SExam & Group Problem DUE APRIL 20, 2010 The following transactions occurred in a merchandising business that was incorporated in the month of October . 2 . ADJUSTING JOURNAL ENTRIES : Prepare journal entries for the following adjusting entries at 10131 , The numbers beside the transactions represent the day of the month the transaction occurred . The company" is Declared , but have not yet paid ; a cash dividend of $3 per common share . using a sales price per unit of S101. There are no discounts ( for sales or purchases ; in this problem , and ignore* The Building will be depreciated with Straight - Line over 3`` months 130 ' cars ) . The salvage Value sales returns and allowances for this problem .* chart of accounts is provided at the end of the assignment . All is SID, JON .` transactions must be recorded with the appropriate account number and monetary value , account titles are* The First periodic payment on the mortgage note will require the following : Optional , our joumal format Should be consistent throughout the assignment. Dicbits should still be listed FIRST Cash Payment :` $1, 0149.21 in all entries , then credits .* Interest Charge :` $ $75. 00 Principal Deduction :` 174.21 1 . JOURNAL ENTRIES : Prepare an appropriate journal entry for each of the following transactions . The organization issued 2, 000 shares of $ 10 par value common stock , they received $401, 200 in cash . A total of SIGN of office supplies remain at the end of the month . Purchased 3 010 units of inventory on account , $3. 50 per unit .\\ The Office Furniture will be depreciated with the Double - Declining Balance Method . The useful Paid cash to ship the inventory , 5301 total .` life is 5 years with a $570 savage value . Remember , we're depreciating for one month .` Purchased a building with land for the business with a fully amortized mortgage nate ( periodic* The promissory note will only require the recognition of the unpaid interest charge For October . principal and interest with constant payment amount ; note , 20 year , {{`. In addition to the purchase Interest Charge : 155, 750 + . 121 / 12 = 597. 50 Price OF $ 150. 010 . The land and building were independently appraised at $50. and and $150. 0010 . The company estimates an allowance For uncollectible accounts of $150 . There is no beginning* respectively _ Attorney" ; Fees and other costs associated with the joint purchase totaled $10. 1010 and balance in the allowance account .* were paid with cash _ Paid cash for the previous purchase of inventory 1300 units on long .` OFFICE supplies were purchased from Office Supply Store on account - $5 50 3 . PREPARE AN ADJUSTED TRIAL BALANCE . Purchased 150 units of inventory on account , $3. 50 per unit .\\ Paid cash to ship the inventory , $150 total _ Sold 320 products to customers an account , sales price of $ 10 per unit ( Determine the cast of products* based on inventory purchases and any related transactions ] .` Paid shipping costs on the above sale with cash , $160* LIFTice furniture was purchased with a ? "' car promissory note ( periodic interest payment , Lump Sum principal ;. 12%'` annual interest , and payable semi - annuall; - 5 5. 750 . Sold 100 products to customers for cash . Paid shipping costs on the above sale with cash, $50 Purchased 250 units of inventory' on account - 53. 50. Paid cash to ship the inventory , $250 .` Paid off all inventory account purchases with cash ( 150 units on 10/3 & 250 units on 1015 ). Received cash for previous sale on account ( 3 20 units on 10131 . Sold 120 products to customers an account . Sold In` products to & customer for cash .` Paid shipping costs on the above sales with cash , 51 10 15 15 Received cash for previous sale on account ( 120 units on lo/Ti . Paid Employees with cash , Grass - $2, 1010 . Federal and State withholdings , 15 %{ and }`, respective !" FICA 7. 65%^_ Employer payroll taxes include FUTA _.``. SUITA - 5. 4{` FILA match - 7.658`.` Purchased 350 units of inventory on account , $3. 50 Paid cash to ship the inventory , 5350 .` 20 Sold 2 20 products to a customer on account .* 20 20 Paid shipping costs on the above sale with cash , $1 10 28 Paid Office Supply Store ( 10121 - 5950 Sold IN` products to a customer for cash . Sold 51] products to a customer on account .* Paid shipping costs on the share sales with cash , $75 Paid employees with cash, Gross - $2. 1010 . Federal and State withholdings , 15%{ and }` , respectively* FILA T. G^'`_ Employer payroll taxes include FUTA _.```. SUITA - 5. 4^`. FICA match - 7. 6586 .CHART OF ACCOUNTS 100 | Cash 270 |Notes Payable . - Long-Term 105 |Accounts Receivable 275 | Mortgage Payable 106 | Allowance for Bad Debts . Account 280 | Bonds Payable 110 | Notes Receivable 281 Premium on Bonds Payable 1Is |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 i | Machinery & Equipment 401 Service Allowance 161 Accumulated Depreciation - M & E 402 Service Discount 165 |Furniture & Fixtures 405 Sales Revenue 166 Accumulated Depreciation F &I 406 Sales Return or Allowance 170 Land Improvement: 407 Sales Discount 171 Accumulated Depreciation - Land Imp 410 Interest Revenue 200 Accounts Payable 125 Other Revenue 205 | Salaries Payable 500 Cost of Goods Sold 210 | Other Accrued Expense: 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