Declared dividend of $1 per share of common stock, payable on October 1, 20x1. Collected $5,000 of accounts receivable from July sales. Sales for the month of August-$32,000; % in cash, the rest on account. September 1: Paid salaries for August-$3,500 Office equipment has a seven-year useful life and no salvage value. The trucks have five-year useful lives and estimated salvage value of $1,000 each. The automobile has a three-year useful life and $2,000 estimated salvage value. Depreciation for the office equipment is figured using straight-line; for the trucks-double-declining balance; for the car-double-declining balance. Monthly depreciation is calculated by dividing the annual amount by 12. The inventory at 8/31/20X1 is 130 deluxe units, 100 regular units and 60 charcoal units. FIFO is used for deluxe units, LIFO for regular units and weighted average for charcoal units. The franchise is amortized on a straight-line basis. 1) Please journalize the following as taken from Exam # 3 : " 10,000 shares of $10 par value stock were issued in exchange for $70,000 cash, land worth $60,000 and a truck worth $15,000: TPIC 145,000; TCASH 70,000; TRUCK 15,000; TLAND 60,000 A) ASSETS 145,000; TPIC 45,000; TAPIC 100,000 B) TCOMMON STOCK 100,000; TLAND 60,000; TCASH 70,000; 1TRUCK 15,000 C) 100,000 PIC; TAPIC 45,000; 170,000 CASH; TLAND 60,000; TRUCK 15,000 D) E) NONE OF THE ABOVE 2) How would you journalize the third transaction in February? A) MINSURANCE EXPENSE 4,000; 1 CASH 4,000 B) MINSURANCE EXPENSE 4,000; TA/P 4,000 Declared dividend of $1 per share of common stock, payable on October 1, 20x1. Collected $5,000 of accounts receivable from July sales. Sales for the month of August-$32,000; % in cash, the rest on account. September 1: Paid salaries for August-$3,500 Office equipment has a seven-year useful life and no salvage value. The trucks have five-year useful lives and estimated salvage value of $1,000 each. The automobile has a three-year useful life and $2,000 estimated salvage value. Depreciation for the office equipment is figured using straight-line; for the trucks-double-declining balance; for the car-double-declining balance. Monthly depreciation is calculated by dividing the annual amount by 12. The inventory at 8/31/20X1 is 130 deluxe units, 100 regular units and 60 charcoal units. FIFO is used for deluxe units, LIFO for regular units and weighted average for charcoal units. The franchise is amortized on a straight-line basis. 1) Please journalize the following as taken from Exam # 3 : " 10,000 shares of $10 par value stock were issued in exchange for $70,000 cash, land worth $60,000 and a truck worth $15,000: TPIC 145,000; TCASH 70,000; TRUCK 15,000; TLAND 60,000 A) ASSETS 145,000; TPIC 45,000; TAPIC 100,000 B) TCOMMON STOCK 100,000; TLAND 60,000; TCASH 70,000; 1TRUCK 15,000 C) 100,000 PIC; TAPIC 45,000; 170,000 CASH; TLAND 60,000; TRUCK 15,000 D) E) NONE OF THE ABOVE 2) How would you journalize the third transaction in February? A) MINSURANCE EXPENSE 4,000; 1 CASH 4,000 B) MINSURANCE EXPENSE 4,000; TA/P 4,000
