Question

Attached is an Income statement for Fleming Company. Your office burned down. You found the following date: Fleming Income Statement: Revenue $20,980 Rent Expense $2,400 Depreciation Expense $ 2,200 Supplies Expense $ 960 Office Expense $1,240 total $ 6,800 Net income $ 14,100 And the following Notes The company paid $15,600 in cash dividends. Accounts receivables decreased by $ 1,480 during the course of the year. Accounts payable increased by $ 380 when they purchased supplies. Total cash increased from $ 460 to $ 3100 Prepare the journal entries that occurred during the year. use T account for each account.

Answer 1

Ref	Account Title	Debit	Crecir
a	Accounts Receivable	20980
	Sales		20980
b	Rent Expense	2400
	Cash		2400
c	Depreciation Expense	2200
	Acc.Deprereciation		2200
d	Supplies Expense	960
	Supplies		960
e	Office Expense	1240
	Cash		1240
f	Cash	22460
	Accounts Receivable		22460
g	Accounts Payable	1080
	Cash		1080
h	Supplies	1460
	Accounts Payable		1460
i	Dividend	15100
	Cash		15100
1. since there is a decrease of $1,480 in acounts receivable balance,
collection will be $1,480 more than the sales.
2. For cash acount the payment to accounts payable
will be the balancing figure.
3. For accounts payable, there is an increase of $380 in the balance.
Therefore purchase of supplies will be the balancing figure.

Cash					Accounts Receivable
	Debit	Credit				Debit	Credit
Beg.Bal.	460	2400	b		Beg.Bal.
f	22460	1240	e		a	20980	22460	f
		1080	g
		15100	i			20980	22460
	22920	19820			End.bal.	-1480
End.bal.	3100
Supplies					Accounts Payable
	Debit	Credit				Debit	Credit
Beg.Bal.		960	d		Beg.Bal.
h	1460				g	1080	1460	h
	1460	960				1080	1460
End.bal.	500						380	End.Bal.
Sales					Rent Expense
	Debit	Credit				Debit	Credit
		20980	a		b	2400
Depreciation Expense					Supplies Expense
	Debit	Credit				Debit	Credit
c	2200				d	960
Office Expense					Accumulated Depreciation
	Debit	Credit				Debit	Credit
e	1240						2200	c
Dividend
	Debit	Credit
i	15100