Concept explainers
Exercise 4.20
LO 6, 7
Transaction analysis using T-accounts This exercise provides practice in understanding the operation of T-accounts and transaction analysis. For each situation, you must solve for a missing amount. Use a T-account for the balance sheet account, show in a horizontal model, or prepare
Example:
Accounts Payable had a balance of $6.000 at the beginning of the month and $5,400 at the end of the month. During the
month, payments to suppliers amounted to $16,000. Calculate the purchases on account during the month.
Solution:
Accounts Payable | |||||
Beginning | Dr. Accounts | Dr. Inventory | 15.400 | ||
balance | 6,000 | Payable .... 16,000 | Cr. Accounts | ||
Payment 16,000 | Purchase | ?=15,400 | Cr. Cash .... |
16,000
Accounts Receivable had a balance of $8,100 at the beginning of the month and $3,300 at the end of the month. Credit sales totaled $45,000 during the month. Calculate the cash collected from customers during the month, assuming that all sales were made on account.- The Supplies account had a balance of $17,500 at the beginning of the month and $23,300 at the end of the month. The cost of supplies used during the month was $76,100. Calculate the cost of supplies purchased during the month.
- Wages Payable had a balance of $15,200 at the beginning of the month. During the month, $62,000 of wages were paid to employees. Wages Expense accrued during the month totaled $78,000. Calculate the balance of Wages Payable at the end of the month.
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Chapter 4 Solutions
Accounting: What the Numbers Mean
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- Comprehensive Problem 3Part 3: Note: You must complete parts 1 and 2 before completing part 3 of this comprehensive problem. Based on the bank reconciliation prepared in (2), journalize the entry or entries to be made by Kornett Company. Use the Miscellaneous Administrative Expense account to record bank service charges. If an amount box does not require an entry, leave it blank. Date Description Debit Credit Dec. 31arrow_forward1-What is the journal entry for recording credit sales? a. Sales Dr. and Accounts Receivable Cr b. Accounts Receivable Dr. and Sales Cr c. Cash Dr. and Sales Cr d. Sales Dr. and Accounts Payable Crarrow_forwardSaved Help Save In 2021, the internal auditors of Blooper Inc. discovered that goods costing $12 million that were shipped f.o.b. shipping point in December of 2020 were in transit on December 31. The goods were recorded as a purchase in December of 2020 but were not included in the 2020 year-end inventory. Prepare the journal entry needed in 2021 to correct the error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet Record the necessary entry to correct the error. Note: Enter debits before credits. Transaction General Journal Debit Creditarrow_forward
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