3:58 PM Tue Jan 4 0000-REVIEW-PROBLEM copy Calibri (Body) Home Insert Draw Formulas Data Review View 11 B I fx =IF(SUM(ACCTSREC_CR)>SUM(ACCTSREC_DR),SUM(ACCTSREC_CR)-SUM( ACCTSREC_DR),"") F RCHANDISING EXERCISE (1-5) the transactions described below. Each correct journal line will receive a 1. DEBIT 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 ABC 123 G H J K M N P Q R 5 T SCORE: CREDIT TRANSACTIONS CASH ACCOUNTS PAYABLE JOHNSON DRAWING JOHNSON CAPITAL 0a. Johnson invested $40,000 cash 0 in the business. 40,000 40,000 0b. Johnson purchased inventory for 0 $24,000 on account. 24,000 24,000 COST OF GOODS SOLD SALES NOTES PAYABLE DEBIT JOURNAL 0c. Johnson borrowed $50,000 from Bank 0 of America on a 3-month 6% note. 0 d. Johnson purchased equipment for 0 $30,000, paying cash. (Life - 5 years.) 0 e. Johnson paid the rent in cash, 0 $3,400. ACCOUNTS RECEIVABLE 50,000 50,000 30,000 30,000 INVENTORY 3,400 DEPRECIATION EXP. 3,400 20,000 RENT EXPENSE 20,000 EQUIPMENT 1,000 INTEREST EXPENSE 1,000 ACCUM DEPR. EQUIP. 50,000 0 f. Johnson sold inventory on account for 0 $20,000. Record the revenue here. 0 g. The cost of goods sold on the sale was 0 $12,000. 0 h. Johnson withdrew cash from the 0 business, $1,000. 0 i. Johnson paid off the note, $50,750 0 including face value of $50,000 and interest of $750. (Put interest first.) 0j. Jahnson recorded one month of 0 depreciation on the equipment, $500. MERCHANDISING INCOME STATEMENT CREDIT + 750 50,750 U 0 > 6% > 3 X 3:58 PM Tue Jan 4 < 0000-REVIEW-PROBLEM copy Home Insert Draw Formulas Data Review View 11 B I U S = ABC 123 G H J K L M ACCUM DEPR. EQUIP. 50,000 fx =IF(SUM(ACCTSREC_CR )>SUM( ACCTSREC_DR),SUM( ACCTSREC_CR )-SUM(ACCTSREC_DR),"") Calibri (Body) A B C D E 30 25 31 26 32 27 33 28 34 29 F 0 i. Johnson paid off the note, $50,750 0 including face value of $50,000 O and interest of $750. (Put interest first.) 0 j. Johnson recorded one month of 0 depreciation on the equipment, $500. MERCHANDISING INCOME STATEMENT COST OF GOODS SOLD 750 35 30 36 37 TRIAL BALANCE DEBIT CREDIT 38 CASH 40,000 SALES 39 ACCOUNTS RECEIVABLE 40 INVENTORY GROSS PROFIT 41 EQUIPMENT 42 ACCUM DEPR. EQUIP. 43 ACCOUNTS PAYABLE 44 NOTES PAYABLE INTEREST EXPENSE DEPRECIATION EXPENSE RENT EXPENSE NET INCOME 45 CAPITAL 46 DRAWING 47 SALES 48 COST OF GOODS SOLD 49 50 INTEREST EXPENSE DEPRECIATION EXP. 51 RENT EXPENSE 52 TOTALS 40,000 0 53 54 55 56 57 58 JOURNAL + 50,750 #VALUE! 0 #VALUE! 6% 0 > N P