Question

At 31 December 20X5, the post-closing trial balance reflects the following:

Acct. No.	Account		Debit			Credit
101	Cash	$	82,000
102	Accounts receivable		64,000
103	Allowance for doubtful accounts				$	4,000
104	Inventory (perpetual inventory system)		140,000
105	Prepaid insurance (20 months remaining at 1 January)		3,700
200	Equipment (20-year estimated life, no residual value)		206,000
201	Accumulated amortization, equipment					92,700
300	Accounts payable					30,500
301	Wages payable					—
302	Income taxes payable (for 20X5)					13,000
400	Common shares, no-par, 100,000 shares					260,000
401	Retained earnings					95,500
500	Sales revenue					—
600	Cost of goods sold		—
601	Operating expenses		—
602	Income tax expense		—
700	Income summary		—
		$	495,700		$	495,700

The following transactions occurred during 20X6 in the order given (use the letter at the left in place of date):

1. Sales revenue of $91,000, of which $40,000 was on credit; cost of goods sold, provided by perpetual inventory record, $59,500. (Note: When the perpetual system is used, make two entries to record a sale: first, debit cash or accounts receivable and credit sales revenue; second, debit cost of goods sold and credit inventory.)
2. Collected $52,000 on accounts receivable.
3. Paid income taxes payable (20X5), $13,000.
4. Purchased merchandise, $130,000, of which $26,000 was on credit.
5. Paid accounts payable, $20,000.
6. Sales revenue of $240,000 (in cash); cost of goods sold, $156,400.
7. Paid operating expenses, $63,000.
8. Issued 1,000 common shares for $4,000 cash.
9. Purchased merchandise, $400,000, of which $108,000 was on credit.
10. Sales revenue of $392,000, of which $120,000 was on credit; cost of goods sold, $255,100.
11. Collected cash on accounts receivable, $104,000.
12. Paid accounts payable, $112,000.
13. Paid various operating expenses in cash, $72,000.

Required:

1. Journalize each of the transactions listed above for 20X6. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

	Date	Account title	Debit	Credit
1		Cash	51,000
		Accounts receivable	40,000
		Sales revenue		91,000
		Cost of goods sold	59,500
		Inventory		59,500
b		Cash	52,000
		Accounts receivable		52,000
c		Income tax payable	13,000
		Cash		13,000
d		Merchandise	130,000
		Accounts payable		26,000
		Cash		104,000
e		Accounts payable	20,000
		Cash		20,000
f		Cash	240,000
		Sales revenue		240,000
		Cost of goods sold	156,400
		Inventory		156,400
g		Operating expenses	63,000
		Cash		63,000
h		Cash	4,000
		Common stock		4,000
i		Merchandise	400,000
		Accounts payable		180,000
		Cash		220,000
j		Cash	272,000
		Accounts receivable	120,000
		Sales revenue		392,000
		Cost of goods sold	255,100
		Inventory		255,100
k		Cash	104,000
		Accounts receivable		104,000
l		Accounts payable	112,000
		Cash		112,000
m		Operating expense	72,000
		Cash		72,000