Question

Prepare journal entries to record each of the January through March transactions

1. The company paid cash to Lyn Addie for five days’ work at the rate of $235 per day. Four of the five days relate to wages payable that were accrued in the prior year.

· 2. Santana Rey invested an additional $23,100 cash in the company in exchange for more common stock.

· 3. The company purchased $6,700 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.

· 4. The company received $2,848 cash from Gomez Co. as full payment on its account.

· 5. The company completed a five-day project for Alex’s Engineering Co. and billed it $5,320, which is the total price of $6,720 less the advance payment of $1,400. The company debited Unearned Computer Services Revenue for $1,400.

· 6. The company sold merchandise with a retail value of $4,100 and a cost of $3,520 to Liu Corp., invoice dated January 13.

· 7. Record the cost of January 13 sale.

· 8. The company paid $600 cash for freight charges on the merchandise purchased on January 7.

· 9. The company received $4,110 cash from Delta Co. for computer services provided.

· 10. The company paid Kansas Corp. for the invoice dated January 7, net of the discount.

· 11. The company gave a price reduction (allowance) of $700 to Liu Corp., and credited Liu's accounts receivable for that amount. 12. The company received the balance due from Liu Corp., net of the discount and the allowance.
· 13. The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $486.

· 14. The company purchased $9,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26.

· 15. The company sold merchandise with a $4,6000 cost for $5,830 on credit to KC, Inc., invoice dated January 26.

· 16. Record the cost of January 26 sale.

· 17. The company paid cash to Lyn Addie for 10 days’ work at $215 per day.

· 18. The company paid $2,625 cash to Hillside Mall for another three months’ rent in advance.

· 19. The company paid Kansas Corp. for the balance due, net of the cash discount, less the $486 credit from merchandise returned on January 24.
· 20. The company paid $410 cash to the local newspaper for an advertising insert in today’s paper on Feb 5.

· 21. The company received the balance due from Alex’s Engineering Co. for fees billed on January 11.

· 22. The company paid $4,650 cash for dividends.

· 23. The company sold merchandise with a $2,520 cost for $3,300 on credit to Delta Co., invoice dated February 23.

· 24. Record the cost of February 23 sale.

· 25. The company paid cash to Lyn Addie for eight days’ work at $235 per day.

· 26. The company reimbursed Santana Rey $128 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense."
· 27. The company purchased $2,750 of computer supplies from Harris Office Products on credit, invoice dated March 8.

· 28. The company received the balance due from Delta Co. for merchandise sold on February 23.

· 29. The company paid $920 cash for minor repairs to the company’s computer.

· 30. The company received $5,330 cash from Dream, Inc., for computing services provided.

· 31. The company paid the full amount due of $4020 to Harris Office Products, consisting of amounts created on December 15 (of $1,270) and March 8.

· 32. The company billed Easy Leasing for $9,177 of computing services provided.

· 33. The company sold merchandise with a $2,042 cost for $2,940 on credit to Wildcat Services, invoice dated March 25.

· 34. Record the cost of March 25 sale.

· 35. The company sold merchandise with a $1,148 cost for $2,360 on credit to IFM Company, invoice dated March 30.

· 36. Record the cost of March 30 sale.

· 37. The company reimbursed Santana Rey $128 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense."

Answer 1

1.Wages a/c Dr. 940

Wages payable A/c Cr. 940

( being wages accrued for last year)

2. Stock A/c Dr. 23100

Capital A/c Cr. 23100

( being cash invested in stock)

3. Purchase A/c. Dr. 6700

Kansas corp A/c. Cr. 6700

( being cash purchases)

4.Cash A/c. Dr. 2848

Gomez co. Cr. 2848

(Being cash received from Gomez co)

5. Accounts receivable A/c. Dr. 5320

Unearned computer services revenue Dr. 1400

Alex engineering co. A/c.cr. 6720

(Being amount received from alexis engineering co)

6. Liu corp A/c .Dr. 4100

Sales A/c .cr. 4100

(Being credit sales)

7. No entry

8. Freight A/c. Dr. 600

Cash A/c. Cr. 600

( being cash paid for freight)

9. Cash A/c. Dr. 4110

Services provided. Cr. 4110

( being amount received for services provided)

10.Kansas group A/c. Dr. 6700

Cash A/c. Cr. 6030

Discount received. A/c. Cr. 670

( being amount paid after discount to kansas group)

11. accounts receivable A/c. Dr. 3400

Discount allowed A/c . Dr. 700

Liu corp A/c. cr . 4100

( being account recievable entered in books of accounts)

12. Cash A/c. Dr. 3400

Accounts receivable A/c. Cr. 3400

(Being amount received)

13. Cash A/c. Dr. 486

Purchase return A/c. Cr. 486

(Being cash received for purchase return)

14. Purchase A/c. Dr. 9900

Kansas corp A/c..... Cr. 9900

( being credit purchase from kansas corp)

15.Kc A/c. dr. 4600

Sales. A/c . cr. 4600

(Being credit sales)

16.No entry

17.wages A/c. Dr.. 2150

CashA/c. Cr. 2150

(Being cash paid for wages)

18. Advance rent A/c . Dr. 2625

Cash A/C. Cr. 2625

( being advance rent paid)

19.Kansas corp. A/c. Dr. 9900

Cash a/c. Cr. 8424

Discount a/c. Cr. 990

Mercandise returned A/c.cr. 486

(Being amount paid to kansas group after discount)

20. Advertisement A/c Dr. 410

Cash a/c. Cr. 410

(Being amount paid for advertisement)

21.cash A/c. Dr. 5320

Accounts receivable a/c. Cr. 5320

(Being amount received from alex engineering co)

22. Dividend payable A/c. Dr. 4650

Cash A/c.. Cr. 4650

(Being Dividend paid)

23.Delta co. A/c Dr. 3300

Sales. A/c. Cr. 3300

(Being credit sales)

24.No entry

25. Wages A/c. Dr. 1880

Cash A/c. Cr. 1880

(Being wages paid to Lyn addie)

26.Mileage expense A/c . Dr. 128

Cash A/c. Cr. 128

(Being amount paid for expenses)

27. Computer supplies A/c. Dr. 2750

Harries A/c. cr. 2750

(Being asset purchased on credit)

28. Cash A/c. Dr... 3300

Delta co. A/c. Cr. 3300

(Being amount received on credit sales)

29. Repairs A/c. Dr. 920

Cash A/c.. Cr. 920

(Being amount paid to repairs)

30.Cash A/c. Dr. 5330

Services A/c.. Cr. 5330

(Being cash received from services)

31.Harris A/c .Dr. 4020

..cash. A/c.... Cr. 4020

( being amount paid for credit purchase)

32. Accounts receivables a/c Dr. 9177

services A/c. Cr. 9177

(Being amount billed for services provided)

33.Wild cat A/c . Dr. 2940

Sales. A/c. Cr. 2940

(Being credit sales)

34.No entry

35.Ifm services A/c. Dr. 2360

Sales A/c. cr. . 2360

(Being credit sales)

36.No entry

37. Mileage expenses A/c. Dr. 128

Cash A/c. Cr. 128

(Being amount paid for mileage expenses)