Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7. Bowling Corporation had the following transactions occur during February: 1. Bowling purchased $450,000 in inventory on credit. 2. Bowling received $13,000 in cash from

image text in transcribed
image text in transcribed
7. Bowling Corporation had the following transactions occur during February: 1. Bowling purchased $450,000 in inventory on credit. 2. Bowling received $13,000 in cash from customers for subscriptions that will not begin until the following month. 3. Bowling signed a note from Midwest Bank for $67,000. 4. Bowling sold all the inventory purchased in (a) above for $700,000 on account. 5. Bowling paid employees $120,000 for services performed during January 6. Bowling purchased land for $56,000 in cash, 7. Bowling received $650,000 in cash from customers paying off January's accounts receivable. 8. Bowling paid dividends to stockholders in the amount of $4,000, 9. Bowling owes its employees $123,000 for work performed during February but not yet paid. 10. Bowling paid $300,000 on its accounts payable. 11. Bowling paid taxes in cash of $45,000. Required: 1. Prepare journal entries for the above transactions, 2. Complete the T-accounts below. Numbers already under the accounts represent the prior balance in that account. Figure 4.29 Opening T-Account Balances 5. Bowling paid employees S120,000 for services performed during January 6. Bowling purchased land for $56,000 in cash. 7. Bowling received S650,000 in cash from customers paying off January's accounts receivable. 8. Bowling paid dividends to stockholders in the amount of $4,000 9. Bowling owes its employees $123,000 for work performed during February but not yet paid. 10. Bowling paid $300,000 on its accounts payable. 11. Bowling paid taxes in cash of $45,000 Required 1. Prepare journal entries for the above transactions 2. Complete the T-accounts below. Numbers already under the accounts represent the prior balance in that account Figure 4.29 Opening T- Account Balances Cash Acoustic 500.00 0.00 Land 22000 Accountable 100 000 Nate Pays Capital Unser Salt 20 07000 Sayt 220.000 Dividende 3. Prepare a trial balance for February The following events cured ous: 4.5 The Connection of the Journal and the Ledger

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Bookkeeping And Accounting For Beginners

Authors: D.K. Livingston

1st Edition

1686248598, 978-1686248597

More Books

Students also viewed these Accounting questions