Question

In: Accounting

prepare journal entries for the following transactions Transactions for Eagle View for the Month of December...

prepare journal entries for the following transactions

Transactions for Eagle View for the Month of December 2018

Purchases

Eagle View receives the utility bill for the month. The total amount due is $500, payable net 20. Eagle View also purchases 50 units of inventory at $500 each and 50 more toolkits at $4 each.

Payroll

Eagle View pays its employees for the fifth two weeks of business (November 26 through December 9). The gross pay is $2,200, the employee taxes are $550 and the employer taxes are $550. Part of this has already been accrued in November. Eagle View pays its employees for the sixth two weeks of business (December 10 through December 23). The gross pay is $2,200, the employee taxes are $550 and the employer taxes are $550.

Cash Payments

Eagle View paid the outstanding November liabilities: payroll taxes, sales taxes, utilities, WeMakeIt and the Office Shop bills. Office Shop has offered a discount of 2% and Eagle View paid within the discount period. Eagle View also purchased $400 in advertising in December and paid the December rent.

Sales

You record December cash sales of 10 units for $1,000 each. You also record credit sales to both Happy Time and to Wonderful Widgets of 16 units for $1,000 each. For all sales, sales tax is 5%.

Cash Receipts Wonderful Widgets pays its balance in full after the discount period. Giggles pays for last month's sale within the discount period.

Solutions

Expert Solution

Ans- Transactions for Eagle View for the Month of December 2018:-

Transaction Account Titles and Explanation Debit ($) Credit ($)
a Utilities Expense 500
Accounts Payable 500
(To record the utilities expenses)
b Merchandising Inventory (50*500) 25,000
Supplies (50*4) 200
Cash 25,200
(To record purchase of inventory and toolkits)
c Salaries Expenses   2,200
Employee Taxes Payable 550
Cash 1,650
(To record payment of salaries and withholding of taxes)
d Payroll Tax Expense 550
Payroll Taxes Payable 550
(To record employer payroll taxes)
e Cash (10*1,000) 10,000
Sales 9,500
Sales Tax Payable 500
(To record cash sales and sales tax)
f Accounts Receivable 16,800
Sales (16*1,000) 16,000
Sales Tax Payable ($16,000*5%) 800
(To record sale on account and sales tax)
g Advertising Expense 400
Cash 400
(To record payment for advertising)
h Rent Expense
Cash
(To record payment of rent)

The amount of rent is not given.


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