Concept explainers
a.
Introduction: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. It helps to track the transactions in chronological order as well as to maintain the records too.
To prepare:
b.
Introduction: Ledger accounts are used in accounting to record various journal transactions in their particular accounts. Each and every ledger contains the opening balance, closing balance, and transactions of the year either on the credit side or on the debit side.
To prepare: Ledger accounts for the transactions provided.
c.
Introduction: The
To prepare: The trial balance is on April 30, 2020.
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EBK ACCOUNTING PRINCIPLES
- Getting ready for the upcoming holiday season is traditionally a busy time for greeting card com-panies, and it was no exception for Kate. The following transactions occurred during the month of October: 1. Hired an assistant at an hourly rate of $10 per hour to help with some of the computer layouts and administrative chores. 2. Supplements her business by teaching a class to aspiring card designers. She charges and receives a total of $450. 3. Delivers greeting cards to several new customers. She bills them a total of $3,500. 4. Pays a utility bill in the amount of $250 that she determines is the business portion of her utility bill. 5. Receives an advance deposit of $500 for a new set of cards she is designing for a new customer. 6. Pays her assistant $200 for the work done this month. 7. Determines that the assistant has worked 10 additional hours this month that have not yet been paid. 8. Ordered and receives additional supplies in the amount of $1,000. These were paid for during…arrow_forwardGetting ready for the upcoming holiday season is traditionally a busy time for greeting card com-panies, and it was no exception for Kate. The following transactions occurred during the month of October: 1. Hired an assistant at an hourly rate of $10 per hour to help with some of the computer layouts and administrative chores. 2. Supplements her business by teaching a class to aspiring card designers. She charges and receives a total of $450. 3. Delivers greeting cards to several new customers. She bills them a total of $1,500. 4. Pays a utility bill in the amount of $250 that she determines is the business portion of her utility bill. 5. Receives an advance deposit of $500 for a new set of cards she is designing for a new customer. 6. Pays her assistant $200 for the work done this month. 7. Determines that the assistant has worked 10 additional hours this month that have not yet been paid. 8. Ordered and receives additional supplies in the amount of $1,000. These were paid for during…arrow_forwardes The following transactions took place at the Cook Employment Agency during November 20X1. DATE TRANSACTIONS Nov. 5 Performed services for Job Search, Inc., for $31,000; received $14,500 in cash and the client promised to pay the balance in 60 days. 18 Purchased a graphing calculator for $380 and some supplies for $530 from Office Supply; issued Check 1008 for the total. 23 Received Invoice 1602 for $1,650 from Automotive Technicians Repair for repairs to the firm's automobile; issued Check 1009 for half the amount and arranged to pay the other half in 30 days. Prepare journal entries for the above transactions. View transaction list Journal entry worksheet < 1 2 Purchased a graphing calculator for $380 and some supplies for $530 from Office Supply; issued Check 1008 for the total. Date Nov 18, 20X1 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journalarrow_forward
- Following are some transactions and events of Business Solutions. Feb. 26 The company paid cash to Lyn Addie for eight days' work at $130 per day. Mar. 25 The company sold merchandise with a $2,200 cost for $2,900 on credit to Wildcat Services, invoice dated March 25. Required:1. Assume that Lyn Addie is an unmarried employee. Her $1,040 of wages have deductions for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $104. Compute her net pay for the eight days' work paid on February 26. (Round your answer to 2 decimal places. Do not round intermediate calculations.)2. Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part 1. (Round your answers to 2 decimal places. Do not round intermediate calculations.)3. Record the journal entry to reflect the (employer) payroll tax expenses for the February 26 payroll payment. Assume Lyn Addie has not met earnings limits…arrow_forwardFollowing are some transactions and events of Business Solutions. February 26 The company paid cash to Lyn Addie for eight days' work at $120 per day. March 25 The company sold merchandise with a $2,100 cost for $3,300 on credit to Wildcat Services, invoice dated March 25. Required: 1. Assume that Lyn Addie is an unmarried employee. Her $960 of wages have deductions for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $96. Compute her net pay for the eight days' work paid on February 26. 2. Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part 1. 3. Record the journal entry to reflect the (employer) payroll tax expenses for the February 26 payroll payment. Assume Lyn Addie has not met earnings limits for FUTA and SUTA (the FUTA rate is 0.6% and the SUTA rate is 5.4% for the company). 4. Record the entries for the merchandise sold on March 25 if a 4% sales tax rate applies.…arrow_forwardHome Office collected 100,000 from Branch’s customers on account. Requirements:a. Prepare the journal entries for both the Home Office and Branch books based on theabove transactions.arrow_forward
- It is the last day of the month and fiscal year, your manager asks you to create an invoice for $10,000 (debiting Accounts Receivable and Crediting Sales) and send it to a specified customer. Normally invoices are sent to customers when products have been shipped or the service has been finished. You manager tells you that we will be shipping equipment and performing the setup services for this customer next month (as early as next week). How would the company’s financial statements (and the users of the financial statements) be affected if you record this entry?arrow_forwardBridgette Keyes is a self-employed licenced dentist. She personally put $10,000 in her firm. Create an entry in the general journal to record this transaction.arrow_forwardOn March 1, a designer received a check for $7,500 from a customer for services to be provided after the customer chooses a color scheme for the first floor of her house. On July 31, the designer completed the design work for this customer. Prepare the July 31 journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.arrow_forward
- Joanne is part of the accounts payable team at a local furniture store, responsible for recording invoices received by the business and payments made by the business. The furniture store receives an invoice for internet usage for the amount of $450. The invoice states that payment is due in 30 days, therefore Joanne records the transaction accordingly and sets a calendar reminder to pay on the due date. Based on this information, the journal entry in the furniture store's accounting system would include:arrow_forwardMr X enrolls in a 12-month customer service assistance program for a computer software from CYBER COMPANY costing P1,200 per month on August 1, 20x8. Given that the computer assistance occurs evenly throughout the year, CYBER COMPANY uses the “proportion of time” as its measure for membership revenue, what is the amount of sales revenue to be recognized on December 31?arrow_forwardPrepare the following journal entry, all transactions that occurred in January: The Corporation purchased a Delivery Van for customer deliveries. The Delivery Van cost $21,400. A down payment of cash in the amount of $5,000 was paid to the Car Dealership, and a promissory note was signed for the remaining amount owed.arrow_forward
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