G H M N O P Q R EXERCISE (1-5) 1. SCORE: CASH ACCOUNTS PAYABLE JOHNSON DRAWING JOHNSON CAPITAL D 1 2 REVIEW PROBLEM-MERCHANDISING 3 TRUCTIONS: Journalize the transactions described below. Each correct journal line will receive a 1. 4 5 ACCOUNTS DEBIT CREDIT TRANSACTIONS O a. Johnson invested $40,000 cash 7 O in the business. 3 2 ob. Johnson purchased inventory for 0 0 $24,000 on account. 1 2 O c. Johnson borrowed $50,000 from Bank 3 O of America on a 3-month 6% note. 4 5 O d. Johnson purchased equipment for 5 0 $30,000, paying cash (Life = 5 years.) COST OF GOODS SOLD SALES NOTES PAYABLE ACCOUNTS RECEIVABLE DEPRECIATION EXP. O e. Johnson paid the rent in cash, 0 $3,400. INVENTORY RENT EXPENSE o 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. EQUIPMENT INTEREST EXPENSE O h. Johnson withdrew cash from the o business, $1,000 ACCUM DEPR. EQUIP. O i. Johnson paid off the note, $50,750 O including face value of $50,000 0 and interest of $750.(Put interest first.) Oj. Johnson recorded one month of o depreciation on the equipment. $500. * JOURNAL 19 G H 0 $3,400. L M N @ P of. Johnson sold inventory on account for 0 $20,000. Record the revenue here. RENT EXPENSE 20 21 22 23 24 25 26 O g. The cost of goods sold on the sale was 0 $12,000. EQUIPMENT INTEREST EXPENSE 27 28 Oh. Johnson withdrew cash from the O business, $1,000 29 ACCUM DEPR. EQUIP. 30 31 32 O i. Johnson paid off the note, $50,750 0 including face value of $50,000 O and interest of $750. (Put interest first.) 33 O j. Johnson recorded one month of O depreciation on the equipment, $500. DEBIT CREDIT #VALUE! 34 35 36 37 TRIAL BALANCE 38 CASH 39 ACCOUNTS RECEIVABLE 40 INVENTORY 41 EQUIPMENT 42 ACCUM DEPR. EQUIP. 43 ACCOUNTS PAYABLE 44 NOTES PAYABLE 45 CAPITAL 46 DRAWING 47 SALES 48 COST OF GOODS SOLD 49 INTEREST EXPENSE 50 DEPRECIATION EXP. 51 RENT EXPENSE 52 TOTALS MERCHANDISING INCOME STATEMENT SALES COST OF GOODS SOLD GROSS PROFIT INTEREST EXPENSE DEPRECIATION EXPENSE RENT EXPENSE NET INCOME 0 #VALUE! 0 0 53 TIDAL