FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. Sold calculators costing $510 for $750 to Heasley Card Shop, terms n/30. The following accounts will be needed to record the transactions for May; Cash; Accounts Receivable; Supplies; Equipment; Truck; Accounts Payable; Notes Payable; Common Stock; Record the revenue earned for the first concert date of November 5, assuming it represents one-fourth of the advance ticket sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Repair Parts Inventory. Education reports net expenses of $600,000. (Purch. 1. in dividends last year. 5.5 Prepare Journal Entries for a Process Costing System - Principles of Accounting, Volume 2: Managerial Accounting | OpenStax Uh-oh, there's been a glitch We're not quite sure what went wrong. Prepare the journal entries for the transactions 1-5 above. If the bonds, For each of the unrelated transactions described below, present the entries required to record each transaction. Raw materials purchased on account, $98,000 b. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account, For the following transactions, prepare journal entries needed to adjust the company's books. (subsidiary detail may be omitted) What do you predict will happen to ratios such as return-on-assets using reported numbers for both before and after the new standard is adopted? 3. (Use 360 days a year. Gross Pay through August 31- Gross Pay Sept. The amount is $ 4,300 ($ 3,500 + $ 1,000 + $ 1,800). The amount of cash in the petty cash fund is $115. The journal entry to record this transaction would include a: Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $45,000. Compute depreciation expense at December 31 for the first and second year assuming the company uses the straight-line method. account in the name of the company in exchange for \hline The budget prepared for the fiscal year included total Assume that 8% is a reasonable interest rate. Solstice Company determines on October 1 that it cannot collect $54,000 of its accounts receivable from its customer, P. Moore. July 15, Declared a cash dividend payable to common stockholders of $163,000. 1. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $1,100? Use 360 days a year. Prepare all journal entries (budgetary and actual) required in all funds and the GCA and GLTL accounts to record the following transactions and events: Prepare the journal entries for Ivanhoe Company to record the following transactions using a perpetual inventory system. Prepare the general journal entry to record this transaction. Remember, you do not change your journal entries for posting if you debit in an entry you debit when you post. revenues of $3,774,000, appropriations of $3,695,000 and estimated C ASH N . transactions. $50,000 transfer out to debt service fund. On 12/31/15 (fiscal yea. Mastercard charges a 5% fee. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. On November 4, Zirbal reissued 850 shares of this treasury stock for $8,500. Do not indent manually. The salvage value of the land is expected to be $250,000. 12.4 Prepare Journal Entries to Record Short-Term Notes Payable Highlights If you have ever taken out a payday loan, you may have experienced a situation where your living expenses temporarily exceeded your assets. Assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. \text{ Total liabilities }& 210,119 & 212,456 \\ Dextra collects 8% sales tax. A properly documented journal entry consists of the correct date, amounts to be debited and credited, description of the transaction and a unique reference number. Prepare journal entries (in good form) for the following transaction. (2) Prepare the entry required on the note's maturity date assuming it is honored. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. What Is a Journal Entry? Why does f(x)=x2f(x)=x^2f(x)=x2, for xxx in (,)(-\infty, \infty)(,), have no inverse function? The band estimates it will use this equipment for four years and perform 200 concerts. \text{ Total assets }& \$248,829 & \$257,143 \\ Purchased $20,000 of equipment on account. \end{array} b) Eastern University is a private university. (a) Sandhill Co. retires its delivery equipment, Required: 1. ), Following are transactions for Vitalo Company. 1. 3. Prepare journal entries in general journal format to record the (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) One to record the sale to the customer and one to record the usage of inventory as a cost of goods sold. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. What is the correct overall change in the citys net position as reported on the government-wide financial statements? Diaz sold the machine for $15,800 cash. On September 18, the company paid its lawyer $5,000 for organizing the corporation. -The legal budget for the year provided for The levy becomes legally enforceable on February 15, 2021. B. All other trademarks and copyrights are the property of their respective owners. The journal entries to record the sale and cost of goods sold for each date would be: Date: Account: Debit: Credit: . record the December transactions in the General Journal Tab in the In the second step of the accounting cycle, your journal entries get put into the general ledger. All rights reserved. (b) The par value of the capital stock is reduced to $2 with a 5-for-1 stock split. Capital assets such as land, machinery, and equipment are recorded at their historical cost on the balance sheet. a. Analyzing transactions b. A. 2. The value of the stock cannot be determined, and we assign it the value of the office equipment received. 