Question
Richmond company engaged in the following transactions during 2013: a. purchased 160,000 of supplies from ABC Supplies on February 16th. Amount due in full on
Richmond company engaged in the following transactions during 2013: a. purchased 160,000 of supplies from ABC Supplies on February 16th. Amount due in full on March 31st. b. paid 25% percent of the purchased merchandise (transaction a)February 26th. c. on March 31st negotiated a payment extension with ABC for the remainder of the balance from the February 16th purchase by signing a one-year, 10% note. d. borrowed $300,000 on a 10 month, 8% interest bearing note on April 30th. e. purchased $78,000 of merchandise on June 4th amount due in full on June 30th. f. pay for the purchase merchandise ( transaction e) on june 24. g. received from Haywood Inc on August 19th, a $22,000 deposit against a total selling price of $220,000 for services to be performed for Haywood. h. pay quarterly installments of Social Security and Medicare and individual income tax withholdings comma as shown Below, on October 15th. The Social Security and Medicare were previously recorded as expenses during the quarter and the amounts paid represent both employee and employer shares(50% each): Social Security taxes $185,000 Medicare taxes $43,266 income tax withheld $319,000 i. on December 15th Richmond completed the service is ordered by Heywood on August 19th. He was remaining balance of $198,000 is due on January 31st.
required: 1. prepare journal entries for these transactions 2. prepare any adjusting entries necessary at December 31st, 2013.
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