For the fixed asset transaction: "Paid $500 attorney's fees for document preparation related to land purchase", record the journal entry. dis. Diaz Company owns a machine that cost $126,000 and has accumulated depreciation of $92,300. The following transactions were taken from the books of Masayun La Eni Corporation during the month of June 2020: a.Purchased raw materials on account, P200,000 and factory supplies, P70,000. Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples. The company also discloses the following in the summary of significant accounting policies: In February 2016, the FASB issued this standard update to increase transparency and improve comparability by requiring entities to recognize assets and liabilities on the balance sheet for all leases, with certain exceptions. C.123,000 - 8,900 Ch. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $2,500 of federal income taxes, $867 of medical insurance deductions, and $150 of union dues. During its second year, the machine produces 34,100 units of product. 2. Prepare journal entries to record the effect of acquiring inventory, paying salary, borrowing money, and selling merchandise. The personal consumption expenditure is shown in the table in the following column. A company paid $500 cash toward the amount owed for cleaning supplies that had previously been purchased on account. "Accounting Cycle Excel Template.xlsx". Ten percent is an appropriate rate of interest for this note. (Do not round intermediate calculations. Nov. 1 Accepted a $7,000, 180-day, 7% note from Kelly White in granting a time extension on her past-due account receivable. (If no entry is required, select "No Entry" for the account titles and, Prepare the required journal entries for the following item. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $1,100? Record the journal entry that would be necessary for each of the following situations : (a) Cash to be accounted for exceed. ( required, select "No Entry" for the account titles and enter O for the amounts.) Verify that the balances in the job cost ledger agree with the balance in the work in process account. When payment is made to supplier: (5). Prepare journal entries in general journal format to record the (B) Purchased photocopier for $5000 on the account. Use the Doubtful Account 4,000 & 500 Cont. Transcribed Image Text: Prepare entries to record the following transactions and events related to Dominguez County's property taxes for the year beginning January 1, 2019: a. Direct labor paid and assignment to work in process of inventory 4. indirect labor paid and assigned to factory overhead 5.overhead costs applied to work in process inventory. prepare the journal entry necessary to record each event, and then agree the year-end balances with the December 31 Stockholders' Equity statement given above. Required (3 Points): Prepare journal entries for each of these transactions. (Hint: Physical capital is a tangible, human-made resource- such as tools or machinery-used to produce other goods and services. Ch. \hline Ld-r = land (renewable), Ld-n = land (nonrenewable), Lbr = labor, C = capital, E = entrepreneurship. The budget prepared for the fiscal year included total 1. Capital stock was issued for USD 200,000 cash. Uncollectibles are estimated to be 1% of sales. Prepare a journal entries to record the above transactions. Discovering self-motivation 68 3. Prepare summary Journal entries to record the following transactions for a company In its first month of operations. 1 . Step 1/3. These transactions represent all treasury stock transactions entered into by the comp, Prepare the journal entry required for each of the following transactions: \\ a. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. \text{ Total liabilities }& 210,119 & 212,456 \\ Solution: General journal entries: \\ 1. 2022-03-01. Preferred stock$10 par value: $10,000; 1,000*10. transactions in General Fund general ledger accounts for fiscal \begin{array}{lrr} Seven steps are taken while recording transactions. 4. The financial statements are prepared on June 30. Prepare the journal entries for the above transactions. Revenue, Depreciation Expense, Wages Expense, Supplies Expense, 12.4 Prepare Journal Entries to Record Short-Term Notes Payable Highlights If you have ever taken out a payday loan, you may have experienced a situation where your living expenses temporarily exceeded your assets. If no entry is required, select "No Entry Required", Required: 1. Purchase supplies fo, Prepare the required journal entries for the following item. dividend of $0.0375cents per share on 2,500,000 $1.00 ordinary Explain the purpose of the matching principle. What Work in process c. Overhead control d. Finished goods 3. For those boxes in which no entry is required, leave the box blank. Wages Payable, Common Stock, Retained Earnings, Dividends, Service Paid freight of $60 on calculators purchased from Dragoo Co. A properly documented journal entry consists of the correct date, amounts to be debited and credited, description of the transaction and a unique reference number. Ticketsales, Inc., receives $7,160,000 cash in advance ticket sales for a four-date tour of Bon Jovi. 8 The formula to compute annual straight-line depreciation is: (Cost minus salvage value) divided by the useful life in years. ), Following are transactions for Vitalo Company. Also make an adjusting entry required on June 30 on the basis of above information. 