Information Journal Entries T-Accounts Trial Balance Income Statement Balance Sheet ch . Bordo Home Freda Adjusting Entries Date Account Particulars Debit ($) Credit ($) Jan-31 Interest Expense 7,37,917 Discount on bonds payable (34,50,000/15* 12) 19,167 Cash (115,000,000*7.5%/12) 7,18,750 (To record interest expense) Jan-31 Rent Expenses (22,000,000/36) 6,11,111 Prepaid Rent 6,11,111 (To record rent expense) Jan-31 Supplies Expenses (8,000,000-4,600,000) 34,00,000 Supplies 34,00,000 (To record supplies expenses) Jan-31 Customer Advance Account H Inc. (49,000,000/7000* 2,45,00,000 Sales Revenue 2,45,00,000 (To record earned revenue) Jan-31 Cost of goods sold (3500*5000) 1,75,00,000 Merchandise Inventory 1,75,00,000 (To record cost of goods sold) Jan-31 Bad Debt Expenses (185,000,000*7.5%) 1,38,75,000 Allowance for doubtful accounts 1,38,75,000 (To record estimated bad debt expenses) CREDIT($) ITEM 1 DEBIT(S) $ 110,000,000 $ 20,000,000 $ 90,000,000 2 3 $ 22,000,000 $ 22,000,000 ACCOUNTS TITLE AND EXPLANATION Dr. Cash (5,000,000 X 522) Cr. Common Stock (5,000,000 X 54) Dr. Paid in capital in Excess of Par-Common (To record issue of common stock at $22 per share) NO ENTRY Dr. Prepaid Rent Cr. Cash (To record rent paid in advance for 3 years) Dr. Merchandise Invnetory Cr. Cash Cr. Accounts Payable (To record inventory purchased by making part payment and part on account) Dr. Supplies Cr. Accounts Payable To record purchase of supplies on account) 4 $175,000,000 $ 85,000,000 $ 90,000,000 5 $8,000,000 $ 8,000,000 6 $ 155,000,000 Dr. Fixed Assets Cr. Cash Cr. Accounts Payable (To record purchase fixed assets) $ 55,000,000 $100,000,000 7 $111,550,000 $ 3,450,000 Dr. Cash Dr. Discount on bonds payable Cr. 7.5% Bonds Payable (To record bond issued $ 115,000,000 8 $ 49,000,000 $ 49,000,000 9 $ 13,750,000 $ 13,750,000 Dr. cash Cr. Customer Advance Account-Hinc (To record advance received from customers) Dr. Patent Cr. Cash (To record patent purchase in cash) Dr. Accounts Receivable Cr.Sales revenue (To record sales on account) Dr. Cost of goods sold Cr. Merchandise invnetory (To record cost of goods sold) 10 $185,000,000 $185,000,000 $ 95,000,000 $ 95,000,000 11 $ 3,510,000 Dr. Treasury Stock (135,000 X $26) Cr. Cash (To repruchase of own stock) $ 3,510,000 Common Stock Sales Revenue Debits Debits Credits Credits 20,000,000 Entry #1 20,000,000 Additional Paid In Capital Debits Credits 90,000,000 Entry #1 90,000,000 Treasury Stock Debits Credits Retained Earnings Debits Credits 0 tml aari Hagan taste IN fat Dir draanae tarath tails itrala Information Journal Entries T-Accounts Trial Balance Income Statement Balance Sheet ch . Bordo Home Freda Adjusting Entries Date Account Particulars Debit ($) Credit ($) Jan-31 Interest Expense 7,37,917 Discount on bonds payable (34,50,000/15* 12) 19,167 Cash (115,000,000*7.5%/12) 7,18,750 (To record interest expense) Jan-31 Rent Expenses (22,000,000/36) 6,11,111 Prepaid Rent 6,11,111 (To record rent expense) Jan-31 Supplies Expenses (8,000,000-4,600,000) 34,00,000 Supplies 34,00,000 (To record supplies expenses) Jan-31 Customer Advance Account H Inc. (49,000,000/7000* 2,45,00,000 Sales Revenue 2,45,00,000 (To record earned revenue) Jan-31 Cost of goods sold (3500*5000) 1,75,00,000 Merchandise Inventory 1,75,00,000 (To record cost of goods sold) Jan-31 Bad Debt Expenses (185,000,000*7.5%) 1,38,75,000 Allowance for doubtful accounts 1,38,75,000 (To record estimated bad debt expenses) CREDIT($) ITEM 1 DEBIT(S) $ 110,000,000 $ 20,000,000 $ 90,000,000 2 3 $ 22,000,000 $ 22,000,000 ACCOUNTS TITLE AND EXPLANATION Dr. Cash (5,000,000 X 522) Cr. Common Stock (5,000,000 X 54) Dr. Paid in capital in Excess of Par-Common (To record issue of common stock at $22 per share) NO ENTRY Dr. Prepaid Rent Cr. Cash (To record rent paid in advance for 3 years) Dr. Merchandise Invnetory Cr. Cash Cr. Accounts Payable (To record inventory purchased by making part payment and part on account) Dr. Supplies Cr. Accounts Payable To record purchase of supplies on account) 4 $175,000,000 $ 85,000,000 $ 90,000,000 5 $8,000,000 $ 8,000,000 6 $ 155,000,000 Dr. Fixed Assets Cr. Cash Cr. Accounts Payable (To record purchase fixed assets) $ 55,000,000 $100,000,000 7 $111,550,000 $ 3,450,000 Dr. Cash Dr. Discount on bonds payable Cr. 7.5% Bonds Payable (To record bond issued $ 115,000,000 8 $ 49,000,000 $ 49,000,000 9 $ 13,750,000 $ 13,750,000 Dr. cash Cr. Customer Advance Account-Hinc (To record advance received from customers) Dr. Patent Cr. Cash (To record patent purchase in cash) Dr. Accounts Receivable Cr.Sales revenue (To record sales on account) Dr. Cost of goods sold Cr. Merchandise invnetory (To record cost of goods sold) 10 $185,000,000 $185,000,000 $ 95,000,000 $ 95,000,000 11 $ 3,510,000 Dr. Treasury Stock (135,000 X $26) Cr. Cash (To repruchase of own stock) $ 3,510,000 Common Stock Sales Revenue Debits Debits Credits Credits 20,000,000 Entry #1 20,000,000 Additional Paid In Capital Debits Credits 90,000,000 Entry #1 90,000,000 Treasury Stock Debits Credits Retained Earnings Debits Credits 0 tml aari Hagan taste IN fat Dir draanae tarath tails itrala