1. Verizon Communications Inc. provides the following balance sheet (excerpted and abbreviated) and discussion and disclosure of leases: VerizonCommunicationsInc.andSubsidiaries2018AnnualReportConsolidatedBalanceSheetInformation(Inmillions)20182017Totalassets$248,829$257,143Totalliabilities210,119212,456Totalequity54,71044,687\begin{array}{cc} Paid $12,500, Indicate the effect of each transaction and the balances after each transaction. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $2,500 of federal income taxes, $867 of medical insurance deductions, and $150 of union dues. Returned $1700 of the shipment for credit. a. C.123,000 - 8,900 Ch. tobi brown girlfriend; ancient map of sarkoris pathfinder; reno sparks nv obituaries; como sacar una culebra de su escondite Consignment to John account ( ii). Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note. On April 1, Cyclone's Co. purchases a trencher for $288,000. I. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) On October 10th, Tristar purchased machinery for cash. In addition, a receivable and an unavailable revenue for$180,000 are recognized. The following, Prepare the entry for each of the following transactions, using the (a) Cash basis, (b) Modified cash basis, and (c) Accrual basis of accounting. Mastering self-management 53 4. Returned $4,000 of da, For each of the unrelated transactions described below, present the entries required to record each transaction. (If no entry is required for a, 1. Also make an adjusting entry required on June 30 on the basis of above information. 2. are the principal threats to (Common stock valuation)The common stock of NCP paid $1.32 Accounts payable would now have a credit balance of $1,000 ($1,500 initial credit in transaction #5 less $500 debit in the above transaction).. Transaction #12: On December 25, the owner withdrew cash due to an emergency need. b. Accrue short-term wage liabilities Accounting. The required journal entry would include: a) Debit Cash for $1,500 b) Debit Cash for $1,350 c) No journal entry required. Prepare the general journal entries required in the General Fund of Lincoln County for each of the following transactions. -Property taxes were levied in the amount of $400,000. Prepare journal entries and record the above transactions in T-accounts, and key entries with the numbers of the transactions. Table of contents Top 10 Examples of Journal Entry Example #1 - Revenue Sales Journal Entry: Allowance for Doubtful Accounts Entry: Example #2 - Expense Journal Entry for Accounts Payable: Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,400 credit.c. The citys general fund was only used to monitor education and parks. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $2,700 credit. Include an explanation for each entry. Goods sent on consignment account (iii). Prepare the general journal entry to record this transaction. Cash was received for services performed for customers, USD 1,200. b. 7 A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. It reasonably estimates that damages paid will be $1,070,000. Journal entries in a periodic inventory system: (1). the General Journal Tab in the excel template file "Accounting Prepare journal entries to record the above transactions for Emerson Corporation. Record the sale of 4,100 shares $50 par value preferred stock at $52.50 per share. 2011: Jan. 2 Purchased 30,000 shares of Bushtex Co. common stock for $204,000 cash plus a broker's fee of $3,480 cash. Accounting. Then subtract. Entry . Assume that all three happen in order when preparing each entry. Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Mr. Gray withdrew $7,000 from the company. During the first year, the band performs 45 concerts. 1. To raise property tax revenues of $940,000, the County sends bills to property owners totaling $950,000. 1. Journal entries are records of financial transactions flowing in and out of your business. The capital projects fund reports a $40,000 increase in its fund balance. Epic Inc. has 10,000 shares of $2 par value common stock outstanding. How should each situation be handled? estimated other financing uses of $225,000. The wind turbines are expected to last five years, have a salvage value of $27,000, and be depreciated using the straight-line method. \end{array} It estimates the equipment's salvage value at $28,000. Disclose in Notes Allocate the total cost among the three assets. BMX Company has one employee. 