Only Need 2 & 3 please
2. ADJUSTING JOURNAL ENTRIES: Prepare journal entries for the following adjusting entries at 10/31,
- Declared (but have not yet paid) a cash dividend of $3 per common share.
- The Building will be depreciated with Straight-Line over 360 months (30 years). The salvage value is $10,000.
- The first periodic payment on the mortgage note will require the following:
Cash Payment: $1,049.21
Interest Charge: $ 875.00
Principal Deduction: $ 174.21
- A total of $150 of office supplies remain at the end of the month.
- The Office Furniture will be depreciated with the Double-Declining Balance Method. The useful life is years with a $500 savage value. Remember, were depreciating for one month.
- The promissory note will only require the recognition of the unpaid interest charge for October. Interest Charge: ($5,750 * .12) / 12 = $57.50
- The company estimates an allowance for uncollectible accounts of $150. There is no beginning balance in the allowance account.
3. PREPARE AN ADJUSTED TRIAL BALANCE.
CHART OF ACCOUNTS
| 100 | Cash | 270 | Notes Payable - Long-Term |
| 105 | Accounts Receivable | 275 | Mortgage Payable |
| 106 | Allowance for Bad Debts - Accounts | 280 | Bonds Payable |
| 110 | Notes Receivable | 281 | Premium on Bonds Payable |
| 115 | Other Receivables | 282 | Discount on Bonds Payable |
| 120 | Inventory | 300 | Common Stock |
| 121 | Estimated Inventory Returns | 301 | Additional Paid in Capital - Common |
| 125 | Supplies | 305 | Preferred Stock |
| 130 | Prepaid Insurance | 306 | Additional Paid in Capital - Preferred |
| 131 | Prepaid Rent | 310 | Treasury Stock |
| 132 | Prepaid Asset - Other | 311 | Additional Paid in Capital - Treasury |
| 135 | Other Current Assets | 350 | Retained Earnings |
| 150 | Land | 355 | Cash Dividends |
| 155 | Buildings | 356 | Stock Dividends |
| 156 | Accumulated Depreciation - Building | 400 | Service Revenue |
| 160 | Machinery & Equipment | 401 | Service Allowance |
| 161 | Accumulated Depreciation - M & E | 402 | Service Discount |
| 165 | Furniture & Fixtures | 405 | Sales Revenue |
| 166 | Accumulated Depreciation - F & F | 406 | Sales Return or Allowance |
| 170 | Land Improvements | 407 | Sales Discount |
| 171 | Accumulated Depreciation - Land Imp. | 410 | Interest Revenue |
| 200 | Accounts Payable | 425 | Other Revenue |
| 205 | Salaries Payable | 500 | Cost of Goods Sold |
| 210 | Other Accrued Expenses | 505 | Rent Expense |
| 215 | Employee Income Tax Withholding | 510 | Utilities Expense |
| 216 | FICA Payable | 515 | Salaries Expense |
| 217 | FUTA Payable | 520 | Payroll Tax Expense |
| 218 | SUTA Payable | 525 | Supplies Expense |
| 220 | Sales Tax Payable | 530 | Insurance Expense |
| 225 | Dividends Payable | 535 | Depreciation Expense |
| 230 | Income Tax Payable | 540 | Bad Debts Expense |
| 235 | Interest Payable | 545 | Warranty Expense |
| 240 | Refunds Payable | 550 | Interest Expense |
| 245 | Warranty Payable | 555 | Income Tax Expense |
| 250 | Notes Payable - Current | 560 | Miscellaneous Expense |
| 255 | Current Portion of Long-Term Debt | 600 | Gain on Asset Disposal |
| 260 | Other Payables | 601 | Loss on Asset Disposal |
The following transactions occurred in a merchandising business that was incorporated in the month of October The numbers beside the transactions represent the day of the month the transaction occurred. The company is using a sales price per unit of S10. There are no discounts (for sales or purchases) in this problem, and ignore sales returns and allowances for this problem. A chart of accounts is provided at the end of the assignment. All transactions must be recorded with the appropriate account number and monetary value, account titles are optional, but journal format should be consistent throughout the assignment. Debits should still be listed FIRST in all entries, then credits. 1. JOURNAL ENTRIES: Prepare an appropriate journal entry for each of the following transactions 1 The organization issued 2,000 shares of S10 par value common stock, they received $40,000 in cash 1 Purchased 300 units of inventory on account, $3.50 per unit. 1 Paid cash to ship the inventory, $300 total. 2 Purchased a building with land for the business with a fully amortized mortgage note (periodic principal and interest with constant payment amount) note, 20 year, 6%. In addition to the purchase price of S150,000. The land and building were independently appraised at S50,000 and $150,000 respectively. Attorney's fees and other costs associated with the joint purchase totaled $10,000 and were paid with cash. 2 Paid cash for the previous purchase of inventory (300 units on 10/1). 2 Office supplies were purchased from Office Supply Store on account - $550 3 Purchased 150 units of inventory on account, $3.50 per unit. 3 Paid cash to ship the inventory, $150 total. 