Question

Prepare the journal entries to record the December 2020 transactions found down below. Remember to skip a line between each journal entry and use J1, J2, J3, etc, instead of the date.

1. On December 1, Rocky Ram, Inc. received $17,000 from Kanga Roo Inc. for partial payment of account.(First entry journalized and posted for you.)

2. On December 1, Rocky Ram, Inc. received $6,000 in advance for renting office space to Bullwinkle, Inc. for the December 1, 2020 through February 28, 2021.

3. On December 6, Rocky Ram, Inc. issued checks to Acne Corporation for $12,000, Bow & Arrow, Inc. for $8,000, and Boa Construction Inc. for $15,000 in payment on accounts.

4. On December 10, the company purchased supplies in the amount of $4,000 on account from Boa Construction Inc.(FOB Shipping Point, terms n/10, n/30), order shipped in December.

5. On December 10, Rocky Ram, Inc. received a check in the amount of $30,000 from Poodle & Co. in payment of account.

6. On December 13, Rocky Ram, Inc. made a sale in the amount of $77,000 to Poodle & Co (terms 2/10, n/30). The cost of the inventory sold was $36,000.

7. On December 17, Board of Directors declared $8,200 in dividends to be paid in January.

8. On December 20, the company paid employees $31,000 for wages earned during the period from December 1 through December 15, 2020.

9. On December 23, received full payment from Poodle & Co. for sale made December 13(J6), within the discount period.

10. On December 23, Rocky Ram, Inc. made a sale in the amount of $90,000 to Bulldog Inc. (terms 2/10, n/30). The cost of the inventory sold was $28,000.

11. On December 28, Bulldog Inc. returned goods purchased on December 25, in the amount of $14,000. The cost of inventory was $9,000.

12. On December 28, Rocky Ram, Inc. ordered inventory from Bow & Arrow, Inc. in the amount of $50,000 (FOB Destination, terms 2/10, n/30), inventory is expected to arrive sometime in January.

13. On December 31, the company purchased office equipment costing $60,000. They paid $15,000 down on the equipment and signed a promissory note for the remaining balance. The note is due March 31, 2021.

14. On December 31, Rocky Ram, Inc. paid utility bills totaling $2,020 for utilities used during the month of December.

Answer 1

S.No.	Account Titles	Debit $	Credit $
J1	Cash	17,000
	Accounts Receivable -Kanga Roo Inc.		17,000
J2	Cash	6,000
	Unearned Rent Revenue		6,000
J3	Accounts Payable- Acne Corporation	12,000
	Accounts Payable-Bow & Arrow, Inc.	8,000
	Accounts Payable-Boa Construction Inc.	15,000
	Cash		35,000
J4	Supplies	4,000
	Accounts Payable-Boa Construction Inc.		4,000
J5	Cash	30,000
	Accounts Receivable -Poodle & Co.		30,000
J6	Accounts Receivable -Poodle & Co.	77,000
	Sales		77,000
J7	Cost of goods sold	36,000
	Inventory		36,000
J8	Cash Dividend	8,200
	Cash Dividend Payable		8,200
J9	Wages Expense	31,000
	Cash		31,000
J10	Cash	75,460
	Sales Discount ( 77,000 x 2% )	1,540
	Accounts Receivable -Poodle & Co.		77,000
J11	Accounts Receivable -Bulldog Inc.	90,000
	Sales		90,000
J12	Cost of goods sold	28,000
	Inventory		36,000
J13	Sales Return & Allowance	14,000
	Accounts Receivable -Bulldog Inc.		14,000
J14	Inventory	9,000
	Cost of goods sold		9,000
J15	No Entry on December 28
J16	Office Equipment	60,000
	Cash		15,000
	Note Payable		45,000
J17	Utilities Expense	2,020
	Cash		2,020