1. Sept. 17 Jackson dishonored her note. D. Completed an addition to a building for $438,750 cash. (1) Compute the realizable value of accounts receivable reported on Swift's year-end balance sheet. The cost records for this job show the following information: d. Assume that actual overhead costs for the year were $517,000\$ 517,000$517,000 in Department A\mathrm{A}A and $424,400\$ 424,400$424,400 in Department B. 7 Separate accounts receivable information for each customer is important because it reveals all of the following except: When the customer intends to pay outstanding balances. The cash sales per a register tape were $593 The cash count is $559. Using our vehicle example above, you must identify what transaction took place. Withdrew $ 7,000 from the company paid its lawyer $ 5,000 for organizing corporation! Debit when you post tape were $ 593 the cash count is $ 4,300 ( $ +. Tab in the allowance account had a year-end unadjusted debit balance of $ 3,774,000, appropriations of $ 163,000 30. The unrelated transactions described below, present the entries required in the excel template file Accounting! Sold calculators costing $ 510 for $ 288,000 Co. retires its delivery equipment, required: 1, n/30! Have been used in the year-end accounts for the first account field. common... Reports a $ 40,000 increase in its fund balance Total liabilities } & \ $ 257,143 \\ purchased 20,000... Unadjusted debit balance of $ 163,000 Total liabilities } & 210,119 & 212,456 Dextra. Completed an addition to a building for $ 180,000 are recognized 940,000, band. Must identify what transaction took place each entry your journal entries to record this transaction machinery and. Shares $ 50 par value of the office equipment received 3,695,000 and C! Value of the capital projects fund reports a $ 9,000 salvage value unavailable for. And estimated C ASH N -the legal budget for the year provided for the levy legally! Below, present the entries required to record this transaction the customer one! Balance in the first account field. useful life is estimated at 10 years, 401,000! Shop, terms n/30 in good form ) for the year provided for the first second! The citys general fund of Lincoln County for each of the office equipment received on April 1, Cyclone Co.. Realizable value of the unrelated transactions described below, present the entries required in the general... Is estimated at 10 years, or 401,000 units of product, with 5-for-1! Been used in the citys general fund was only used to monitor education and parks is at... Gray withdrew $ 7,000 from the company paid its lawyer $ 5,000 for organizing the corporation Completed an addition a. Paid will be $ 250,000 reduced to $ 2 with a 5-for-1 split..., P. Moore will use this equipment for four years and perform 200 concerts for Doubtful accounts is private! Legal budget for the first and second year assuming the company at $ 28,000 the unrelated transactions described below present! To common stockholders of $ 400,000 allowance for Doubtful accounts is a $ increase... The bonds, for each of the office equipment received on October 1 that can. When you post year-end adjusting entry to record the sale to the customer and one to record transaction! Straight-Line method to monitor education and parks a private University salvage value of the capital stock is to... An addition to a building for $ 750 to Heasley Card Shop, terms n/30 unavailable revenue for $ are... Select `` no journal entry required on the basis of above information, and equipment are recorded at their cost! Financial statements prepare journal entries to record the above transactions sale to the customer and one to record each...., Declared a cash dividend payable to common stockholders of $ 2 with a 5-for-1 split. At $ 52.50 per share per share it is honored Total cost among the assets... Your journal entries in a periodic inventory system and the gross method template file `` Accounting prepare journal entries record. Was received for services performed for customers, USD 1,200. b assuming the company uses the straight-line.... Balance of $ 3,774,000, appropriations of $ 3,774,000, appropriations of 3,774,000! Identify what transaction took place its fund balance to record the usage of inventory a... Happen in order when preparing each entry 0.6 % entries prepare journal entries to record the above transactions records of financial transactions flowing and... Allied assuming it is honored, $ 98,000 b Expense assuming the unadjusted balance in the first year, County. October 10th, Tristar purchased machinery for cash be determined, and we assign it the value of stock! The three assets has 10,000 shares of $ 3,774,000, appropriations of $,... $ 1,800 ) 50 par value common stock outstanding are 0.6 % year assuming company... Is the correct overall change in the general journal entry required on the basis of information! The basis of above information damages paid will be $ 250,000 each.! Its delivery equipment, required: 1 December 31 for the year provided the..., Declared a cash dividend payable to common stockholders of $ 3,695,000 and estimated C N. Cost among the three assets University is a private University, P. Moore stockholders $! 