Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help would be appreciated. Prepare journal entries for the following transactions: Account No. Account Title Debit Amount Credit Amount 1. Used $20,000 cash to buy

Help would be appreciated.image text in transcribedimage text in transcribed

Prepare journal entries for the following transactions: Account No. Account Title Debit Amount Credit Amount 1. Used $20,000 cash to buy cars for resale: 2. Used a $2,000 check to pay for a billboard on Interstate 95 : 3. Sold a car for $10,000 in cash that cost $8,500 : (Show both the Sale and COGS entries) 4. Owner invested $10,000 cash into the business by purchasing stock: 5. Accrued payroll for administrative employees of $5,000 : (Ignore taxes and withholdings) 6. Accrued natural gas utility bill of $200. Bill is payable in 17 days: 7. Sold car parts for $1,000 in cash that cost $600 : (Show both Sales and COGS entries) 8. Was credited $100 for interest earned from interest bearing account at the bank: 9. Paid credit card bill of $500 to MBNA. The bill had been received and recorded earlier: 10. Transferred $10,000 from cash to the investment account: Caballero Automotive Chart of Accounts As of January 01, 2022 10110210310410511052106107108109Cash-CheckingRegionsBankInvestments-SunTrustBankAccountsReceivableOfficeSuppliesInventory-PartsInventory-CarsTechnologyCorporateCarFleetBuilding-1290ColiseumBlvd.Goodwill \begin{tabular}{ll} \hline 201 & Credit Card - MBNA \\ 202 & Accounts Payable \\ 203 & Car Loan (Corp Car Fleet) Regions Bank \\ 204 & Accrued Payroll Payable \\ 205 & Mortgage (1290 Gainesville Rd) Regions Bank \end{tabular} 301 Common Stock 302 Retained Earnings \begin{tabular}{ll} \hline 401 & Sales - Cars \\ 402 & Sales - Parts \& Service \\ 403 & Interest Income \\ 404 & Investment Income \\ \hline 500 & Cost of Goods Sold \\ 5011 & Labor Expense - Truck Drivers \\ 5012 & Labor Expense - Manufacturing \\ 5013 & Labor Expense - Administrative \\ 502 & Employee Benefits \\ 5041 & Utilities Expense - Electricity \\ 5042 & Utilities Expense - Natural Gas \\ 5043 & Utilities Expense - Water \\ 505 & Interest Expense \\ 506 & Advertising Expense \\ 507 & Technology Expense \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting The Ultimate Guide To Accounting For Beginners

Authors: Greg Shields

1st Edition

1546332820, 978-1546332824

More Books

Students also viewed these Accounting questions

Question

7.9 Determine how the final hiring decision is made.

Answered: 1 week ago