Listed below are a series of accounts. They are numbered for easy identification. For each of the following transactions you are to prepare the journal entries by writing in the appropriate spaces for the answers: first, the number(s) of the account(s) debited and the number(s) of the account credited; and second, the S amount(s) of the debits and credits. (The same account may be used for more than one answer. More than one account may be debited or credited in one transaction.) Account # 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Account Title: PPE (Property, Plant and Equipment) Prepaid Rent Expense Rent Expense Insurance Expense Prepaid Insurance Expense Insurance Revenue Rent Revenue Unearned Rent Revenue Depreciation Expense Accumulated Depreciation Cash Paid In Capital Interest Expense Interest Revenue Accounts Payable Accounts Receivable Inventory Cost of Goods Sold Sales Revenue Loans Payable Dividends Declared Retained Earnings Dividends Payable Subscription Revenue Wages Expense Wages Revenue Tax Revenue Tax Expense Loss on Sale of PPE Gain on Sale of PPE Loans Receivable Gain on Appreciation Loss on Depreciation 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33 (a.) ABC company acquired equipment paying in cash $3 million for 75% of the price of the equipment and the balance will be paid soon. (b.) The company purchased 3 million units for its inventory. One half in cash and the rest on credit. The cost per unit was $20. (c.) The company sold one million units (purchased as described in (b)], to customers for $25 per unit. $10 million (out of the $25 million) was received in cash and the balance was sold on credit. (d.) The market value of a piece of land that the company acquired a few years ago (for $3 million) went up to $5 million. (e.) The company sold the piece of land, previously mentioned in (d), for $6 million in cash. (1 On November 1", he company paid rent in advance $24 million for the next 24 months. (g) On January 1", the company acquired equipment for $12 million in cash. (It plans to sell it after 5 years for an estimated amount of $7 million.) (h) On March 15, the company paid in advance for insurance $36 million for the next 3 years. (i) It is the end of the year now. Please relate to the rent payment as described in item (f). (j). It is the end of the year now. Please relate to the purchase of the equipment as described in item (g). (k) The company declared (but did not pay it yet) dividends of $30 million. (1) The company paid dividends of $20 million. (m). It is the end of the year now. Please relate to the insurance payment in item (h). Accounts Number: S Amounts (in millions): Debit Credit Debit Credit a. 11/15 3 2.25/0.750 (-3) b. 17 11/15 30 30 (-2) c. 11/16/18 17/19 _10/15/5 _2015_(-7) d. 32 2__(-6) 11 f. 24 24 co 12 12 h. 11 36 36 i. 2 12 12__ (-2) . 10 k. 21 23 30 30 I. 23 11 20 20 m. 5 12 12 (-2)
