Accounts receivable 56 $820 10/18/2016 Patent 57 $210 Lab equipment 57 $97 Current liabilities 57 $96 Goodwill 57 $136 Cash 57 $347 10/30/2016 Treasury stock 58 $76 Cash 58 $76 10/31/2016 Account receivable 59 $640 Sales 59 $640 Cost of goods sold 59 $400 Inventory 59 $400 11/2/2016 Cash 60 $675 Accounts receivable 60 $675 11/14/2016 Cash 61 $52 Additional paid in capital 61 $32 Treasury stock 61 $84 11/26/2016 Retained earnings 62 $101 Dividend payable 62 $101 11/28/2016 Short term borrowings 63 $1,909 Cash 63 $1,909 11/29/2016 Long term debt 64 $1,771 Short term borrowings 64 $1,771 11/30/2016 Account receivable 65 $975 Sales 65 $975 Cost of goods sold 65 $630 Inventory 65 $630 12/2/2016 Restructuring charges 66 $55 Cash 66 $55 12/4/2016 Cash 67 $850 Accounts receivable 67 $850 12/6/2016 Accounts payable 68 $500 Cash 68 $500 12/10/2016 Tax expenses 69 $347 Deferred tax liability 69 $59 Tax payable 69 $18 Cash 69 $270 12/29/2016 Administrative expenses 70 $60 Cash 70 $60 12/30/2016 Depreciation expense 71 $249 Administrative building, furnitures & fixtures 71 $249 Other expenses 71 $56 Patent 71 $56 12/31/2016 Interest expense 72 $55 (1.75% of 3143=3143*0.0175)= 55.0025 Interest payable 72 $55 12/31/206 Account receivable 73 $530 Sales 73 $530 Cost of goods sold 73 $290 Inventory 73 $290 12/31/2016 Interest expense 74 $67 (1471*0.061*(9/12)= 67.29825 Interest payable 74 $67

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