Journal entries please!
5. Operations a. Two rent payments of $1,800 were made during 20Y7 (on March 1 and September 1). The payments were for rent on the store building and were prepaid for six months each. The balance in the prepaid account at the end of 20Y7 represents the rent for January and February 20Y8 b. Cash paid out for wages during 20Y7 totaled $12,200. Records indicate that salaries for the last week of December amounted to $300 and would be paid at the end of the first week in January (a two-week pay period) c. Other expenses (paid in cash) totaled $2,150. V 6. Income Taxes The company paid its 20Y6 income taxes in March of 20Y7 b. The company has a 30% income tax rate for both 20Y6 and 20Y7. a. 7. Common Stock a. Dividends of $3,600 were declared and paid during 20Y7. b. New common stock was issued for $10,000 during 20Y7 BALANCE SHEET as of DECEMBER 31, 20Y6 Assets $15,000 Cash Accounts Receivable 5,000 Less: Allowance for Bad Debts (500) Net Accounts Receivable 4,500 Prepaid Rent Inventory 500 4,000 24,000 Total Current Assets 35,700 Property, Plant, and Equipment Less: Accumulated Depreciation Net Property, Plant, and Equipment (11,800) 23,900 $47,900 Total Assets Liabilities and Owner's Equity Accounts Payable Wages Payable Interest Payable Income Taxes Payable Notes Payable $2,500 170 64 900 2,400 Total Current Liabilities 6,034 20,000 Common Stock Retained Earnings Total Liabilities and Owner's Equity 21,866 $47,900 5. Operations a. Two rent payments of $1,800 were made during 20Y7 (on March 1 and September 1). The payments were for rent on the store building and were prepaid for six months each. The balance in the prepaid account at the end of 20Y7 represents the rent for January and February 20Y8 b. Cash paid out for wages during 20Y7 totaled $12,200. Records indicate that salaries for the last week of December amounted to $300 and would be paid at the end of the first week in January (a two-week pay period) c. Other expenses (paid in cash) totaled $2,150. V 6. Income Taxes The company paid its 20Y6 income taxes in March of 20Y7 b. The company has a 30% income tax rate for both 20Y6 and 20Y7. a. 7. Common Stock a. Dividends of $3,600 were declared and paid during 20Y7. b. New common stock was issued for $10,000 during 20Y7 BALANCE SHEET as of DECEMBER 31, 20Y6 Assets $15,000 Cash Accounts Receivable 5,000 Less: Allowance for Bad Debts (500) Net Accounts Receivable 4,500 Prepaid Rent Inventory 500 4,000 24,000 Total Current Assets 35,700 Property, Plant, and Equipment Less: Accumulated Depreciation Net Property, Plant, and Equipment (11,800) 23,900 $47,900 Total Assets Liabilities and Owner's Equity Accounts Payable Wages Payable Interest Payable Income Taxes Payable Notes Payable $2,500 170 64 900 2,400 Total Current Liabilities 6,034 20,000 Common Stock Retained Earnings Total Liabilities and Owner's Equity 21,866 $47,900
