Hello, I am in need of help regarding the problem below.
I need assistance preparing the Journal Entry. I appreciate the help!
Cullumber Corporation's balance sheet at December 31,2021 , is presented below. During 2022 , the following transactions occurred. Cullumber uses a perpetual inventory system. 1. Cullumber paid $2,400 interest on the bonds on January 1,2022. 2. Cullumber purchased $242,900 of inventory on account. 3. Cullumber sold for $450,300 cash inventory which cost $249,500. Cullumber also collected $27,018 sales taxes. 4. Cullumber paid $231,800 on accounts payable. 5. Cullumber paid $2,400 interest on the bonds on July 1,2022. 6. The prepaid insurance ($5,900) expired on July 31 . 7. On August 1, Cullumber paid $12,000 for insurance coverage from August 1, 2022, through July 31,2023. 8. Cullumber paid $25,900 sales taxes to the state. 9. Paid other operating expenses, $86,800. 10. Redeemed the bonds on December 31,2022 , by paying $46,080 plus $2,400 interest. 11. Issued $86,200 of 8% bonds on December 31,2022 , at 103 . The bonds pay interest every June 30 and December 31. Adjustment data: 1. Recorded the insurance expired from item 7. 2. The equipment was acquired on December 31,2021 , and will be depreciated on a straight-line basis over 5 years with a $3,100 salvage value. 3. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Prepare journal entries for the transactions listed above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) (To record cost of goods sold.) 4. 5. 6. 7. 8. 9. 10. (To record payment of bond interest) Prepare the adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Cullumber Corporation's balance sheet at December 31,2021 , is presented below. During 2022 , the following transactions occurred. Cullumber uses a perpetual inventory system. 1. Cullumber paid $2,400 interest on the bonds on January 1,2022. 2. Cullumber purchased $242,900 of inventory on account. 3. Cullumber sold for $450,300 cash inventory which cost $249,500. Cullumber also collected $27,018 sales taxes. 4. Cullumber paid $231,800 on accounts payable. 5. Cullumber paid $2,400 interest on the bonds on July 1,2022. 6. The prepaid insurance ($5,900) expired on July 31 . 7. On August 1, Cullumber paid $12,000 for insurance coverage from August 1, 2022, through July 31,2023. 8. Cullumber paid $25,900 sales taxes to the state. 9. Paid other operating expenses, $86,800. 10. Redeemed the bonds on December 31,2022 , by paying $46,080 plus $2,400 interest. 11. Issued $86,200 of 8% bonds on December 31,2022 , at 103 . The bonds pay interest every June 30 and December 31. Adjustment data: 1. Recorded the insurance expired from item 7. 2. The equipment was acquired on December 31,2021 , and will be depreciated on a straight-line basis over 5 years with a $3,100 salvage value. 3. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Prepare journal entries for the transactions listed above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) (To record cost of goods sold.) 4. 5. 6. 7. 8. 9. 10. (To record payment of bond interest) Prepare the adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
