Question

Journalize the following entries to the 2014 General Journal using the following format.

• 03/1/2014 - Paid an attorney the amount to the right in order to trademark the brand on Tech Co's new security app. The trademark has an indefinite life. $ 80,000

• 03/1/2014 - Purchased inventory for the cost to the right - terms 3/10 n/30 $ 1,875,000

• 03/1/2014 - Issued new bonds for the amount to the right (i.e., this is the amount of cash Tech Co received). $ 204,000

  • The bonds are payable in 10 years at 8% annual interest (first payment is due on January 1). The par value of the bonds is to the right. $ 200,000

03/2/2014 - Paid for advertising used in the month of November, in the amount to the right (no entry has yet been made for this). $ 5,250

• 03/6/2014 - Purchased a new machine to automate inventory management. The machine has a useful life of 10 years and a $10,000 salvage value. $ 75,000

• 03/7/2014 - Sold merchandise for the price to the right. The customer paid Tech Co $50,000 on account (terms 2/10 n/30), and the remainder in cash. $ 1,800,000

• 03/9/2014 - Tech Co started up a new security consulting practice. They signed a contract with a customer for the value to the right. Tech Co requires that customers pay 50% of the fees upfront and the remainder once the job is complete. The 50% deposit was received today and work will begin in January of next year. $ 30,000

• 03/03/2014 - Received payment from customers that had previously purchased merchandise on account. The amount received is recorded to the right, however a 2% discount was appropriately applied by the customers (i.e., the Accounts Receivable balance that was paid off was greater than the amount received). $ 1,881,948

*. 03/20/2014 - The Board of Directors declared a cash dividend in the amount to the right. The dividend is to be paid on February 12 of next year to all "shareholders of record" as of December 29 of this year. $ 1,500,000

Date	Account Name (and note)	Debit	Credit

Answer 1

JOURNAL ENTRIES
Date	Particulars	Debit ($)	Credit ($)
03/1/2014	Trademark A/c                                   DR	80,000.00
	To, Cash A/c		80,000.00
	(Amount paid to attorney to he right in order to trademark the brand on Tech Co's new security app)
03/1/2014	Purchase A/c                                       DR	1,875,000.00
	To, Account Payable A/c
	(Purchased inventory on accounts payable, with - terms 3/10 n/30)
03/1/2014	Cash A/c                                                DR	204,000.00
	To, 8% Bonds A/c		200,000.00
	To, Premium on Bonds A/c		4,000.00
	(Issued new 8% bonds par value of $200,000 and premuim of issue of bonds $4,000)
03/2/2014	Advertisment A/c                                    DR	5,250.00
	To, Cash A/c		5,250.00
	(Amount paid for advertisment used in the month of month of November, is recorded now)
03/6/2014	Machinery A/c                                         DR	75,000.00
	To, Cash A/c		75,000.00
	(Purchase machinery machine to automate inventory management)
03/7/2014	Account Receivable A/c                            DR	50,000.00
	Cash A/c                                                DR	1,750,000.00
	To, Sales		1,800,000.00
	(Sold merchandise on cash and accounts receivable on terms 2/10 n/30)
03/9/2014	Account Receivable A/c                            DR	30,000.00
	To, Security consulting charge A/c		30,000.00
	(Contracted with customer for security consulting charges will begain in next year January)
03/9/2014	Cash A/c                                                DR	15,000.00
	To, Security Deposit Aa/c		15,000.00
	(Security Deposit received for the security consulting service contract)
03/03/2014	Cash A/c                                                DR	1,881,948.00
	Discount Allowed A/c                              DR	38,407.00
	To, Account Receivable A/c		1,920,355.00
	(Amount received from customent with discount of 2% applied) (note - 1)
03/20/2014	Reserve & Surplus A/c                            DR	1,500,000.00
	To, Dividend Payable A/c		1,500,000.00
	(Dividend declared by the Board of directors paid on February 12 next year)
	Note - 1
	Let, Assumed Account Receivable Paid balance of 100
	Discount on the balance (2%) ie.                    2
	Amount received after appling discount (100-2) =98
	As per the problem 98 is the amount received $ 1881,948
	ie. (98 = $ 1881,948)
	Discount Allowed is = (Amount Received x2 / 98)
	Total Account Balance Paid = (Amount Received x 100 / 98)