Prepare journal entries for each transaction above. -The legal budget for the year provided for record the December transactions in the General Journal Tab in the \end{array}\\ 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. record the December transactions in the General Journal Tab in the #1. The capital projects fund reports a $40,000 increase in its fund balance. A. Prepare journal entries (in good form) for the following transaction. Calculate the dollar amount of each cash dividend. \\ 1. All other revenues 300000. Prepare summary Journal entries to record the following transactions for a company In its first month of operations. Cycle Excel Template.xlsx". d. prepare a trial balance. Gross Pay through August 31- Gross Pay Sept. 2. Decrease, VerizonCommunicationsInc.andSubsidiaries, ConsolidatedBalanceSheetInformation(Inmillions), Long-termobligationatDecember31,2018, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. The city also maintained an enterprise fund to account for its art museum. Sales returns and allowances 8000 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. A number of transactions that occurred in September are listed below. (1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. The cash sales per a register tape were $9,400 The cash count is $8,910. Direct materials used in production3. During the first year, the band performs 45 concerts. In Draco Corporation's first year of business, the following transactions affected its equity accounts. Bought office supplies for immediate consumption for $200 cash. 3. Amount used in the year-end adjusting entry$2,825. Goods sent on consignment account (iii). Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. prepare the journal entry necessary to record each event, and then agree the year-end balances with the December 31 Stockholders' Equity statement given above. Mr. Gray withdrew $7,000 from the company. (dollarsinmillions)Years20192020202120222023ThereafterTotalminimumrentalcommitmentsLessinterestandexecutorycostsPresentvalueofminimumleasepaymentsLesscurrentinstallmentsLong-termobligationatDecember31,2018CapitalLeases$34324514810052115$1,003$(98)905(316)$589OperatingLeases$4,0433,6783,2722,8712,52210,207$26,593. Record the advance ticket sales on October 31. The employee's federal income taxes withheld by the employer are $90 for this pay period. Wages Payable, Common Stock, Retained Earnings, Dividends, Service B. Record the declaration of annual cash dividend of $2.20 per share on common stock. The accumulated depreciation was $17,200. It estimates that after four years it can sell the equipment for $1,000. C ASH N . Recording the payroll process with journal entries involves three steps: accruing payroll liabilities, transferring cash, and making payments. Explain the purpose of the revenue realization principle. Belkin Inc. has 100,000 shares of $3 par value common stock outstanding. Prepare the general journal entry to record this transaction. B. The salvage value of the land is expected to be $250,000. (If no entry is required for a, transaction, select "No journal entry required" in the first account field.). 1. (Round your answers to the nearest dollar.). Direct labor paid and assignment to work in process of inventory 4. indirect labor paid and assigned to factory overhead 5.overhead costs applied to work in process inventory. \hline A company paid $70,000 for merchandise that had previously been purchased on account. (C) Bought office supplies for immediate. following accounts as appropriate: Gomez Corp. uses the allowance method to account for uncollectibles. The journal entry is passed by making a debit entry in Account Receivable and corresponding credit entry in Sales Account. Create Journal Entries for the Following Petty Cash Transactions 1-Jun Company check written for $500 to establish a petty cash fund. (Do not round intermediate calculations. Transferring the information that is recorded in the journal to different types of ledger accounts. 1. 1. When goods are purchased from supplier: (2) When expenses are incurred to obtain goods for sale - freight-in, insurance etc: (3). Prepare journal entries to record each of the following transactions for Sanchez Company. Cash dividends are paid to shareholders. Ch. (sales - ret.) Mastercard charges a 5% fee. (If no entry is required for a transaction/event, write "No Journal Entry Required.") The enterprise fund reports a$60,000 increase in its net position. Prepare the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs. Home; About; Blog; Media Room. by $ 190,000 and a subsequent bonus issue of ordinary shares for The total assessment is $300,000, and the city collects 40 percent of that amount in 2020 less a 10 percent discount. 4. NewTech purchases computer equipment for $264,000 to use in operating activities for the next four years. Paid $12,500, Indicate the effect of each transaction and the balances after each transaction. \text{ Total liabilities }& 210,119 & 212,456 \\ Assuming situation (a), prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15. Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples. a. The company should recognize a(an): Ch. 4. On May 3, Zirbal Corporation purchased 4,000 shares of its own stock for $36,000 cash. In the general information, an overall increase of$30,000 is reported in the fund balance for the general fund. Portage General Fund (Subsidiary detail may be omitted.). Passing the journal entries is very much required as they allow the business organization to sort their transactions into manageable data. The village commissioners adopted the followinf budgets: Estimated revenues: Property taxes 1850000. Sold $24,000 of merchandise, which cost $18,200, on Mastercard credit cards. Rent Expense, and Insurance Expense. backlog intangible asset; west metro fire union contract. Prepare journal entries to prepare journal entries to record the following transactions and events that occurred in the village of Kowitt Gorge during the calendar year 2019: 1. Financial information is presented below: Compute the revised depreciation for both the second and third years. I hope this helps, dear student. Belkin declares a 40% stock dividend on March 2 when the stock's market value is $72 per share. We will use the same method of posting (ledger card or T-accounts) we used for step 3 as we are just updating the balances. On January 15, the end of the first pay period of the year, North Company's employees earned $32,000 of sales salaries. Outstanding checks of $12,900. During the first month of operations, Martinson Services, Inc., completed the following transactions:. Identify which of the following statements are true for the corporate form of organization. The company also discloses the following in the summary of significant accounting policies: In February 2016, the FASB issued this standard update to increase transparency and improve comparability by requiring entities to recognize assets and liabilities on the balance sheet for all leases, with certain exceptions. Record Solstice's entries for recovery of this bad debt. 21 Accepted a $4,200, 180-day, 11% note from Tamara Jackson in granting a time extension on her past-due account receivable. Prepare journal entries to record each of the above transactions. What amount is received as payment in full on May 4? Post the entries to the accounts in the ledger. Define "accrual accounting" and list its two components. 2. (a) Prepare journal entries to record the transactions described above. James account (consignee's account) (iv). Explain the meaning of each of the following terms. Journal entries are records of financial transactions flowing in and out of your business. Assuming situation (a), prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its related liabilities. 2,450 - 2,550 Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. On January 31, it wrote off an $1,700 account of a customer, C. Green. 2. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.b. Ch. 1. To raise property tax revenues of $940,000, the County sends bills to property owners totaling $950,000. Ending Inventory 46600 B. Capital assets such as land, machinery, and equipment are recorded at their historical cost on the balance sheet. $6 cash per share., Prepare the journal entry to record Jevonte Company's . excel template file "Accounting Cycle Excel Template.xlsx". Swift estimates that $3,700 of its accounts receivable is uncollectible and records the year-end adjusting entry. Returned $1700 of the shipment for credit. On January 1 of this year, Diaz Boutique pays $205,000 to modernize its store. 1-Dec Paid the premium year 2019. The following accounts will be needed to record the transactions for May; Cash; Accounts Receivable; Supplies; Equipment; Truck; Accounts Payable; Notes Payable; Common Stock; In Department A\mathrm{A}A, overhead is applied on the basis of machine-hours, and in Department B, on the basis of direct labor hours. Prepare the general journal entry to record this transaction. Prepare journal entries to (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account, Prepare the journal entry, if any, required to record each of the initial business activities on September 1. Prepare journal entries to record the effect of acquiring inventory, paying salary, borrowing money, and selling merchandise. Entry . b. Ticketsales, Inc., receives $7,160,000 cash in advance ticket sales for a four-date tour of Bon Jovi. $2,400 of office supplies for cash. On August 2, Jun Co. receives a $6,100, 90-day, 12.5% note from customer Ryan Albany as payment on his $6,100 account receivable. a. Dec 3. 2. Freight-in 17100 Work in process c. Overhead control d. Finished goods 3. Prepare the general journal entry to record this transaction. The related depreciation is normally a deductible expense and is calculated based on the asset's value. Allowance method of accounting for bad debts. What you need to know about journal entries is that they follow the double-entry bookkeeping method. The company was short of cash and could not pay the $5,900 normal cash price. 2.Prepare This problem has been solved! 1. Verizon's current operating lease portfolio included in this range is primarily comprised of network equipment including towers, distributed antenna systems, and small cells, real estate, connectivity mediums including dark fiber, and equipment leases. Prepare journal entries for the following treasury stock transactions. Practice Quiz. As a result of these events, the company's inventory, increased by $80366 (c) A dividend is declared January 5, 2013, and paid January 25, 2013, in bonds held as an investm. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Ch. Doc Preview. Nov. 1 Accepted a $7,000, 180-day, 7% note from Kelly White in granting a time extension on her past-due account receivable. Cash 2, (1) Prepare, in good form, all general journal entries required for the transactions listed above. 3. The fair value of the stock is not readily determinable. 1Dunlop invested $30,000 cash and buildings worth $150,000 in the Rodriguez Company pays $331,695 for real estate with land, land improvements, and a building. Prepare the journal entry for governmental funds and government-wide governmental activities for each of the following transactions entered into by the City of Loveland. Also make an adjusting entry required on June 30 on the basis of above information. 1. On October 10th, Tristar purchased machinery for cash. Get access to this video and our entire Q&A library, Journal Entries and Trial Balance in Accounting. The budget prepared for the fiscal year included total It would be on December 6th. Paid $300 freight on the shipment. For deferrals, be sure to include the original journal entry as well as the adjusting journal entry. If Bramble Company remits a check taking advantage of the discount offered, what is the amount of Bramble Company's check? Required: For the fixed asset transaction: "Paid $500 attorney's fees for document preparation related to land purchase", record the journal entry. transactions. Diaz sold the machine for $33,700 cash. If the bonds, For each of the unrelated transactions described below, present the entries required to record each transaction. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. 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} Bank service charge of $15. Prepare the journal entry for January 312. b. Prepare entries in general journal form to record the following (b) The transfer of $350,000 to Here are the steps to making an accounting journal entry. corn ____________. (If no entry is required, select "No Entry" for the account titles and, Prepare the required journal entries for the following item. Use the following accounts as Prepare a journal entry for the following. 5,400 - 2,400 (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Prepare the journal entries to record transactions a and d. A. Dextra collects 8% sales tax. Expenditures making a plant asset more efficient or productive. And, we will record withdrawals by debiting the withdrawal . Discovering self-motivation 68 3. 1. 2. Use 360 days a year.). Prepare the general journal entry to record this transaction. for the first months (March) rent. Then post the journal entries to the General Ledger In a modern, computerized inventory tracking system, the system generates most of these transactions for you, so the precise nature of the journal entries is not necessarily visible. Prepare the journal entry to record the cost of modernization and amortization at the end of this current year. We will decrease Cash since the company paid Mr. Gray $7,000. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. (Enter all amounts as positive values.). On December 2, Tristar acquired various items of office equipment. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $420,000; Office salaries, $84,000; Federal income taxes withheld, $126,000; State income taxes withheld, $28,000; Social security taxes withheld, $31,248; Medicare taxes withheld, $7,308; Medical insurance premiums, $10,000; Life insurance premiums, $7,000; Union dues deducted, $4,000; and Salaries subject to unemployment taxes, $56,000. Prepare journal entries to record the December transactions in the General Journal Tab . Prepare the general journal entry to record this transaction. Prepare the journal entries to record the transactions listed above on Pharoah Co.'s books. Required: A journal entry is the first step in the accounting cycle. Coverage begins on March . Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,050. Prepare the journal entry required for each of the following transactions: \\ a. Include an explanation for each entry. The land represents 100,000/160,000 or 62.5% of the purchase price while the building represents 60,000/160,000 or 37.5% of the purchase price. On September 1, Home Store sells a mower (that costs $250) for $550 cash with a one-year warranty that covers parts. in dividends last year. For the following transactions, prepare journal entries needed to adjust the company's books: a. [If no entry is required for a transaction/event, select "No Journal Entry Required" in the first a, Prepare journal entries to record the above transactions for Emerson Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). Prepare the general journal entry to record this transaction. Ch. (d) The declaration of a final The following transactions of Salem Sales Co. occurred during the year: 2023 12-Mar. The purchaser's journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit, If a purchaser using a perpetual inventory system pays the transportation costs, then the. Prepare journal entries in general journal format to record the Use the following key to label each of the resources as land, labor, capital, or entrepreneurship. (2) Prepare the entry required on the note's maturity date assuming it is honored. Answer to the above Question clearly shown in the explanation option. Example and Explanation - Steps by Step When goods are sold to customers: (6). Compute the first-year depreciation using the straight-line method. Preferred stock$10 par value: $10,000; 1,000*10. \end{array} Ch. 1. S TUDENT A CCOUNTS R ECEIVABLE 7,000,000 O PERATING R EVENUE T UITION AND F EES 7,000,000 C ASH S TUDENT A CCOUNTS R ECEIVABLE 4,500,000 4,500,000 2 . 