Question

make the following journal entries for a wholesale plumbing supply distributor comany.

1) Check No. 1599 for $15,000 is issued to the bond sinking fund trustee, Chicago Trust Co., for deposit in the sinking fund.

2) The custodian of the petty cash fund submits the following receipts for reimbursement and reports a cash-on-hand count of $8.

Postage stamps used $38

United Parcel (transportation out) 23

Cash on delivery postage (freight costs) 51

Christmas office decorations 30

Check No. 1601 is issued and cashed to reimburse the fund.

3) Sold an electric truck-lift to Leila Stierman Co. for $2,500 cash. The original cost was $7,900 with salvage value of $900, a life of 10 years, and accumulated depreciation recorded through 31 December 2018 of $4,550. The straight-line method is used. (Note: the company follows the practice of recording a half year’s depreciation in the year of acquisition and a half year in the year of disposal). First, bring the depreciation expense up to date in the general journal. Then journalize the entire entry for the sale in the cash receipts journal.

4) Sold bathroom fixtures and plumbing supplies to Trudy’s Plumbing on account, invoice No. 1212 for $55,770.

5) Because for some time the petty cash fund has been smaller than required for monthly expenditures, the fund is increased by $75 by cashing check No. 1602 and placing the money in the petty cash fund.

6) A half-acre parcel of land adjacent to the building is acquired in exchange for 600 shares of unissued common stock. The land has a fair value of $54,000 and will be used immediately as an outside storage lot and parking lot.

7) An invoice in the amount of $2,650 is received from Wayne McManus, Lawyer, for legal services involved in the acquisition of the adjacent parcel of land; check No. 1596 is issued in payment.

8) Received a bill from DeKalb Transport for $2,300 for freight costs incurred during the last 30 days, terms n/30.

Answer 1