Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 4, Problem 4.7E
Preparing
| January 10: | The owners of CC&C invested $200,000 (the par value of the stock) and acquired 20,000 shares of common stock. |
| March 15: | CC&C purchased equipment in the amount of $48,000 on credit account with the vendor. |
| April 12: | CC&C purchased supplies in the amount of $24,000 and paid cash. |
| May 31: | CC&C collected $82,000 in sales revenue for the month, all of which was paid in cash. Ignore Cost of Goods Sold. |
| June 15: | CC&C paid employees $22,000 in cash for wages. |
| July 31: | CC&C purchased supplies in the amount of $16,000 on credit account with the supplier. |
| September 30: | CC&C paid the balance due to the equipment vendor for the purchase made on March 15. |
| November 10: | CC&C paid the balance due to the supplier for the purchase made on July 31. |
| November 30: | CC&C recorded sales revenue in the amount of $216,000, half on credit and the other half paid in cash. Ignore Cost of Goods Sold. |
| December 20: | The customers who owed CC&C for the November 30 sales paid their balances in full with cash. |
CC&C uses the following chart of accounts:
| Assets |
| 100 Cash 101 102 Supplies 111 Equipment |
| Liabilities |
| 200 Accounts Payable |
| 300 Common Stock |
| Revenues |
| 400 Sales Revenue |
| Expenses |
| 503 Wage Expense |
Prepare the journal entries in the general journal format for CC&C’s transactions using appropriate account numbers. Assume the journal entries are posted to the ledger.
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Chapter 4 Solutions
Intermediate Accounting
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