B D E F G H 1 L M P RA SCORE: 0 REVIEW PROBLEM-MERCHANDISING EXERCISE (1-5) 1 3 TRUCTIONS: Journalize the transactions described below. Each correct journal line will receive a 1. 4 5 ACCOUNTS DEBIT CREDIT TRANSACTIONS 6 O a. Johnson invested $40,000 cash O in the business. CASH ACCOUNTS PAYABLE JOHNSON DRAWING JOHNSON CAPITAL 0 - co a 8 O b. Johnson purchased inventory for 0 $24,000 on account. COST OF GOODS SOLD SALES 10 11 12 13 NOTES PAYABLE ACCOUNTS RECEIVABLE O c. Johnson borrowed $50,000 from Bank O of America on a 3-month 6% note. 14 15 O d. Johnson purchased equipment for 0 $30,000, paying cash. (Life = 5 years.) DEPRECIATION EXP. 16 17 18 INVENTORY O e. Johnson paid the rent in cash, 0 $3,400. RENT EXPENSE 19 20 21 22 23 24 25 O f. Johnson sold inventory on account for 0 $20,000. Record the revenue here. Og. The cost of goods sold on the sale was o $12,000. EQUIPMENT 26 27 INTEREST EXPENSE 0 h. Johnson withdrew cash from the O business, $1,000. 28 29 30 0 I. Johnson paid off the note, $50,750 ACCUM DEPR. EQUIP. JOURNAL Enter EBE Labudu x & fx G6 K L M N O Q G H D F E B 23 0 g. The cost of goods sold on the sale was 0 $12,000. EQUIPMENT INTEREST EXPENSE 24 25 26 27 0 h. Johnson withdrew cash from the O business, $1,000. 28 29 ACCUM DEPR. EQUIP. O i. Johnson paid off the note, $50,750 O including face value of $50,000 O and interest of $750. (Put interest first.) 0 j. Johnson recorded one month of O depreciation on the equipment, $500. 30 31 32 33 34 35 36 37 TRIAL BALANCE 38 CASH 39 ACCOUNTS RECEIVABLE 40 INVENTORY 41 EQUIPMENT 42 ACCUM DEPR. EQUIP 43 ACCOUNTS PAYABLE 14 NOTES PAYABLE DEBIT CREDIT #VALUE! MERCHANDISING INCOME STATEMENT SALES COST OF GOODS SOLD GROSS PROFIT INTEREST EXPENSE DEPRECIATION EXPENSE RENT EXPENSE NET INCOME 0 #VALUE! 45 CAPITAL 46 DRAWING 47 SALES 4B COST OF GOODS SOLD 49 INTEREST EXPENSE 50 DEPRECIATION EXP. 51 RENT EXPENSE 52 TOTALS 0 0