journal entries 1-10
Robin Hood Electronics, Inc. After-Closing Trial Balance July 31, 2020 Credit Debit 23,700 367,920 23,831 7,460 247 11,160 19,730 3,729 12,180 60,000 75,000 7,800 28,500 Account Cash Available-for-sale securities, bonds at fair value Marketable securities, stocks at fair value Accounts receivable, gross Allowance for doubtful accounts Interest receivable Merchandise inventory Prepaid insurance Store supplies inventory Land Building, at cost Accumulated depreciation, building Equipment, at cost Accumulated depreciation, equipment Accounts payable, gross Salaries payable Federal income taxes payable Federal FICA taxes payable Michigan income taxes payable Unemployment taxes payable Sales taxes payable Cash dividends payable Unearned repair revenue Mortgage payable Common stock, $2 par value Additional paid in capital, on common stock Additional paid in capital, on treasury stock Retained earnings Accumulated other comprehensive income Treasury stock, at cost Total 9,120 26,405 625 175 47 28 5 176 11,781 1,524 71,636 53,000 100,000 428 367,493 17,280 650,490 650,490 V 1 Robin Hood Electronics, Inc., paid the salaries due to its employees at the start of August. 2 Robin Hood Electronics, Inc., paid the cash dividend to its common stockholders. The $0.45 per share dividend had been declared in July. 3 Robin Hood Electronics, Inc., purchased store display equipment, on August 1, 2020, for $7,776 on account from other vendors. The equipment is expected to have a useful life of 6 years and a $2,592 salvage value. (Do not depreciate yet; that is a month-end adjusting entry.) 4 Robin Hood Electronics, Inc., paid $864 cash to have the new equipment installed. 5 Robin Hood Electronics, Inc., bought $30,760 of merchandise inventory on account, terms 2/10,1/30 during August The merchandise inventory that was bought included 77 televisions at a gross cost of $140 each ($10780) and other electronics for $5,000 from Nottingham Industries for a gross cost of $15780. There were some component parts purchased from Sherwood Enterprises at a gross cost of $675. The remaining items consisted of other electronics (no televisions or component parts), and were from other vendors. 6 Robin Hood Electronics, Inc., sold merchandise for $22,460 and computer repair services for $3,135. The sales tax rate is 5% and is applicable to all merchandise and repair services. Of the total due, Robin Hood Electronics, Inc., collected $13,125 in cash and $13750 was on account. Sales on account included the sale of 20 televisions to Maid Marian for $238 each plus tax, and sales of other electronics to Friar Tuck for $2,052 plus tax. The remaining sales and services were made to other clients The cost of all of these items sold or used in the repairs services are discussed separately, below. 7 The cost of the merchandise sold in 6 above, other than the 20 televisions, was $5,487. (Hint: Use the inventory card for the televisions and determine the cost of the televisions sold using the appropriate inventory cost flow assumption.) 8 The cost of component parts used in providing computer repairs for clients in 6 above was $1,300. 9 Maid Marian returned 9 of the televisions on credit. (Hint: Two entries are required because Robin Hood Electronics, Inc., uses the perpetual inventory method.) 10 The firm collected $9,965 on account. This included $1,973 from Maid Marian and $1,642 from Friar Tuck, but none from Little John The remaining collections came from other clients
