Question

1)The trial balance for unearned compensation for 2018 is 15,000 and 2019 is 5,000. What would the journal entry look like for this problem?

2)The trial balance for land in 2018 is 100,000 and 2019 is 232,000. What would the journal entry look like for this problem if it is paid with cash?

3)The trial balance for Plant Assets in 2018 is 555,000 and 2019 is 783,072. What would the journal entry look like for this problem if the

trial balance reports A/D of 250,000 in 2018 and in 2019 is 275,000? There is also a trial balance in 2018 of 70,000 and in 2019 of 238,072 for Notes Payable.

Answer 1

Solution:

1)

Date	Account Titles and Explanation	Debit	Credit
2019	Unearned Compensation	$          10,000
	Compensation Revenue		$          10,000
	(Being compensation earned)

Note: Unearned Compensation has decreased from $15,000 to $5,000 during this year means we have earned that compensation this year.

2)

Date	Account Titles and Explanation	Debit	Credit
2019	Land	$        132,000
	Cash		$        132,000
	( Being land purchased)

Note: Land valued increased by $132,000 this year and purchased through cash.

3)

Date	Account Titles and Explanation	Debit	Credit
2019	Plant Assets	$        228,072
	Notes Payable		$        228,072
	( Being plant asset purchased on notes)
2019	Depreciation	$          25,000
	Accumulated Depreciation		$          25,000
	( Being land revalued)
2019	Notes Payable	$          60,000
	Cash		$          60,000
	( Being notes payable paid)

Notes:

1)

Plant Assets
Date/Explanation	Amount	Date/Explanation	Amount
Beg Bal	$ 555,000
Notes Payable	$ 228,072
End Bal	$ 783,072
Accumulated Depreciation
Date/Explanation	Amount	Date/Explanation	Amount
		Beg Bal	$ 250,000
		Depreciation	$    25,000
		End Bal	$ 275,000
Notes Payable
Date/Explanation	Amount	Date/Explanation	Amount
Cash	$    60,000	Beg Bal	$    70,000
		Plant Assets	$ 228,072
		End Bal	$ 238,072

2) Differences in plant assets is purchases during this year and differences in accumulated depreciation is depreciation provided during this year.

3) Assuming that purchase of plant assets made by notes.

4) Differences in notes payable is notes paid during this year.