QUESTION 5 Galactic Enterprises (Galactic) is a sole proprietorship (owned by Judy Green) that repairs televisions (TVs) Record the debit credit journal entries for the following transactions in 2014, along with any adjusting journal entries required at December 31 st 2014 Write N A if a journal entry is not required Assume year end is December 31,2014 and all transactions took place in 2014 Dates and explanations are NOT required in the journal entries Galactic Enterprises only prepares Annual Financial Statements 1) Galactic fixed a TV for Mrs Smith for $300 on December 15th Allowed Mrs Smith to pay for the completed service at a later date, in January 2015 2) On December 29 th , Galactic received a $ 250 cash advance payment from Mr Brown for a TV repair, but Galactic Enterprises won't be able to begin to fix the TV until January 2015 3) Galactic Enterprises purchased a small shop on July 1 st of 2014 for $200,000 cash It was determined that the Building component was $120,000 and the Land component was $80,000 Galactic Enterprises has determined that the estimated life of the Building is 20 years 4) Judy stopped at Casino Niagara on the way to a customer call and lost $100 playing Blackjack 5) Judy decided to withdraw $100 out of her Galactic Enterprises bank account to cover her gambling debt This was her only withdrawal she made during the year 6) On Dec 28 th , Galactic collected half the amount from Mrs Smith that was owed in transaction 1 7) On October 1 st , 2014, Galactic Enterprises paid $2,400 in advance, for 1 year's worth of rent for a storage unit 8) On December 20 th , 2014 Galactic Enterprises agreed to hire a new assistant and will pay him $700 a week He begins work the second week of January 2015 9) On December 27 th Galactic Enterprises fully paid one of its suppliers that it had owed $1250 previously

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 22, 2024

QUESTION 5

Galactic Enterprises (Galactic) is a sole proprietorship (owned by Judy Green) that repairs televisions (TVs). Record the debit/credit journal entries for the following transactions in 2014, along with any adjusting journal entries required at December 31^st2014. Write N/A if a journal entry is not required.Assume year end is December 31,2014 and all transactions took place in 2014. Dates and explanations are NOT required in the journal entries. Galactic Enterprises only prepares Annual Financial Statements.

1) Galactic fixed a TV for Mrs. Smith for $300 on December 15th. Allowed Mrs. Smith to pay for the completed service at a later date, in January 2015.
2) On December 29^th, Galactic received a $ 250 cash advance payment from Mr. Brown for a TV repair, but Galactic Enterprises won't be able to begin to fix the TV until January 2015.
3) Galactic Enterprises purchased a small shop on July 1^stof 2014 for $200,000 cash. It was determined that the Building component was $120,000 and the Land component was $80,000. Galactic Enterprises has determined that the estimated life of the Building is 20 years.
4) Judy stopped at Casino Niagara on the way to a customer call and lost $100 playing Blackjack.
5) Judy decided to withdraw $100 out of her Galactic Enterprises bank account to cover her gambling debt. This was her only withdrawal she made during the year.
6) On Dec 28^th, Galactic collected half the amount from Mrs. Smith that was owed in transaction 1.
7) On October 1^st, 2014, Galactic Enterprises paid $2,400 in advance, for 1 year's worth of rent for a storage unit.
8) On December 20^th, 2014 Galactic Enterprises agreed to hire a new assistant and will pay him $700 a week. He begins work the second week of January 2015.
9) On December 27^thGalactic Enterprises fully paid one of its suppliers that it had owed $1250 previously.