Journal Entry
Instructions |
Within this
worksheet you will find a list of transactions for the month of
June. Use these to write the corresponding journal entries. You are
to write all the journal entries in general journal format (double
entry accounting). LIST DEBITS BEFORE CREDITS. SKIP 1 LINE AFTER
EACH ENTRY.MAKE SURE TO INPUT THE CORRECT TRANSACTIONS ON EACH
GENERAL JOURNAL PAGE - THERE WILL BE EXTRA ROWS ON EACH
PAGE!!! |
Before starting
work, review the entire project: all instructions, business
transactions descriptions, workbook sections , check figures, due
dates, and submission requirements. |
Credit Terms &
Inventory Accounting |
When Panther
Marine purchases merchandise inventory from a supplier or vendor on
account, they receive credit terms of 2/20, net 30. |
When Panther
Marine sells merchandise to a customer on account, they offer that
customer credit terms of 2/30, net 45. Do NOT round intermediate
calculations. If required round final number to nearest cent. |
Panther Marine
uses a perpetual inventory accounting system and a last-in,
first-out (LIFO) inventory costing method. Within this workbook
there is a worksheet labeled "Inventory Control". You will need to
update this worksheet EVERYTIME a purchase or sale is made. As part
of that process you will be calculating the value of CGS each time
you generate a sale. Use the "Inventory Control" worksheet to
calcluate your Cost of Goods Sold values. |
Panther Marine
uses the net method of accounting for purchases and sales. The net
method assumes that discounts are taken when a purchase or sale is
made on account. Discounts are applied right
away. |
JUNE JOURNAL TRANSACTIONS |
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June 1 |
Purchased 5,000 Fish Finder units on Credit from Raydar Marine
for $42.00 per unit. |
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June 1 |
Issued 10,000 shares of common stock for
$20 per share (Refer to the Chart of Accounts for description of
common stock). |
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June 1 |
Signed a one-year 15%, $216,000 note
payable with Boat US Bank. |
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June 1 |
Sold 4,000 Propellers on account to Chris
Craft for $85 per units, Invoice #5555. |
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June 2 |
Rented part of the warehouse to a new
tenant and received $6,000 for three months rent (June, July,
August). |
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June 2 |
Sold 5,200 Fish Finder units on account to
Sea Ray for $82 per unit, Invoice #5556. |
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June 2 |
Purchased office supplies from Staples on
credit for $4,800. |
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June 2 |
Sold 900 Downriggers for $66 per unit and
800 propeller units for $86 per unit on account to Boston Whaler,
Invoice #5560. |
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June 3 |
The Board of Directors declared a cash
dividend of $2 per share for shareholders of record on June 5th,
payable on June 12th. Refer to the chart of accounts for # of
outstanding shares. Please include ALL outstanding shares as of
June 5th. |
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June 4 |
Received payment from Chris Craft for May
20th sale. |
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June 4 |
A bankruptcy judge disallowed Panther
Marine's claim for $7,000 due from Four Winns. Management decided
to write off this accounts receivable. |
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June 5 |
Paid $3,300 to DU Utility Co. for
utilities bill that was recorded in May as an Account Payable,
Check #5278. |
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June 6 |
Purchased 8,000 shares of Grand Valley
Marine, Inc. stock for $15 per share. The investment is intended to
be held for less then 1 year. |
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June 7 |
Received and paid expense reports for
travel and entertainment totaling $5,925, Check #5279. |
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June 8 |
Paid for office supplies purchased on June
2nd, Check #5280. |
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June 11 |
Paid in full for the June 1 purchase from
Raydar Marine, Check #5281. |
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June 11 |
Received a bill from the law firm Bob
Loblaw for $4,100, payable upon receipt, for bond consulting fees,
paid the bill immediately-no payable recognized. Issued Check
#5282. |
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June 12 |
Paid the dividend that was declared on
June 3, Check #5283. |
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June 13 |
Took advantage of a trade discount of 20%
on the purchase of 3,250 Propellers on account from Acme. Before
applying trade discount the propellers are selling for $52 per
unit. (Trade discount taken on total BEFORE purchase
discount). |
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June 13 |
Purchased 1,850 Fish Finder units on
credit from Raydar Marine for $50 per unit. |
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June 15 |
Sold 3,500 Propellers on credit to Donzi
for $99.00 per unit, Invoice 5557. |
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June 15 |
Check # 5284 was issued for payroll:
$20,500 for salaried and $6,600 for wages. |
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June 16 |
Purchased 2,500 Downriggers on credit from
Scotty for $32 per unit. |
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June 17 |
Issued a credit to Sea Ray for the return
of 350 defective fish finder units from the June 2nd sale. These
units has a cost basis of $41.16 per unit. |
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June 17 |
Returned the 350 defective units received
from Sea Ray to Raydar Marine. Raydar Marine issued a cash
refund. |
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June 18 |
Received payment in full from Chris Craft
for the June 1st sale. |
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June 20 |
While inspecting the June 13th purchase,
it was discovered that the Fish Finder units were programmed for
South America instead of North America. Panther Marine returned the
entire order to Raydar Marine. |
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June 20 |
Panther Marine purchased 2,800 shares of
it's own stock for $10 per share. |
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June 22 |
Sold 2,650 Downriggers on credit to Sea
Ray for $56 per unit, Invoice #5559. |
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June 23 |
Paid $195,000 of the $362,500 owed to Acme
from May 25, Check #5285. |
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June 23 |
Received payment from Donzi for $175,000
of the $300,000 owed from May 5. |
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June 24 |
Purchased a $3,000 international phone
card for one of the sales representative's upcoming European
business trip, Check #5286. |
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June 25 |
Paid in full for the purchase from Acme on
June 13, Check #5287 |
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June 26 |
Purchased 1,250 Downriggers from Scotty for $33 per unit paying
in cash, Check #5288 |
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June 27 |
Sold 1,500 Downriggers on credit to Donzi
for $61 per unit, Invoice 5558. |
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June 27 |
Hired and paid a consultant $85,000 to
devise a marketing plan. Panther Marine's management felt this was
necessary to develop brand awareness. Check #5289. |
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June 28 |
Panther Marine is behind in its mortgage
payments to LMCU. Paid a total of $20,000 ($4,000 principal and
$16,000 interest), Check #5290. |
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June 28 |
Sold 1,000 treasury shares from June 20th transaction for $15
per share |
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June 29 |
Received payment in full from Donzi for
the June 27th transaction. |
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June 29 |
Sold 3,000 shares of Grand Valley Marine,
Inc stock for $18 per share. |
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June 29 |
Check #5292 was issued for payroll:
$20,500 for salaries and $7,750 for wages. |
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June 30 |
Paid the first month's principal payment
of $18,000 on the note payable. In addition, paid one month's
interest, Check #5293 |
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June 30 |
Issued bonds payable at 97 discount. Face
value of the bonds is $400,000. Contract rate on bond is 8% and
bond matures in 5 years. |