Question

More Info

Oct.Oct. 1 Issued 38 comma 00038,000 shares of? $1 par value common stock for cash of $ 24$24 per share. 1 Issued a $ 320 comma 000$320,000?, ?10-year, 55?% mortgage payable for land with an existing store building. Mortgage payments of $ 4 comma 000$4,000 are due on the first day of each? month, beginning NovemberNovember 1. The assets had the following market? values: Land, $ 200 comma 000$200,000?; ?Building, $ 120 comma 000$120,000. 1 Issued a? one-year, 88?% note payable for $ 7 comma 200$7,200 for store fixtures. The principal and interest are due OctoberOctober ?1, 20192019. 3 Purchased merchandise inventory on account from Elite SupplyElite Supply for $ 124 comma 000$124,000?, terms? n/30. 15 Paid $ 200$200 for utilities. 31 Recorded cash sales for the month of $ 140 comma 000$140,000 plus sales tax of 77?%. The cost of the goods sold was $ 84 comma 000$84,000 and estimated warranty payable was 66?%. 31 Recorded OctoberOctober payroll and paid employees. 31 Accrued employer payroll taxes for OctoberOctober. Nov.Nov. 1 Paid the first mortgage payment. 3 Paid Elite SupplyElite Supply for the merchandise inventory purchased on OctoberOctober 3. 10 Purchased merchandise inventory on account from Elite SupplyElite Supply for $ 200 comma 000$200,000?, terms? n/30. 12 Purchased 400400 shares of treasury stock for $ 12$12 per share. 15 Paid all liabilities associated with the OctoberOctober 31 payroll. 15 Remitted? (paid) sales tax from OctoberOctober sales to the state of North Carolina. 16 Paid $ 2 comma 500$2,500 to satisfy warranty claims. 17 Declared cash dividends of? $1 per outstanding share of common stock. 18 Paid $ 260$260 for utilities. 27 Paid the cash dividends. 30 Recorded cash sales for the month of $ 190 comma 000$190,000 plus sales tax of 77?%. The cost of the goods sold was $ 114 comma 000$114,000 and estimated warranty payable was 66?%. 30 Recorded NovemberNovember payroll and paid employees. 30 Accrued employer payroll taxes for NovemberNovember. Dec.Dec. 1 Paid the second mortgage payment. 10 Paid Elite SupplyElite Supply for the merchandise inventory purchased on NovemberNovember 10. 12 Paid $ 7 comma 300$7,300 to satisfy warranty claims. 15 Sold 200200 shares of treasury stock for $ 16$16 per share. 15 Paid all liabilities associated with the NovemberNovember 30 payroll. 15 Remitted? (paid) sales tax from NovemberNovember sales to the state of North Carolina. 18 Paid $ 210$210 for utilities. 19 Purchased merchandise inventory on account from Elite SupplyElite Supply for $ 85 comma 000$85,000?, terms? n/30. 31 Recorded cash sales for the month of $ 160 comma 000$160,000 plus sales tax of 77?%. The cost of the goods sold was $ 96 comma 000$96,000 and estimated warranty payable was 66?%. 31 Recorded DecemberDecember payroll and paid employees. 31 Accrued employer payroll taxes for DecemberDecember.

Data Table

The Tusquittee Company
Chart of Accounts
Cash	Dividends Payable—Common
Merchandise Inventory	Notes Payable
Land	Mortgages Payable
Building	Common Stock—$1 Par Value
Store Fixtures	Paid-in Capital in Excess of Par—Common
Accumulated Depreciation	Paid-in Capital from Treasury Stock Transactions
Accounts Payable	Retained Earnings
Employee Income Taxes Payable	Treasury Stock—Common
FICA—OASDI Taxes Payable	Cash Dividends
FICA—Medicare Taxes Payable	Sales Revenue
Employee Health Insurance Payable	Cost of Goods Sold
Federal Unemployment Taxes Payable	Salaries Expense
State Unemployment Taxes Payable	Payroll Tax Expense
Income Tax Payable	Utilities Expense
Sales Tax Payable	Depreciation Expense
Estimated Warranty Payable	Warranty Expense
Interest Payable	Income Tax Expense
	Interest Expense

Oct.Oct. ?1: Issued a

$ 320 comma 000$320,000?,

?10-year,

55?%

mortgage payable for land with an existing store building. Mortgage payments of

$ 4 comma 000$4,000

are due on the first day of each? month, beginning

NovemberNovember

1. The assets had the following market? values: Land,

$ 200 comma 000$200,000?;

?Building,

$ 120 comma 000$120,000.

	Save Accounting Table...			+
	Copy to Clipboard...			+

Date			Accounts	Debit	Credit
Oct. 1

Answer 1

Date	Accounts Title	Dr	Cr
1-Oct	Cash (38000*24)	$912,000
	Common Stock—$1 Par Value		$38,000
	Paid-in Capital in Excess of Par—Common		$874,000
1-Oct	Land	$200,000
	Building	$120,000
	Mortgage Payable		$320,000
1-Oct	Store Fixeture	$7,200
	Notes Payable		$7,200
3-Oct	Mercandise Inventory	$124,000
	Accounts Payable		$124,000
15-Oct	Utilities expenses	$200
	Cash		$200
31-Oct	Cash	$149,800
	Sales		$140,000
	Sales Tax payable (140000*7%)		$9,800
	Cost of good sold	$84,000
	Mercandise Inventory		$84,000
	Warranty expenses	$8,400
	Warranty payable (140000*6%)		$8,400
31-Oct	payroll amt not given
31-Oct	payroll amt not given
1-Nov	Interest expenses (320000*5%*1/12)	1333
	Mortgage Payable (4000-1333)	2667
	Cash		4000
3-Nov	Accounts Payable	$124,000
	Cash		$124,000
10-Nov	Mercandise Inventory	$200,000
	Accounts Payable		$200,000
12-Nov	Treasury stock (400*12)	4800
	Cash		4800
15-Nov	As payroll fogures not provided hence cannot make this entry
15-Nov	Sales Tax payable (140000*7%)	$9,800
	Cash		$9,800
16-Nov	Warranty payable	$2,500
	Cash		2500
17-Nov	Cash Dividends (38000-400)*1	$37,600
	Dividends Payable—Common		$37,600
18-Nov	Utilities expenses	$260
	Cash		$260
27-Nov	Dividends Payable—Common	$37,600
	Cash		$37,600
30-Nov	Cash	$190,000
	Sales		$190,000
	Sales Tax payable (190000*7%)		$13,300
	Cost of good sold	$114,000
	Mercandise Inventory		$114,000
	Warranty expenses	$6,840
	Warranty payable (190000*6%)		$6,840
30-Nov	payroll amt not given
	payroll amt not given
1-Dec	Interest expenses (320000-2667*5%*1/12)	1322
	Mortgage Payable	2678
	Cash		4000
10-Dec	Accounts Payable	$200,000
	Cash		$200,000
12-Dec	Warranty payable	$7,300
	Cash		2500
15-Dec	Cash (200*16)	3200
	Paid-in Capital from Treasury Stock Transactions		800
	Treasury stock (200*12)		2400
15-Dec	Sales Tax payable	$13,300
	Cash		$13,300
18-Dec	Utilities expenses	$210
	Cash		$210
19-Dec	Mercandise Inventory	$85,000
	Accounts Payable		$85,000
31-Dec	Cash	$160,000
	Sales		$160,000
	Sales Tax payable (190000*7%)		$11,200
	Cost of good sold	$96,000
	Mercandise Inventory		$96,000
	Warranty expenses	$5,760
	Estimated Warranty payable (160000*6%)		$5,760