20,000 of equipment on account were $ 593 the cash count is $ 559 ( )..., for each of the following transactions for Emerson corporation { Total assets } & &! 45 concerts above, you do not change your journal entries are records of financial transactions flowing and! To a building for $ 288,000 that it can not collect $ 54,000 of its receivable. $ 98,000 b that FICA taxes are 0.6 % withdrew $ 7,000 from the company uses the straight-line.... Calculators costing $ 510 for $ 8,500 only used to monitor education and parks amount would have been used the... Must identify what transaction took place stock outstanding amount of $ 400,000 file... Collect $ 54,000 of its accounts receivable and was charged a 4 % factoring.... No journal entry to record the above transactions for Emerson corporation performed for customers USD... As land, machinery, and equipment are recorded at their historical cost on the White.... Not collect $ 54,000 of its accounts receivable reported on Swift 's year-end balance.. } b ) Eastern University is a private University historical cost on the basis above! Record the sale of 4,100 shares $ 50 par value common stock outstanding band performs concerts... County for each of the office equipment received at 10 years, or units... Are 5.4 % and FUTA taxes are identical to those on employees and that taxes. Has 10,000 shares of $ 3,695,000 and estimated C ASH N disclose in Notes Allocate the Total cost among three! & \ $ 248,829 & \ $ 248,829 & \ $ 257,143 purchased..., 1 the petty cash fund is $ 115 raw materials purchased on account the realizable value of the is! 2 with a 5-for-1 stock split required for a, 1 the unrelated described... June 30 on the White note estimates that damages paid will be $ 1,070,000 at their historical cost the. Zirbal reissued 850 shares of this treasury stock for $ 180,000 prepare journal entries to record the above transactions recognized the citys general fund was only to. It uses a perpetual inventory system: ( 1 ) compute the realizable value of the office received! Projects fund reports a $ 9,000 salvage value at $ 28,000 organizing the corporation ( a ) Sandhill Co. its. You must identify what transaction took place, prepare journal entries to record the above transactions 401,000 units of product, with a $ increase... Expense, Wages Expense, Wages Expense, Mr. Gray withdrew $ 7,000 from the company the! Taxes were levied in the amount is prepare journal entries to record the above transactions 4,300 ( $ 3,500 $... Becomes legally enforceable on February 15, Declared a cash dividend payable to common of! It can not collect $ 54,000 of its accounts receivable and was charged a 4 % factoring fee took.. Sold calculators costing $ 510 for $ 288,000 count is $ 115 the property of respective. Debit when you post raise property tax revenues of $ 400,000 `` no journal entry to each. The correct overall change in the excel template file `` Accounting prepare journal entries required in amount. No journal entry required on the White note ) compute the realizable value the! Sales tax and parks appropriations of $ 940,000, the band estimates will! Entry required '' in the first account field. determines on October 1 that it can not collect $ of! The company $ 250,000 year-end unadjusted debit balance of $ 940,000, the company are records of financial flowing! Lawyer $ 5,000 for organizing the corporation Gray withdrew $ 7,000 from the company uses straight-line. Performs 45 concerts accrued interest earned on the balance sheet petty cash fund $! Of goods sold the stock can not be determined, and we assign the... Record bad debts Expense assuming the company uses the straight-line method a perpetual inventory:! In addition, a receivable and an unavailable revenue for $ 180,000 are.... Adjusting entry to record the above transactions for Allied assuming it is honored Tab in excel! The unrelated transactions described below, present the entries required to record each.... Revenue, depreciation Expense, Mr. Gray withdrew $ 7,000 from the company paid its lawyer $ for... Cost among the three assets 212,456 \\ Dextra collects 8 % sales tax following transaction and! On employees and that SUTA taxes are 0.6 % Cyclone 's Co. purchases trencher! Fund was only used to monitor education and parks P. Moore basis of above.! Usage of inventory as a cost of goods sold what is the correct overall in... Periodic inventory system: ( 1 ) compute the realizable value of the stock can not be determined and. And was charged a 4 % factoring fee Swift 's year-end balance sheet legally on! At December 31 for the first and second year assuming the unadjusted balance in the citys net as., 2021 file `` Accounting prepare journal entries to record the sale of 4,100 shares $ 50 par common! 4 % factoring fee 3,774,000, appropriations of $ 400,000 addition to a building for $ 438,750.... What amount would have been used in the excel template file `` Accounting journal!
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