Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

31, 2016 Selected Transactions Read through the information below for selected transactions during the month of December, 2016 and prepare the required jounat entry to

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
31, 2016 Selected Transactions Read through the information below for selected transactions during the month of December, 2016 and prepare the required jounat entry to record the transaction. Post each of the entries below to the general ledger T-accounts attached On December 5, ACME purchased $58,875 of merchandise on account from Indiana Corp terms 3/10, 1/30 Date 112/5 Account description Inventory Credit accounts payable Debit 56,875 59.875 2) Sold Merchandise for $5,000 to Lee Corp on account on December 7. Cost of the merchandise was $3,340 and the terms of the sale were 2/15, 1/30. Date Account description 1217 Debit Credit 5000 accounts receivable sales Cests of gras sold 5000 3340 37.40 3) On December 14 ACME wrote a check to Indiana Corp for the purchase made on December 5 to take advantage of the purchase discount (round discount to nearest dollar) Date Account description Debit Credit 12114 accounts 5665 Cash 157,109 1766 paypide Inventory 4) On December 15, Lee Corp requested credit for $500 of defective merchandise included in their December 7 purchase. ACME granted them an allowance and they disposed of the defective merchandise at ACME's request. 5) Date Account description Debit Credit 12/15 | Sales returns & allowance 500 receivalde Soo Lee Corp paid their balance due taking the sales discount offered on December 19. Date Account description Debit Credit 12119 cash 41470 gales discourth 90 allouilts reclivale 4500 6) December 20 ACME issued 50 shares of $10 par stock for $45 per share for cash. Prepare the adjustment to record the issuance of stock below. Date Credit Account description Debit [12/20 Cash 2400 common stock ladditional paid in capital 7) ACME purchased supplies for $1,300 cash on December 21. 560 1900 12121 Supplies cash Date Account description Debit Credit 1300 1300 8) On December 21 ACME received $2,500 in cash as an advance payment for merchandise to be delivered next month. Date Account description 1221 catch 2500 unearned revenue 2500 9) On December 23 ACME paid in cash the December utility bill of $1,680 Date Account description Debit Credit 1680 [12/23 utilities expense cash 1680 10) On December 23, 2016 the board of directors declared a dividend of $8 per share on its 170 issued and outstanding shares to shareholders of record on January 16, 2017 and payable on February 16, 2017. (Note that the company uses a dividends general ledger account to record its dividend payments during the year rather than recording the dividends directly to retained earnings. Be sure to use that account!) Date Credit Account description Debit 12/23 Sahries expense 4250 Isannies papble 4250 11) ACME has already accrued the employee salaries for the pay period ending December 23. On December 28, ACME pays the employees the previously accrued amount. Account description Debit Credit 112/28 salaries parable 4250 cash' 4250 Date ACME Distribution, Inc. December 31, 2016 General Ledger T-accounts Cash 103.212 Beginning balance Accounts receivable 42.400 Allowance for bad debts 130 Ending balance Prepaid insurance 18,000 Supplies 145 Inventory 25,558 Beginning balance Ending balance Prepaid rent 2.600 Once equipment 35 000 Accum. Depr.- Office equip 11.500 Beginning balance Ending balance Warehouse equipment 80,000 Accum. Depr.- Whse equip 24.000 Beginning balance Ending balance Accounts payable 14.200 Beginning balance Bond payable 75.000 Salarios payable 4250 Ending balance Uneamed revenue Interest payable Dividends payable Beginning balance Ending balance Retained earnings 162.410 Additional paid in capital Common stock 900 1.200 Beginning balance Ending balance Dividends 24,000 Beginning balance Ending balance Sales returns & allowance 280 Sales discounts 1.885 Sales 729.300 Beginning balance Ending balance Beginning balance Cost of goods sold 532,310 Depr. exp.- Office equip. 3,500 Depr. Exp. Whs equip. 8,000 Ending balance Bad debt expense Beginning balance Salaries expense 61.400 Insurance expense 14,500 800 Ending balance Interest expense Rent expense 28,600 Advertising expense 22,700 Beginning balance Ending balance Utilities expense Beginning balance 18,000 Ending balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing The Art and Science of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser

12th Canadian edition

978-0133098235

Students also viewed these Accounting questions

Question

What influences peoples choice of values?

Answered: 1 week ago