Question
Journalize the following transactions: 1. ABC purchased 6, $1,000, 5% bonds dated April 1 from Frontier Industries. The bonds pay interest once each year for
Journalize the following transactions:
1. ABC purchased 6, $1,000, 5% bonds dated April 1 from Frontier Industries. The bonds pay interest once each year for five years. The bonds were priced to yield 6%. ABC intends to hold the bonds until they mature.
2. Purchased 90 shares of Nike Stock at $84.28. The company expects to sell stock within the next 90 days.
3. ABC company issued a zero interest bearing note in exchange for $11,000. ABC borrow at 7% interest. Note is due in 3 years.
4. ABC hired 5 workers. Will pay them $15/hour
5. ABC was hired by Zapp Records and received $12,000 for 3 month of cleaning service in advance.
6. Obtained a license to sell Janarue Cleaning products. ABC piad $5000 for the right to exclusively sell products for 10 years.
7. Purchased a van for $36,000 by issuing a 3 year 5% notes.
8. Purchased on account 100 bottles of FABLOW organic general cleaning products from Janarue to sell to others, $2,890. Paid $40.00 for shipping costs. Use periodic, FIFO Inventory method to account for these cleaning supplies. 2%/15, net 60.
9. Sold 25 bottles of FABLOW at $35.00 each at Lebronson Industries
10. Paid employees. Calculate payroll. Gross pay was $3,700, FICA 6.2%, Medicare was 1.45% and federal tazes was $390.
11. Employer taxes related to April 14th payroll includes FICA 6.2%, Medicare 1.45%, FUTA .08%, SUTA 2.3%. Record the payroll tax expense entry.
12. Billed customers for cleaning services $9,100
13. Paid employees taxes withheld (transaction 10)
14. paid employer taxes (transaction 11)
15. Paid bill for purchase on account (transaction 8)
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