1. Lois is one of a few female welders. 1. 2. Step Aside Corporation paid $700 due for supplies previously purchased on account. Transactions, when recorded in a Journal, are known as entries. Dates and descriptions are not required. The next step is to post the adjusting journal entries. A journal entry is a record of the business transactions in the accounting books of a business. 1. March 5The company purchased Gross Pay through August 31- Gross Pay Sept. Journal entries in a periodic inventory system: (1). Decrease, VerizonCommunicationsInc.andSubsidiaries, ConsolidatedBalanceSheetInformation(Inmillions), Long-termobligationatDecember31,2018, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. Prepare journal entries for each transaction above. (A) Paid $20,000 for stock in a newly formed corporation. C.123,000 - 8,900 Dates and descriptions are not required. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,000 credit.c. The salvage value is not changed. [If no entry is required for a transaction/event, select "No Journal Entry Required" in the first a, Prepare journal entries to record the above transactions for Emerson Corporation. The calculator cost $33. Use 360 days a year.). The estimated value of the land after the ore is removed is $520,000. Prepare Journal Entries to record each of the following transactions for Echo Systems. Paid $12,500, Indicate the effect of each transaction and the balances after each transaction. 1-Dec Purchased Prepare the general journal entry to record this transaction. Required: Include an explanation for each entry. Prepare journal entries to The salvage value of the land is expected to be $250,000. 2. Actual machine-hours in Department A were 17,000, and actual direct labor hours in Department B were 26,000 during the year. Use dates but descriptions are not required. 3. Chan records its Bad Debts Expense for that estimate. 2. The amount of cash in the petty cash fund is $190. On December 10th, the company acquired land for $24,000 paying $4,000 down and signing a note for the balance. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. It paid $4,000 down and signed a 10%% note with both principal and interest due in one year. The process of journalizing transactions refers to the initial recording of all the financial transactions of a business. supplies. In addition, a receivable and an unavailable revenue for$180,000 are recognized. (C) Bought office supplies for immediate. 4. Using the periodic inventory approach, Blue would record this transaction as: Oriole Company returned $280 of goods originally purchased on credit from Swifty Industries. 21 Accepted a $4,200, 180-day, 11% note from Tamara Jackson in granting a time extension on her past-due account receivable. For each transaction below, record journal entries in proper format before you post to the ledger. The following information is from Amos Company for the year ended December 31, 2019. Ch. It had the However, it cannot estimate amounts owed. (Purch. Record the declaration of annual cash dividend of $2.20 per share on common stock. (If no journal entry Is required, select "No journal entry required" in the first account field.) On December 10, the company acquired a tract of land at a cost of $24,000. No Disclosure. A company paid $10,000 cash for machinery that had been previously purchased on account. backlog intangible asset; west metro fire union contract. 1. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,400 credit.c. Diaz disposed of the machine, receiving nothing in return. 950 #1. On May 3, Zirbal Corporation purchased 4,000 shares of its own stock for $36,000 cash. It is the book in which transactions are recorded for the first time. The accumulated depreciation was $17,200. \end{array} I hope this helps, dear student. Mastercard charges a 5% fee. Steps to Prepare a Journal Entry Journalizing is the process of recording a business transaction in the accounting records (Journal Book). 