Question

You are the controller at Star Wars, Inc. you must Create Journal Entries for the following transactions.

1- Dec Paid off balance of $45,800 owed to Ewok Inc. No discount applies.

1- Dec Sold 250 units to Storm Troopers Unlimited on account for $800 each.

2 Dec- Received a check in the amount of $23,569 from Jango Fett Inc. in full payment of an invoice dated November 27 in the amount of $24,050.

2- Dec Paid bill of $2,010 to Star Destroyer Repairs in payment of fighter repairs. No impact on A/P ledger.

3- Dec Sold 200 units to Vader Enterprises on account for $805 each.

3- Dec Paid Greedo Inc. $59,420 in full payment of an A/P balance

6- Dec Purchased 500 units from Calrisian's Components on account for $360 each, terms net/45

6- Dec Paid $65,471 to Wamp Rat, Co. in full payment of the invoice from Nov.

6- Dec received a notification that Bosk Co. has declared bankruptcy and collection of the amounts Bosk Co. owes is unlikely. The accounts receivable balance should be written off.

7- Received a check in the amount of $45,000 from R2D2 Computers in partial payment of the balance they owe (no discounts apply) from a Nov. 15 sale of $95,900

7-Dec Received a check in the amount of $49,294 from C3PO Co. in full payment of a sales invoice dated Nov. 27 for $50,300.

7- Dec Sold 185 units to Jango Fett, Inc. on account for the amount of $810 each.

9-Dec Received payment of $72,863 from Jabba's Huts, Inc. in full payment of an invoice dated Nov. 30 for $74,350.

9- Dec Sold 300 units to Wookie Inc. on account for $810 each.

10- Dec Paid $720 for special effects consulting. Use misc. Expenses.

10- Dec Purchased 400 units from Land Speeder, Inc. on account for $365 each, terms n/30

11- Dec Paid bi-weekly wages via payroll checks. The payroll summary is below:

Employee wages (gross) $5,210

FICA taxes withheld 399

Federal income taxes withheld 980

State income taxes withheld 240

    Net pay $3,591

Employer's payroll taxes:

FICA tax $399

(no FUTA or SUTA)

11- Dec Received payment of $22,000 from C3PO Co. in full payment for an invoice dated Nov. 14th. No discount applies.

11- Dec Sold 305 units to Princess Leia Co. for a total of $815 each on account.

12- Dec Sold 165 units to R2D2 Computers on credit for $815 each.

12- Dec Paid invoice dated Nov. 12 in the amount of $37,829 (no discounts apply). The supplier was Count Dooku Consulting.

12- Dec Paid $75,250 to Ewok Inc. for an invoice dated Nov. 28.

13- Dec received payment from Endor Limited for an invoice dated November 15th in the amount of $27,120.

13- Dec Sold 250 units to Vader Enterprises on account for $820 each.

14-Dec Received payment from Jango Fett Inc. from the Dec. 7th sale. Fett Inc. qualifies for the discount.

14- Dec Storm Troopers Unlimited receives a sales allowance for $41,000 for damaged units. This relates to the Dec. 1 sale.

15- Dec Received payment from Wookie Inc. for the Dec. 9 sale, net of the discount

Answer 1

Journal Entries
Date	Accounts	Debit $	Credit $
Dec 01	Accounts Payable	45,800.00
	Cash		45,800.00
Dec 01	Accounts Receivable	200,000.00
	Sales/Revenue		200,000.00
Dec 02	Cash	23,569.00
	Discount expenese	481.00
	Accounts Receivable		24,050.00
Dec 02	Repair Expenses	2,010.00
	Cash		2,010.00
Dec 03	Accounts Receivable	161,000.00
	Sales/Revenue		161,000.00
Dec 03	Accounts Payable	59,420.00
	Cash		59,420.00
Dec 06	Purchases	180,000.00
	Accounts Payable		180,000.00
Dec 06	Accounts Payable	65,471.00
	Cash		65,471.00
Dec 06	Bad Debts [no balance is given for bosk co]	-
	Accounts Receivable		-
Dec 07	Cash	45,000.00
	Accounts Receivable		45,000.00
Dec 07	Cash	49,294.00
	Discount expenese	1,006.00
	Accounts Receivable		50,300.00
Dec 07	Accounts Receivable	149,850.00
	Sales/Revenue		149,850.00
Dec 10	Cash	72,863.00
	Discount expenese	1,487.00
	Accounts Receivable		74,350.00
Dec 10	Accounts Receivable	243,000.00
	Sales/Revenue		243,000.00
Dec 10	Misc. Expenses	720.00
	Cash		720.00
Dec 10	Purchases	146,000.00
	Accounts Payable		146,000.00
Dec 11	Salary Expenses	5,210.00
	FICA taxes		399.00
	Federal income taxes		980.00
	State income taxes		240.00
	Cash		3,591.00
Dec 11	Payroll taxes expenses	399.00
	FICA taxes		399.00
Dec 11	Cash	22,000.00
	Accounts Receivable		22,000.00
Dec 11	Accounts Receivable	248,575.00
	Sales/Revenue		248,575.00
Dec 12	Accounts Receivable	134,475.00
	Sales/Revenue		134,475.00
Dec 12	Accounts Payable	37,829.00
	Cash		37,829.00
Dec 12	Accounts Payable	75,250.00
	Cash		75,250.00
Dec 13	Cash	27,120.00
	Accounts Receivable		27,120.00
Dec 13	Accounts Receivable	205,000.00
	Sales/Revenue		205,000.00
Dec 14	Cash	149,850.00
	Accounts Receivable		149,850.00
	(Discount allowed is missing in question)
Dec 14	Sales/Revenue	41,000.00
	Accounts Receivable		41,000.00
Dec 15	Cash	243,000.00
	Accounts Receivable		243,000.00
	[no mention of discount rate for dec 9 sale]