Question

Journal entries

November 9 The business purchased building worth $75000; paying $15,000 cash and the bank financed the balance with a note for 10 years at 9% annual interest rate. Interest is payable annually on november 1st of each year. The principal will be paid when the note matures.

November 11The Company purchased Copier, Computer, and Printer from Office Equipment, Inc. for $35,000. Terms are 2/10, n/30.

November 14 Purchased merchandise inventory from Madison Supply Company $15,000 on account. Credit term: 2/10, n/30.

November 14 Contracted with Truly Blessed, Inc. on Windsor Drive. The deal terms are: the business performs Accounting and Bookkeeping services, at a weekly rate of $3,500 per week. The customer gave the business a deposit on the contract of $6,500. Services start 15th of November 2020.

November 14 Hired Betsy Green at the rate of $700 per 5-day week (Monday - Friday), to be paid bi-weekly. Green will start work on November 16th.

November 15 Received accounting and bookkeeping contract from LittleTot Day Care, work starts November 16th. Terms are n/30.

November 17 The business borrows $20,000 from the Berks County bank; interest rate is 5% due 18 months from now.

November 18 The business joined Professional Associations of Bookkeepers. Membership dues paid $3,200 for 1 year.

November 20 Paid the amount due to Madison Supply Company

November 21 Ordered $1,000 of Office Supplies from Supplies We Are, Inc. The supplies will be delivered second week of December.

November 22 Performed accounting service to a client on account $20,000.

November 24 Received utility bill from Gas Company for the month and paid immediately $650.

November 25 Returned $450 of office supplies purchased on March 3 to We-Know-You Supplies, Inc. Vendor issued a credit memo to reduce the amount due on account.

November 26 Paid Betsy Green’s salary, for the first 2 weeks of work.

November 27 Received April Electric Bill from Reading Energy company, $650.

November 27Received payments in full from Fit-for-U Beauty Shop.

Novemer 27 Paid We-Know-You Supplies, Inc. account balance.

November 31 Sold 575 units of inventory item to a customer at $60 each for cash (cost $20 each). Assume the company uses a perpetual inventory system. This transaction requires two journal entries.

Answer 1

	Journal entries	Debit	credit
Nov.9	Building a/c	75000
	To cash		15000
	To 9% note payable		60000
Nov.11	Computer, printer, copier	35000
	To accounts payable		35000
14	Inventory a/c	15000
	To accounts payable		15000
14	Contract made
	No journal entry
	Cash	6500
	To deposit from customer		6500
15	no entry required
17	Cash/bank	20000
	To borrowing		20000
18	Membership fee	3200
	Cash		3200
20	Accounts payable	15000
	To cash		15000
	(Paid for merchandise purchased from Madison on credit)
21	order- No entry
22	Cash a/c	20000
	To accounting services		20000
24	Utility bill	650
	To cash		650
25	Accounts payable	450
	To purchase return		450
26	Salary	1400
	To cash		1400
	(Salary of two weeks, rate 700 per week)
27	Electricity bill exp.	650
	To electricity bill payable		650
31	Cash a/c	34500
	Cost of goods sold	11500
	To revenue/sales a/c		34500
	To inventory		11500