All entries are to be entered on the day they happen. All sales and purchases on
ID: 2591014 • Letter: A
Question
All entries are to be entered on the day they happen. All sales and purchases on account are subject to terms of 2/10.n/30. All checks received are deposited daily in the bank and all payments are made by check. Cash deposits are deposited weekly. Individual entries to the Accounts Payable and Accounts Receivable should be posted to the subsidiary ledgers daily.
3 Issued check # 1106 for $7,011.75 to Sam’s Furniture for the purchase of new office equipment for the office.
24 Issued check # 1119 to Island Community Bank in payment of payroll taxes: FICA tax, $352.07 704.14; state unemployment tax, $$69.56; and federal unemployment tax, $10.07. Employees’ Federal Income Tax Payable $1,066.50
24 Cash sales for the week ended December 25 were as follows:
Computers, $4,815.75
Peripherals, $995.25.
Cost of goods - $3,852.60 & $796.20 respectively
31 Cash sales for the week ended December 31 were as follows:
Computers, $1,179.75
Peripherals, $509.25.
Cost of goods - $943.80 & $417.40 respectively.
31 Issued check # 1120 for $221.44 to replenish the petty cash fund. Payments from the fund are summarized as follows:
Store Supplies, $107.24
Office Supplies, $114.20
24 Issued check # 1119 to Island Community Bank in payment of payroll taxes: FICA tax, $352.07 704.14; state unemployment tax, $$69.56; and federal unemployment tax, $10.07. Employees’ Federal Income Tax Payable $1,066.50
24 Cash sales for the week ended December 25 were as follows:
Computers, $4,815.75
Peripherals, $995.25.
Cost of goods - $3,852.60 & $796.20 respectively
31 Cash sales for the week ended December 31 were as follows:
Computers, $1,179.75
Peripherals, $509.25.
Cost of goods - $943.80 & $417.40 respectively.
31 Issued check # 1120 for $221.44 to replenish the petty cash fund. Payments from the fund are summarized as follows:
Store Supplies, $107.24
Office Supplies, $114.20
Explanation / Answer
The following journal entries will be prepared:
Account Titles and Explanation Debit Credit 3 Office Equipment 7011.75 Cash 7011.75 24 FICA Taxes Payable ($352.07+$704.14) 1056.21 State Unemployment Tax Payable 69.56 Federal Unemployment Tax Payable 10.07 Employees' Federal Income Tax Payable 1066.50 Cash 2202.34 24 Cash ($4815.75+995.25) 5811.00 Sales Revenue 5811.00 Cost of Goods Sold ($3852.60+$796.20) 4648.8 Inventory 4648.8 31 Cash ($1179.75+509.25) 1689 Sales Revenue 1689 Cost of Goods Sold ($943.80+$417.40) 1361.20 Inventory 1361.20 31 Store Supplies 107.24 Office Supplies 114.2 Cash 221.44Related Questions
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