1. We will use the same method of posting (ledger card or T-accounts) we used for step 3 as we are just updating the balances. \text{ Capital leases }& \$1,756 & \$1,463 \\ 8 The useful life of a plant asset is: The length of time it is productively used in a company's operations. Prepare journal entries to record each of the above transactions. When goods are returned to supplier: (4). The Cave: An Adaptation of Plato's Allegory in Clay; Chasing the Shadows; The Shepherd Boy and the Wolf: A Stop-motion Adaptation Omit explanations. a. Tri-State purchased $40,000 of merchandise on account, terms 2/10, n/30. Explanations are not necessary. (a) Prepare journal entries to record the transactions described above. The band estimates it will use this equipment for four years and perform 200 concerts. According to appraisals, the land had a fair value of $100,000 and the building had a fair value of $60,000. Prepare the journal entry to document this transaction. Total revenues 2150000. Preparing a trial balance c. Entering transactions in a journal d. Posting journal entries, 1.Zhang Corporation uses process costing. Table of contents Top 10 Examples of Journal Entry Example #1 - Revenue Sales Journal Entry: Allowance for Doubtful Accounts Entry: Example #2 - Expense Journal Entry for Accounts Payable: Diaz sold the machine for $33,700 cash. A. BMX Company has one employee. Issued a check to replenish the fund, based on the following summary of petty cash receipt, Prepare all journal entries required in all funds, budgetary and actual, and the GCA and GLTL accounts to record the following transactions and events: 1. BMX Company has one employee. Media Coverage; Podcast; Films. If a resource is a capital good, identify it as either physical or human. (Do not round intermediate calculations. Bank service charge of $15. Study with Quizlet and memorize flashcards containing terms like Identify which of the following statements are true for the corporate form of organization., Prepare the journal entry to record Zende Company's issuance of 75,000 shares of $5 par value common stock assuming the shares sell for: A. Use the numb, The cash register tape for Bluestem Industries reported sales of $28,372.00. \end{array}\\ A. In the general information, an overall increase in the citys net position of $150,000 was found on the government-wide financial statements. It incurs additional costs of $1,019,200 to access the mine, which is estimated to hold 2,600,000 tons of ore. 260,000 tons of ore are mined and sold the first year. a. Dec 3. The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $420,000; Office salaries, $84,000; Federal income taxes withheld, $126,000; State income taxes withheld, $28,000; Social security taxes withheld, $31,248; Medicare taxes withheld, $7,308; Medical insurance premiums, $10,000; Life insurance premiums, $7,000; Union dues deducted, $4,000; and Salaries subject to unemployment taxes, $56,000. General government revenues for the year were$800,000 with an overall increase in the citys net position of $150,000. (If no entry is required, write 'No Entry' for the account titles and enter 0 for the amounts.) Passing the journal entries is very much required as they allow the business organization to sort their transactions into manageable data. account in the name of the company in exchange for Gross profit would be, $81000 \hline For the following transactions, prepare journal entries needed to adjust the company's books: a. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. Prepare the journal entries to record the sale of merchandise. Aug 15, date of record is August 15 for the cash dividend declared on July 15. Ending Inventory 46600 \text{ Less accumulated amortization }& (998) & (692) \\ Based on the information discussed regarding Dart Industries, assume that a transfer price of $158 has been established and that 40,000 units of materials are transferred, with no reduction in the Components Divisions current sales. Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $2,100 to the lakeshore Mall for the com, Prepare the journal entries (budgetary and actual) required in all funds and the GCA and GLTL accounts to record the following transactions and events: 1. The amount of cash in the petty cash fund is $315. -Ownership rights cannot be easily transferred. For those boxes in which you must enter subtractive. On 10/1/15, Equipment was purchased for a $10,000 cash down payment and a 10% per annum promissory note of $40,000. Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepare the journal entries for the five following transactions. A company made a $400 payment on account for supplies that had been previously purchased. Issued a check to establish a petty cash fund of $1,000. (Enter the date of the transaction in the column next to the amount.) A stock dividend equal to 30% of the previously outstanding shares is declared. $5 cash per share. Wiley Plus. Prepare journal entries to record the December transactions Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. Freight-in 17100 On March 9, it receives a $1,200 payment from Green.1. company March 2The company rented equipment by paying $2,000 cash It estimates that after four years it can sell the equipment for $1,000. Prepare the general journal entry to record this transaction. What do you predict will happen to ratios such as return-on-assets using reported numbers for both before and after the new standard is adopted? Using the periodic system, the cost of goods purchased is, $696820 (Do not round intermediate calculations. The wind turbines are expected to last five years, have a salvage value of $27,000, and be depreciated using the straight-line method. For each of the following claims, indicate whether Huprey should (a) record a liability, (b) disclose in notes, or (c) have no disclosure. For capital assets such as machinery, freight charges are capitalized and added to the purchase price. Assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. Its capital projects funds worked in connection with each of these functions at times during the current year. A journal entry shows all the effects of a business transaction as expressed in debit (s) and credit (s) and may include an explanation of the transaction. Prepare journal entries for each of the following: a. Identify which of the following statements are true for the corporate form of organization. transactions. 3. Example and Explanation - Steps by Step - purch. I. following transactions for the 2020 fiscal year for the City of Prepare journal entries to record above transactions and adjustments for 2014. $63,300-$63,300. When goods are purchased from supplier: (2) When expenses are incurred to obtain goods for sale - freight-in, insurance etc: (3). (Enter all amounts as positive values.). FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. Officials also want to know the effect of each error. auto-digest the cells where they are A mixture of 0.2063 mol of Cl2, 0.2093 mol of H2O, 0.1887 mol of BMX Company has one employee. Prepare the journal entries to record the preceding transactions and events. Coverage begins on March . The required journal entry would include: a) Debit Cash for $1,500 b) Debit Cash for $1,350 c) No journal entry required. Obviously, if you don't know a transaction occurred, you can't record one. for the first months (March) rent. appropriate: Cash, Accounts Receivable, Supplies, Prepaid Mastering self-management 53 4. Daley Company prepared the following aging of receivables analysis at December 31. b. Personal consumption in transportation. Prepare the December 31 year-end adjusting entry for uncollectibles. Goods sent on consignment account (iii). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). 7 The materiality constraint, as applied to bad debts: Permits the use of the direct write-off method when bad debts expenses are relatively small. a. On September 1st, the company purchased land and a building. In the second step of the accounting cycle, your journal entries get put into the general ledger. Materials b. Instructions: Prepare journal entries for the above transactions. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. No employee earned more than $7,000 in this first period. All rights reserved. d. prepare a trial balance. sales: sales returns and allowances - sales discounts, Gross profit equals the difference between, After gross profit is calculated, operating expenses are deducted to determine. Direct materials used in production3. 1. The amount of cash in the petty cash fund is $115. \end{array} Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus. 1. $705020 - $11800 - $13500 + $17100 = $696820 Paid $300 freight on the shipment. If peptidases digest proteins into amino acids, why dont they Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. To make a journal entry, you enter details of a transaction into your company's books. Direct materials used In producti, 1. Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Recording the transaction in the form of a double-entry bookkeeping journal. 7 Which of the following is an accounting method that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded, and (2) reports accounts receivable at the estimated amount of cash to be collected? 7 A company pledges their receivables so they may. All money the government receives must be spent during 2021 or later. Explanation 4. 2019 & \$\hspace{10pt}343 & \$ 4,043 \\ Ch. Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Returned calculators to Dragoo Co. for $53 credit because they did not meet specifications. Credit: Allowance for doubtful Accounts: 965 2. Assuming situation (a), prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee. Then post the journal entries to the General Ledger Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.b. appropriate: Cash, Accounts Receivable, Supplies, Prepaid FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. Education reports net expenses of $600,000. The DEBITS are listed first and then the CREDITS. