Accounting questions
Instructions a. Sold merchandise on account, $12,900, with terms 2/10, net 30 on December 26. The cost of the goods sold was $8,385. b. Received payment on December 31 within the discount period. Required: Journalize the above merchandise transactions. The company uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 120 Accounts Receivable 125 Notes Receivable EXPENSES 130 Merchandise Inventory 510 Cost of Merchandise Sold 131 Estimated Returns Inventory 521 Delivery Expense 140 Supplies 522 Advertising Expense125 Notes Receivable EXPENSES 130 Merchandise 510 Cost of Merchandise Sold 131 Estimated Returns Inventory 521 Delivery Expense 140 Supplies 522 Advertising Expense 142 Prepaid Insurance 523 Depreciation Expense 180 Land 526 Salaries Expense 190 Equipment 531 Rent Expense 191 Accumulated Depreciation 533 Insurance Expense 534 Supplies Expense LIABILITIES 536 Credit Card Expense 210 Accounts Payable 560 Miscellaneous Expense 216 Salaries Payable 710 Interest Expense 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Pay EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends312 Dividends General Journal Journalize each transaction. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 2 w 4 5 6Equipment was acquired at the beginning of the year at a cost of $76,020. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,800. Required: a. What was the depreciation expense for the first year? 0. Assuming the equipment was sold at the end of the second year for $57,542, determine the gain or loss on sale of the equipment. c. Journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale Equipment 114 Interest Receivable 115 Notes Receivable EXPENSES 116 Inventory 510 Cost of Goods Sold 117 Supplies 520 Salaries Expense117 Supplies 520 Salaries Expense 119 Prepaid Insurance 521 Advertising Expense 120 Land 522 Supplies Expense 121 Equipment 523 Delivery Expense 122 Accumulated Depreciation 524 Rent Expense 132 Goodwill 525 Insurance Expense 133 Patents 531 Repairs and Maintenance Expense 541 Depreciation Expense LIABILITIES 543 Depletion Expense 210 Accounts Payable 544 Amortization Expense-Patents 211 Salaries Payable 591 Miscellaneous Expense 213 Sales Tax Payable 710 Interest Expense 214 Interest Payable 720 Loss on Sale of Equipment 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 DividendsFirst Questions a. What was the depreciation expense for the first year? Depreciation expense $ b. Assuming the equipment was sold at the end of the second year for $57,542, determine the gain or loss on sale of the equipment. Sale of the equipment $ General Journal c. Journalize the entry to record the sale on December 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2Depreciation expense $ b. Assuming the equipment was sold at the end of the second year for $57,542, determine the gain or loss on sale of the equipment. Sale of the equipment $ General Journal c. Journalize the entry to record the sale on December 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 2 3