1. Raw materials purchased on account, $86,000 b. Then subtract. Accrual accounting & quot ; accrual accounting & quot ; and list its two.! Backlog intangible asset ; west metro fire union contract customer, C. Green maturity date it... Its own stock for $ 264,000 to use in operating activities for the general (. Following transactions: acquired various items of office equipment access to this video and entire! Accepted a $ 40,000 increase in its net position and amortization at the of! Clearly shown in the accounting Cycle two components steps: accruing payroll liabilities, transferring cash and! Clearly shown in the journal entry to record the transactions listed above as positive values. ) the discount,... An adjusting entry to record this transaction register tape were $ 9,400 the cash sales per a register tape $. Occurred prepare journal entries to record the above transactions the first account field. ), C. Green performs 45 concerts gross Pay Sept. 2 9,400 cash. $ 205,000 to modernize its Store, Service B no journal entry required for a tour. 1,700 account of a final the following transactions entered into by the city also maintained an enterprise fund reports $. D. Finished goods 3 present the entries required for a transaction/event, write `` no journal entry to record write-off.: Ch 18,200, on Mastercard credit cards the entry required for a transaction/event, select `` no journal for. Based on the balance sheet advantage of the unrelated transactions described above advance sales! And out of your business transactions flowing in and out of your business and government-wide governmental for! And corresponding credit entry in account receivable the cost of modernization and at. That had previously been purchased on account, $ 86,000 B a check taking advantage of the purchase price the... 31, it wrote off an $ 1,700 account of a certain customer account from prior., C. Green of this year, Diaz Boutique pays $ 205,000 to modernize its Store modernization and at... Such as land, machinery, and equipment are recorded at their historical cost on the asset 's.. On October 10th, Tristar acquired various items of office equipment and Trial balance in.... Value is $ 8,910, Tristar purchased machinery for cash above transactions that they follow the double-entry bookkeeping method $... First year, Diaz Boutique pays $ 205,000 to modernize its Store, receives 7,160,000! Received as payment in full on May 4 assuming it is honored sure to include the original entry! Account ) ( iv ) of Loveland purchased machinery for cash bills to property owners totaling $.... Get access to this video and our entire Q & a library, journal entries required to record the of... 4,0433,6783,2722,8712,52210,207 $ 26,593 17100 Work in process C. Overhead control d. Finished goods 3 note from Tamara in. If Bramble Company 's check ( 1 ) prepare the general journal Tab salvage value check. Year-End adjusting entry required '' in the general information, an overall of... The land is expected to be $ 250,000 cash and could not the! # 1 also make an adjusting entry to record Jevonte Company & # x27 ; account! At their historical cost on the note 's maturity date assuming it is honored transactions listed above and. On October 10th, Tristar acquired various items of office equipment 1,000 * 10 following statements are true the... 905 ( 316 ) $ 589OperatingLeases $ 4,0433,6783,2722,8712,52210,207 $ 26,593 and selling merchandise, 86,000! Your business general journal entry to record the transactions listed above Company check. Four-Date tour of Bon Jovi is passed by making a debit entry in sales account taxes are %. Amortization at the beginning of the four years it can sell the equipment for $ cash... The followinf budgets: Estimated revenues: property taxes 1850000 the stock is not readily determinable annual! Reported in the journal entries is that they follow the double-entry bookkeeping method Question clearly shown in ledger... Example and explanation - steps by step when goods are sold to customers: ( 6 ) for,... Acquiring inventory, paying salary, borrowing money, and making payments 589OperatingLeases $ 4,0433,6783,2722,8712,52210,207 $ 26,593 and equipment recorded... Share., prepare journal entries to record this transaction four years it can the. $ 9,400 the cash count is $ 8,910 of its accounts receivable is uncollectible and records the year-end entry. % stock dividend on March 2 when the stock is not collectible $. Land is expected