- Prepare the journal entries for the transactions listed. Note: 1. Do not use $
ID: 2565804 • Letter: #
Question
- Prepare the journal entries for the transactions listed.
Note:
1. Do not use $ symbols in any of the entries
2. Do not use the words Dr. or Cr. in the journal entries
3. When writing the amounts please use commas and pennies.
4. Instead of using a date for each transaction, simply use the number corresponding to the transaction below
5.Do not use any account numbers for these transactions
6. Skip one single blank line in between each journal entry.
7. Do not write any descriptions for the jounal entries.
- None of the following entries are related. Don't try to connect them to each other, simply record the journal entry based on the information contained in each individual transaction.
TRANSACTIONS: (Each transaction is worth four (4) points) 1. The company purchased $50,000 merchandise inventory on account terms 2/10, n/30. The company uses the periodic method of inventory 2. The company sold merchandise costing $40,000 for $100,000 cash. The company uses the perpetual method of inventory 3. The company loaned $10,000 to an employee with interest at 2%. The loan is due in sixty days. 4. The company record depreciation expense for 12 months on equipment it previousiy purchased in the amount of $500,000 with a salvage value of $50,000 and an estimated useful life of 10 years. The company uses the straight line method The company purchased a copyright by singing a note payable in the amount of $800,000 The company recorded a bad debt expense in the amount of $50,000 using the direct write off method The company collected $10,000 cash on an account receivable that had been previously written off using the allowance method The company issued preferred stock in the amount of $50,000 in exchange for a note payable it owed a vendor The company made a cash principal payment on a note payable in the amount of $10.000 plus the interest expense that was due at the time of payment in the amount of $1,000. The interest expense had been previously accrued for The company received cash in the amount of $88,000 representing payment of a note receivable and $8,000 of interest income that had not been previously accounted for The company paid cash in advance for 24 months of insurance in the amount of $55,000 The company received $85,000 cash from a new customer in advance for printing services it would receive from the company next year The company paid $25,000 cash for mining rights to a diamond mine The company record amortization expense on a patent it previously purchased in the amount of $900,000 using the straight line method. The life of the patent was 20 years The company returned $5,000 of merchandise inventory it previously purchased on account, but had not yet paid for, because it was defective The company received $110,000 cash for payment in full for an account receivable in the amount of $115,000 net of the discount taken by the customer The company earned $50,000 of service revenue in the current month that was previously recorded as a deferred liability The company paid $50,000 cash, net of a $5,000 discount, for an invoice previously record as an accounts payabie. The company uses the perpetual method of accounting The company reserved $10,000 of bad debt expense using the allowance method The company accrued income tax expense in the amount of $30,000 The company paid a cash dividend on its 10,000 shares of preferred stock at 8% The company sold furniture it owned with a historical cost of $100,000 and accumulated depreciation of $80,000 for $10,000 cash and a $5.000 note receivable due in 30 days The company estimated the current month warranty expense payable at $45,000 for equipment sales it made in the current month The company computed that $1,500,000 worth of diamonds this month were extracted from a mine it previously purchased the rights to for $21 The company issued a long term bond payable in exchange for $5,000,000 cash. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. ,000,000Explanation / Answer
S No Account Debit Credit 1 Purchases 50000 Accounts Payable 50000 2 Accounts Receivable 100000 Sales 100000 Cost of goods sold 40000 Inventory 40000 3 Loans and Advances 10000 Cash and Bank 10000 4 Depreciation 45000 Equipment 45000 5 Copyright 800000 Notes Payable 800000 6 Profit and loss A/c 50000 Accounts Receivable 50000 7 Account Receivable 10000 Allowance for Bad debt 10000 Cash and Bank 10000 Accounts Receivable 10000 8 Notes Payable 50000 Preferred Stock 50000 9 Notes Payable 10000 Interest Payable 1000 Cash and Bank 11000 10 Cash and Bank 88000 Notes Receivable 80000 Profit and Loss A/c 8000 11 Loans and Advances 55000 Cash and Bank 55000 12 Cash and Bank 85000 Advance from Customers 85000 13 Mining Rights 25000 Cash and Bank 25000 14 Amortization 4500 Patent 4500 15 Account Payable 5000 Inventory 5000 16 Cash and Bank 110000 Profit and Loss A/c 5000 Account Receivable 115000 17 Deferred Liability 50000 Profit and loss A/c 5000 18 Accounts Payable 55000 Cash and Bank 50000 Discount 5000 Discount 5000 Profit and Loss A/c 5000 19 Allowance for Bad debt 10000 Account Receivable 10000 20 Profit and loss A/c 30000 Provision for Taxes 30000 21 Dividend 8000 Cash and Bank 8000 22 Cash and Bank 10000 Notes Receivable 5000 Profit and Loss a/c 5000 Accumulated Depreciation 80000 Furniture 100000 23 Profit and Loss A/c 45000 Warranty Expense Payable 45000 24 Diamond Inventory 1500000 Extraction Rights 1500000 25 Cash and Bank 5000000 Long term Bond 5000000
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