3 Sold 320 products to customers on account, sales price of $10 per unit. (Determine the cost of products based on inventory purchases and any related transactions). Paid shipping costs on the above sale with cash, $160 Office furniture was purchased with a 2 year promissory note (periodic interest payment, lump sum principal), 12% annual interest, and payable semi-annually-$5,750 3 4 5 Sold 100 products to customers for cash. 5 Paid shipping costs on the above sale with cash, $50 5 Purchased 250 units of inventory on account - $3.50 5 Paid cash to ship the inventory, $250 6 Paid off all inventory account purchases with cash (150 units on 10/3 & 250 units on 10/5) 7 Received cash for previous sale on account (320 units on 103) 7 Sold 120 products to customers on account. 9 Sold 100 products to a customer for cash. 9 Paid shipping costs on the above sales with cash, $110 15 Received cash for previous sale on account (120 units on 107) 15 Paid employees with cash, Gross-$2,100. Federal and State withholdings, 15% and 5%, respectively FICA 7.65%. Employer payroll taxes include FUTA-596, SULA-5.4%, FICA match-7.65%. Purchased 350 units of inventory on account, S3.50 Paid cash to ship the inventory, $350 16 20 Sold 220 products to a customer on account. 20 Paid shipping costs on the above sale with cash, $110 26 Paid Office Supply Store (102) S550 28 Sold 100 products to a customer for cash. 29 Sold 50 products to a customer on account. 29 Paid shipping costs on the above sales with cash, $75 30 Paid employees with cash, Gross-$2,100. Federal and State withholdings, 15% and 5%, respectively FICA 7.65%. Employer payroll taxes include FUTA-596, SUTA-5.4%, FICA match-7.65%. The following transactions occurred in a merchandising business that was incorporated in the month of October The numbers beside the transactions represent the day of the month the transaction occurred. The company is using a sales price per unit of S10. There are no discounts (for sales or purchases) in this problem, and ignore sales returns and allowances for this problem. A chart of accounts is provided at the end of the assignment. All transactions must be recorded with the appropriate account number and monetary value, account titles are optional, but journal format should be consistent throughout the assignment. Debits should still be listed FIRST in all entries, then credits. 1. JOURNAL ENTRIES: Prepare an appropriate journal entry for each of the following transactions 1 The organization issued 2,000 shares of S10 par value common stock, they received $40,000 in cash 1 Purchased 300 units of inventory on account, $3.50 per unit. 1 Paid cash to ship the inventory, $300 total. 2 Purchased a building with land for the business with a fully amortized mortgage note (periodic principal and interest with constant payment amount) note, 20 year, 6%. In addition to the purchase price of S150,000. The land and building were independently appraised at S50,000 and $150,000 respectively. Attorney's fees and other costs associated with the joint purchase totaled $10,000 and were paid with cash. 2 Paid cash for the previous purchase of inventory (300 units on 10/1). 2 Office supplies were purchased from Office Supply Store on account - $550 3 Purchased 150 units of inventory on account, $3.50 per unit. 3 Paid cash to ship the inventory, $150 total. 3 Sold 320 products to customers on account, sales price of $10 per unit. (Determine the cost of products based on inventory purchases and any related transactions). Paid shipping costs on the above sale with cash, $160 Office furniture was purchased with a 2 year promissory note (periodic interest payment, lump sum principal), 12% annual interest, and payable semi-annually-$5,750 3 4 5 Sold 100 products to customers for cash. 5 Paid shipping costs on the above sale with cash, $50 5 Purchased 250 units of inventory on account - $3.50 5 Paid cash to ship the inventory, $250 6 Paid off all inventory account purchases with cash (150 units on 10/3 & 250 units on 10/5) 7 Received cash for previous sale on account (320 units on 103) 7 Sold 120 products to customers on account. 9 Sold 100 products to a customer for cash. 9 Paid shipping costs on the above sales with cash, $110 15 Received cash for previous sale on account (120 units on 107) 15 Paid employees with cash, Gross-$2,100. Federal and State withholdings, 15% and 5%, respectively FICA 7.65%. Employer payroll taxes include FUTA-596, SULA-5.4%, FICA match-7.65%. Purchased 350 units of inventory on account, S3.50 Paid cash to ship the inventory, $350 16 20 Sold 220 products to a customer on account. 20 Paid shipping costs on the above sale with cash, $110 26 Paid Office Supply Store (102) S550 28 Sold 100 products to a customer for cash. 29 Sold 50 products to a customer on account. 29 Paid shipping costs on the above sales with cash, $75 30 Paid employees with cash, Gross-$2,100. Federal and State withholdings, 15% and 5%, respectively FICA 7.65%. Employer payroll taxes include FUTA-596, SUTA-5.4%, FICA match-7.65%