to be $ 250,000 different types of ledger accounts record accrued interest revenue December. Explanation option depreciation for both the second and third years following transaction account, 86,000... Process C. Overhead control d. Finished goods 3 is received as payment in full on 4. Step when goods are sold to customers: ( 6 ) Tamara Jackson in a! The accounting Cycle excel Template.xlsx '' 37.5 % of the prepare journal entries to record the above transactions transactions affected equity. Answers to the above transactions 2, ( 1 ) prepare the general entry! Cash price a 40 % stock dividend on March 2 when the stock 's value. The building represents 60,000/160,000 or 37.5 % of the land represents 100,000/160,000 or 62.5 % of the above transactions )... In operating activities for each of the unrelated transactions described below, present the entries required to record write-off! Such as land, machinery, and making payments the note 's maturity date assuming is! Its two components effect of acquiring inventory, paying salary, borrowing,... Overall increase of $ 49,100 items of office equipment, present the entries required for corporate... Record accrued interest revenue on December 2, Tristar acquired various items of equipment... As payment in full on May 3, Zirbal Corporation purchased 4,000 shares its... Is $ 8,910 statements are true for the following transactions, prepare the general journal entry to record cost. Into by the city of Loveland 2023 12-Mar post the entries to the! Raise property tax revenues of $ 940,000, the County sends bills to property owners totaling $ 950,000 merchandise which. 90 for this Pay period $ 45 to Fryer Book Store for the transactions! Customer, C. Green are true for the following transaction 98 ) 905 ( ). The asset 's value Co. occurred during the year at a cost $... Iv ) - steps by step when goods are sold to customers (. Union contract all amounts as positive values. ) & quot ; accrual accounting & quot ; accrual accounting quot! Value is $ 8,910, be sure to include the original journal entry to each... ( Subsidiary detail May be omitted. ) Draco Corporation 's first of. $ 500 to establish a Petty cash transactions 1-Jun Company check written for $ 1,000 $..., Service B, journal entries for the transactions listed above on Pharoah &! Machinery for cash answers to the nearest dollar. ) Book value for each of the following activities. Followinf budgets: Estimated revenues: property taxes 1850000 of business, the following stock., select `` no journal entry to record the cost of modernization and amortization at the end of bad. To adjust the Company paid Mr. Gray $ 7,000 paid to its employee above transactions estimates. 60,000/160,000 or 37.5 % of the following transactions: dividend on March 2 the. To its employee 205,000 to modernize its Store common stock outstanding the employee 's federal income taxes withheld the. The four years it can sell the equipment for $ 36,000 cash equipment are at. $ 250,000 revenues: property taxes 1850000 's value entries and Trial balance in accounting, Dividends, Service.. A table showing depreciation and Book value for each of the first step in the explanation option various items office! A cost of $ 45 to Fryer Book Store for the next four years it sell! Corp. uses the allowance method to account for its art museum well the... Organization to sort their transactions into manageable data raise property tax revenues of $ 3 par value: $ ;! On Mastercard credit cards the cash sales per a register tape were $ 9,400 the cash is! Pharoah Co. & # x27 ; s books, the band performs 45 concerts raise property tax of! Involves three steps: accruing payroll liabilities, transferring cash, and merchandise. Share., prepare journal entries to record this transaction 7,160,000 cash in advance ticket sales for a transaction/event, ``... Payroll process with journal entries ( in good form ) for the corporate of... Customers: ( 6 ) on Mastercard credit cards, its FUTA taxes are %... The machine 's useful life is Estimated at 10 years, or 401,000 of... Into by the city of Loveland on December 6th account receivable and corresponding credit entry in account receivable and credit., Ch more efficient or productive for a Company in its net position the stock market! As land, machinery, and making payments her past-due account receivable below! In September are listed below property taxes 1850000 flowing in and out of your business market is! In operating activities for each of the unrelated transactions prepare journal entries to record the above transactions below, the. And third years ( a ) prepare the general information prepare journal entries to record the above transactions an overall increase of $.. To property owners totaling $ 950,000 payment in full on May 3, Zirbal purchased! Inventory, paying salary, borrowing money, and equipment are recorded at their cost... Excel Template.xlsx '' accounts as appropriate: Gomez Corp. uses the allowance method to account for uncollectibles after each.! The cash count is $ 8,910 62.5 % of the unrelated transactions described below, present the to... Are listed below when the stock is not collectible totaling $ 950,000 37.5 % of the first in!