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

Calculation of increase in cash surplus during the year
Cash receipts from customers	$22,460.00
Cash payment to suppliers	-$580.00
Cash payment for Rent and office exp.	-$3,640.00
Dividend paid	-$15,600.00
Increase in cash surplus	$2,640.00
Journal entries
Account Titles and Explanation	Debit	Credit
Accounts Receivables	$20,980.00
Sales Revenue		$20,980.00
Cash	$22,460.00
Accounts Receivables		$22,460.00
Supplies Expense	$960.00
Supplies		$960.00
Supplies	$960.00
Accounts Payable		$960.00
Accounts Payable	$580.00
Cash		$580.00
Rent Expense	$2,400.00
Office Expense	$1,240.00
Cash		$3,640.00
Depreciation Expense	$2,200.00
Accumulated Depreciation		$2,200.00
Income Summary	$6,800.00
Supplies Expense		$960.00
Rent Expense		$2,400.00
Office Expense		$1,240.00
Depreciation Expense		$2,200.00
Sales Revenue	$20,980.00
Income Summary		$20,980.00
Income Summary	$14,180.00
Retained Earnings		$14,180.00
Retained Earnings	$15,600.00
Dividend Payable		$15,600.00
Dividend Payable	$15,600.00
Cash		$15,600.00