Record each of the transactions listed above in the General Journal tab (these are shown as items 111) assuming a perpetual FIFO inventory system.
On January 1, 2021, the general ledger of Parts Unlimited includes the following account balances: Accounts Cash Accounts Receivable Inventory Land Equipment Accumulated depreciation Accounts Payable Common stock Retained Earnings Totals Debit Credit $166,400 16,400 41,800 344,000 351,500 $176,000 18,800 524,000 201,300 $920,100 $920,100 From January 1 to December 31, the following summary transactions occurred: a. Purchased inventory on account, $329,800. b. Sold inventory on account, $581,200. The inventory cost $346,600. c. Received cash from customers on account. $562,700. d. Paid cash on account, $332,500. e. Paid cash for salaries, $98,700, and for utilities, $56,700. In addition, Parts Unlimited had the following transactions during the year: April 1 Purchased equipment for $99,000 using a note payable, due in 12 months plus 8% interest. The company also paid cash of $3,600 for freight and $4,200 for installation and testing of the equipment. The equipment has an estimated residual value of $10,800 and a ten-year service life. June 30 Purchased a patent for $44,000 from a third-party marketing company related to the packaging of the company's products. The patent has a 20- year useful life, after which it is expected to have no value. October 1 Sold equipment for $34,600. The equipment cost $64,700 and had accumulated depreciation of $41,400 at the beginning of the year. Additional depreciation for 2021 up to the point of the sale is $8,900. (Hint: Total accumulated depreciation equals the amount at the beginning of the year plus the amount recorded for the current year.) November 15 Several older pieces of equipment were improved by replacing major components at a cost of $58, 100. These improvements are expected to enhance the equipment's operating capabilities. (Record this transaction using Alternative 2-capitalization of new cost.] Year-end adjusting entries: a. Depreciation on the equipment purchased on April 1, 2021, calculated using the straight-line method. b. Depreciation on the remaining equipment, $25,500. C. Amortization of the patent purchased on June 30, 2021, using the straight-line method. d. Accrued interest payable on the note payable. e. Equipment with an original cost of $69,800 had the following related information at the end of the year: accumulated depreciation of $43,500, expected cash flows of $19,700, and a fair value of $12,800. f. Accrued income taxes at the end of the year are $16,600. 1. Record the purchase of inventory on account, $329,800. 2. Record the sale of inventory on account, $581,200. 3. Record the cost of inventory sold, $346,600. 4. Record the cash received from customers on account, $562,700. 5. Record the cash paid on account, $332,500. 6. Record the cash paid for salaries, $98,700, and for utilities, $56,700. 7. Record the purchase of equipment for $99,000 using a note payable, due in 12 months plus 8% interest. The company also paid cash of $3,600 for freight and $4,200 for installation and testing of the equipment. The equipment has an estimated residual value of $10,800 and a ten-year service life 8. Record the purchase of a patent for $44,000 from a third-party marketing company related to the packaging of the company's products. The patent has a 20-year useful life, after which it is expected to have no value. 9. Record the depreciation of 8,900 for current year on equipment sold October 1. 10. Record the sale of equipment for $34,600. The equipment cost $64,700 and had accumulated depreciation of $41,400 at the beginning of the year 11. Several older pieces of equipment were improved by replacing major components at a cost of $54,100. These improvements are expected to enhance the equipment's operating capabilities. Record this transaction using Alternative 2 - capitalization of new cost. 12. Record the adjusting entry for depreciation on the equipment purchased on April 1, 2021, calculated using the straight-line method. 13. Record the adjusting entry for depreciation on the remaining equipment, $25,500. 14. Record the adjusting entry for amortization of the patent purchased on June 30, 2021, using the straight-line method. 15. Record the adjusting entry for accrued interest payable on the note payable. 16. Record the adjusting entry for equipment with an original cost of $69,800 that had the following related information at the end of the year: accumulated depreciation of $43,500, expected cash flows of $19,700, and a fair value of $12,800. 17. Record the adjusting entry for accrued income taxes at the end of the year, $16,600 18. Record the closing entry for revenue. 19. Record the closing entry for expenses