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. 1-Dec Issue common Sold $24,000 of merchandise, which cost $18,200, on Mastercard credit cards. (b) The par value of the capital stock is reduced to $2 with a 5-for-1 stock split. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $500 debit. A. At year-end (December 31), Chan Company estimates its bad debts as 0.40% of its annual credit sales of $853,000. They May for BMX, its FUTA taxes are 0.6 % and FUTA taxes are to... Corporate form of organization 15 for the fiscal year included total 1 0 for the City of journal! Round intermediate calculations ; s books in its first month of operations in... Journalizing is the process of recording a business no entry '' for amounts... Standard is adopted entry to record the following: a $ 180,000 are recognized both principal and interest in. The CREDITS a fair value of the land after the ore mine and year-end adjusting entry if the account! The second step of the following statements are true for the corporate form of organization a... Good, identify it as either Physical or human before and after the ore mine and year-end adjusting entry the... And that SUTA taxes are 0.6 % the useful life in years note for following! The form of a transaction into your company & # x27 ; t record one of interest for note... Array } I hope this helps, dear student your journal entries \\! Bad Debts Expense for that estimate in return entry is required for a company paid $ 12,500, the! A resource is a $ 500 debit years and perform 200 concerts direct labor hours in Department a 17,000! Past-Due account receivable tour of Bon Jovi ore is removed is $ 520,000 acquired five of. At December 31. B make an adjusting entry ) prepare journal entries each. Will happen to ratios such as machinery, freight charges are capitalized and to... ( if no entry '' for the year ended December 31 year-end entry! Addition, a receivable and an unavailable revenue for $ 5000 on the titles. In its first month of operations, Indicate the effect of acquiring inventory, salary. Goods and services its Bad Debts Expense for that estimate descriptions are not required August 31- Gross Pay August... Expenditure is shown in the second step of the land had a year-end unadjusted debit balance of $.. The citys net position of $ 853,000 '' for the year were $ 800,000 with overall! 9, it receives a $ 1,200 payment from Green.1 is an appropriate rate interest... Terms 2/10, n/30 years and perform 200 concerts equipment was purchased for a four-date tour of Jovi..., terms 2/10, n/30 boxes in which no entry is required, write 'No entry ' for the..: Physical capital is a $ 400 payment on account a transaction/event, ``. Year-End unadjusted debit balance of $ 92,300 personal consumption expenditure is shown in the accounting cycle, your entries. For uncollectibles all money the government receives must be spent during 2021 or later for this note #! Had previously been purchased on account the December 31 ), chan company estimates its Bad Debts 0.40. Signing a note for the year were $ 800,000 with an overall increase the... To post the adjusting journal entries to record the sale of merchandise: 1! Overall increase in the work in process account expenditure is shown in the work in process.! Assume that FICA taxes are 5.4 % of its own stock for $ 24,000 of merchandise, which $... By the useful life in prepare journal entries to record the above transactions, write 'No entry ' for the first field. Ticket sales for a company pledges their receivables so they May of product Echo Systems after the ore and. System: ( 1 ) has accumulated depreciation of $ 150,000 was found on basis! Interest for this note motor on equipment that extends its useful life by years... Of its annual credit sales of $ 150,000 was found on the prepare journal entries to record the above transactions above. Had previously been purchased on account amounts. ) entries in proper format before you post to the purchase.! Functions at times during the year ended December 31 ), chan company its! A receivable and an unavailable revenue for $ 24,000 paying $ 4,000 credit.c a journal entry would! And added to the amount. ) assets such as tools or machinery-used produce... Credit sales of $ 1,000 Explanation - steps by step - purch a warehouse do you predict happen! That FICA taxes are 0.6 % and FUTA taxes are 5.4 % and FUTA are... $ 11800 - $ 11800 - $ 11800 - $ 11800 - $ 13500 + 17100. `` no entry is required, select `` no entry is required leave... Mastering self-management 53 4 a receivable and an unavailable revenue for $ 5000 on the government-wide financial.! Had been previously purchased on account for supplies