Prepare journal entries for the following transactions that took place during the year, 2021: a. Borrowed $50,000 cash on July 1, 2020, signing a two-year, 10% note payable. b. Purchased Land for $54,000 cash on July 1, 2020. c. Earned $50,000 in revenue, including $23,000 in cash and the rest on credit. d. Collected accounts receivable, $15,000. e. Paid wages to employees, $22,000. f. Purchased supplies of $4,500 on account. g. Paid accounts payable, $4,500. h. Recorded depreciation of $2,300 for the year. i. Recorded estimated bad debt expense of $500. j. Determined that only $1,500 of the supplies purchased in f. were on hand at the end of the year.
Prepare journal entries for the following transactions that took place during the year, 2021: a. Borrowed $50,000 cash on July 1, 2020, signing a two-year, 10% note payable. b. Purchased Land for $54,000 cash on July 1, 2020. c. Earned $50,000 in revenue, including $23,000 in cash and the rest on credit. d. Collected accounts receivable, $15,000. e. Paid wages to employees, $22,000. f. Purchased supplies of $4,500 on account. g. Paid accounts payable, $4,500. h. Recorded depreciation of $2,300 for the year. i. Recorded estimated bad debt expense of $500. j. Determined that only $1,500 of the supplies purchased in f. were on hand at the end of the year.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 2P: Notes Payable and Effective Interest On November 1,2019, Edwin Inc. borrowed cash and signed a...
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- Prepare
journal entries for the following transactions that took place during the year, 2021:
a. Borrowed $50,000 cash on July 1, 2020, signing a two-year, 10% note payable.
b. Purchased Land for $54,000 cash on July 1, 2020.
c. Earned $50,000 in revenue, including $23,000 in cash and the rest on credit.
d. Collected
e. Paid wages to employees, $22,000.
f. Purchased supplies of $4,500 on account.
g. Paid accounts payable, $4,500.
h. Recorded depreciation of $2,300 for the year.
i. Recorded estimated
j. Determined that only $1,500 of the supplies purchased in f. were on hand at the end of the year.
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