Question

What are the journal entries for the following?

1. Company purchased inventory on credit (with accounts payable), cost of $330,000.
2. Company made credit sales (with accounts receivable), amount of $200,000.
3. Company collected accounts receivable, amount of $100,000.
4. Company hired a new assistant store manager. He will start in June 2020.
5. Company made cash sales, amount of $100,000.
6. Company paid off accounts payable in the amount of $300,000.
7. Company counted inventory at year-end, and found that the inventory sold cost $200,000.
8. Company paid $21,000 in salaries in cash.
9. Company paid $5,000 for interest on the note payable (Noncurrent).
10. Company recognized $7,000 in depreciation on the Property, Plant and Equipment.
11. Company pays income taxes at a rate of 21%. It uses an income tax payable account now, and will pay cash in the future.

Answer 1

Account Titles	Debit	Credit
Inventory / Purchases	$      330,000
Accounts Payable		$      330,000
Accounts Receivable	$      200,000
Sales Revenue		$      200,000
Cash	$      100,000
Accounts Receivable		$      100,000
No entry
Cash	$      100,000
Sales Revenue		$      100,000
Accounts Payable	$      300,000
Cash		$      300,000
Cost of Goods Sold	$      200,000
Inventory / Purchases		$      200,000
Salaries Expense	$         21,000
Cash		$         21,000
Interest Expense	$           5,000
Cash		$           5,000
Depreciation Expense	$           7,000
Accumulated Depreciation		$           7,000
Income Tax Expense	$         14,070
Income Tax Payable		$         14,070