Question

ARCH began the year with the following balances Accounts Payable ................$ 27,000 Accounts Receivable, net .............26,000 Cash .....................10,000 Inventory ...................25,000 Notes Payable .................270,000 Permanently Restricted Net Assets ........100,000 Pledges Receivable ...............350,000 Property, Plant, and Equipment, net .........350,000 Temporarily Restricted Net Assets .........30,000 Unrestricted Net Assets .............302,000 Wages Payable ................32,000 Transactions 1. January 12. Received a $300,000 payment from a pledge made last year. 2. February 4. Placed an order for new cubible partitions with five-year useful lives, for $15,000. ARCH uses straight-line depreciatio. Payment was not yet made, and the partitions have not yet been delivered. 3. March 1. Paid out a $50,000 grant to the Governmental Archeological Research Committee for History (GARCH). This was a new grant made in the current fiscal year. 4. May 29. Paid a $5,000 deposit for the partitions ordered on February 4. 5. June 12. Collected $80,000 in new donations. 6. September 1. ARCH bought $60,000 of books it has sponsored in the past to sell in its online bookstore. They paid half now, and still owe the other half, to be paid at the end of the year. ARCH has budgeted to sell the books for $100,000 total. 7. October 15. The partitions ordered on February 4 arrived, and ARCH paid for the balance owed. 8. November 10. ARCH borrowed $75,000 from its bank on a note payable. 9. December 5. ARCH repaid $25,000 on the note payable, and also $3,000 in interest expenses. 10. December 28. ARCH paid its employees $75,000 of wages in cash for the year, $70,000 of which was the current year and $5,000 of which was for the outstanding balance owed. Employees earned $90,000 in wages for the year. 11. December 31. Book sales from the Internet bookstore totaled $110,000, and the cost of the books sold was $58,000. ARCH has not collected $12,000 of the sales. The balance owed for the inventory was paid. 12. ARCH expects that of the $12,000 not collected to date, it will collect $10,000. 13. December 31. Depreciation on ARCH's building for the year is $40,000. Record this information in a transactions worksheet.

Answer 1

Date	Accounts	Debit $	Credit $
Jan -12	Cash A/c	3,00,000
	Pledges Receivable		3,00,000
	Received payment from a pledge made last year
Feb -04	No Entry for placing an Order
Mar -01	Grants expense	50,000
	Cash A/c		50,000
	Paid out a $50,000 grant to the GARCH
May -29	Capital Advance (for asset)	5,000
	Cash A/c		5,000
	Paid a $5,000 deposit for the partitions ordered
Jun -12	Cash A/c	80,000
	Donations received A/c		80,000
	Collected $80,000 in new donations
Sept -01	Book Supplies A/c	60,000
	Accounts Payable A/c		30,000
	Cash A/c		30,000
	Being Books bought to sell in its online bookstore
Oct -15	Partitions Asset A/c	15,000
	Cash A/c		10,000
	Capital Advance (for asset)		5,000
	The partitions ordered on February 4 arrived, and ARCH paid for the balance owed
Nov -10	Bank A/c	75,000
	Notes Payable A/c		75,000
	ARCH borrowed $75,000 from its bank on a note payable
Dec -05	Notes Payable A/c	25,000
	Interest Expense A/c	3,000
	Cash A/c		28,000
	ARCH repaid $25,000 on the note payable, and also $3,000 in interest expenses
Dec -28	Wages Expense A/c	90,000
	Wages Payable A/c (Current year)		90,000
	Employees earned $90,000 in wages for the year.
Dec -28	Wages Payable A/c (Current year)	70,000
	Wages Payable A/c (last year)	5,000
	Cash		75,000
	Salaries and Wages for the current year was repaid
Dec -31	Accounts Payable A/c	30,000
	Cash A/c		30,000
	Balance owed for the inventory was paid.
Dec -31	Cash A/c	98,000
	Accounts Receivable A/c	12000
	Sales Revenue A/c		1,10,000
	Book sales from the Internet bookstore
Dec -31	Allowance for Doubtful debts	2,000
	Accounts Receivable A/c		2,000
	ARCH expects that of the $12,000 not collected to date
Dec -31	Depreciation Expense A/c	40,000
	Building or Accumulated Depreciation - Building A/c		40,000
	Depreciation on ARCH's building for the year is $40,000.
Dec -31	Depreciation Expense A/c (15,000*1/5 years*167/365 days)	1,373
	Partitions Asset A/c		1,373
	Depreciation on Partitions Asset was recorded