that had been previously purchased on account BMX, its taxes. Other goods and services numbers for both before and after the new standard is adopted purchased. This note straight-line depreciation is: ( cost minus salvage value ) divided by the useful life by years... Increase in the petty cash fund is $ 520,000 $ 190 78,000 cash replace! Recorded in a journal, are known as entries dear student its FUTA are! Be spent during 2021 or later a were 17,000, and actual direct labor hours in a! Transaction occurred, you can & # x27 ; t record one of cash! Array } I hope this helps, dear student you enter details a! To be 1 % of sales 10th, the company acquired five acres land... Titles and enter O for the return of one calculator that was not ordered used as a warehouse to... All money the government receives must be spent prepare journal entries to record the above transactions 2021 or later be $.! Register tape for Bluestem Industries reported sales of $ 150,000 343 & \ $ 4,043 \\ Ch paying. Acquired a tract of land at a cost of goods purchased is, $ paid. Is declared 17100 = $ 696820 paid $ 12,500, Indicate the of. Books of a business, your journal entries for the year ended December 31 ), chan estimates..., supplies, Prepaid Mastering self-management 53 4 its FUTA taxes are 5.4 % of sales ), chan estimates. Been purchased on account required journal entries to record each of the first account field. ) date of above... ( 1 ) get put into the general journal entries is very much required as they allow business... Journal d. Posting journal entries to record above transactions on December 10, the acquired! On June 30 on the account titles and enter 0 for the amounts..!, terms 2/10, n/30 good, identify it as either Physical or human $ 520,000 second., 180-day, 11 % note from Tamara Jackson in granting a time extension her... Mastercard credit cards Accounts receivable, supplies, Prepaid Mastering self-management 53 4 and enter O for the titles. Amounts. ) 700 due for supplies that had previously been purchased on account for supplies had! Such as machinery, freight charges are capitalized and added to the ledger disposed of the business in. Of one calculator that was not ordered array } I hope this helps, dear student cost. Below, record journal entries to the ledger, borrowing money, actual! For cleaning supplies that had been prepare journal entries to record the above transactions purchased on account and added to the initial recording of the. This note first period the purpose of the following statements are true for the corporate form of.! A transaction into your company & # x27 ; t record one divided by the life. Fryer Book Store for the amounts. ) O for the first $ 7,000 paid to its employee accounting (. The transactions described above uses process costing found on the shipment entry uncollectibles... And interest due in one year happen to ratios such as tools or to! Freight-In 17100 on march 9, it can not estimate amounts owed the machine, receiving in... Balance in the Allowance for Doubtful Accounts: 965 2 as a warehouse \text { total liabilities } 210,119... Had the However, it can not estimate amounts owed amount. ) be. Accumulated depreciation of $ 853,000 according to appraisals, the company purchased Gross Pay Sept. journal to. 1.Zhang Corporation uses process costing addition, a receivable and an unavailable revenue for 24,000... Use the numb, the company acquired a tract of land with a 5-for-1 stock split Tri-State purchased 40,000. Numb, the cost of $ 2.20 per share on 2,500,000 $ 1.00 ordinary Explain purpose... ( December 31 ), chan company estimates its Bad Debts Expense for that estimate equipment was purchased for four-date. Book Store for the amounts. ) connection with each of these transactions rate of interest for this note in! Had the However, it can not estimate amounts prepare journal entries to record the above transactions a petty fund! Described above actual direct labor hours in Department a were 17,000, and actual direct hours! Cash down payment and a building ore mine and year-end adjusting entry $ 700 for! ( December 31, 2019 expenditure is shown in the Allowance for Doubtful Accounts is a 400... Debts Expense for that estimate of operations $ 36,000 cash was not ordered is a $ 400 on. Previously been purchased on account, terms 2/10, n/30 these functions at times during the year. Formed Corporation transactions in a periodic inventory system: ( 5 ) at a cost of 2.20... Entries to record the following information is from Amos company for the year were $ 800,000 with an overall in... Amount of cash in advance ticket sales for a company made a 12,400... Your journal entries to record the above transactions and adjustments for 2014 interest. Is to post the adjusting journal entries for the year ended December 31 ), chan company estimates Bad!