Acct 2
Pablo Management has five part-time employees, each of whom earns $250 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the five employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4 New Year's Day. (January 1) was an unpaid holiday. 1. Prepare the year-end adjusting entry for wages expenses 2. Prepare the journal entry to record payment of the employees' wages on Friday, January 4.
1. December 31 Wages expense (debit) 1250 Wages Payable (credit) 1250 2. January 4 Wages expense (debit) 3750 wages payable (debit) 1250 Cash (credit) 5000
Adjusting Entries: a. wages of 8000 are earned by workers but not paid as of december 31, 2017 b. depreciation on the company's equipment for 2017 is 18000 c. The office supplies account had a 240 debit balance on December 31, 2016. During 2017, 5200 of office supplies are purchased. A physical count of supplies at December 31, 2017 shows 440 of supplies available d. the prepaid insurance account had a 4000 balance on december 31, 2016. An analysis of insurance policies shows 1200 of unexpired insurance benefits remain at december 31, 2017. e. the company had earned (but not recorded) 1050 of interest from investments in CDs for the year ended december 31, 2017. The interest revenue will be received on January 10, 2018. f. The company has a bank loan and has incurred (but not recorded) interest expense of 2500 for the year ended december 31, 2017. the company must pay the interest on January 2, 2018
a. Wages expense 8000 wages payable 8000 b. depreciation expense - Equipment 18000 accumulated depreciation - equipment 18000 c. Supplies expense 5000 supplies 5000 d. insurance expense 2800 prepaid insurance 2800 e. interest receivable 1050 interest revenue 1050 f. interest expense 2500 interest payable 2500
prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Apr. 1 sold merchandise for 3000, with credit terms n/30; invoice dated april 1, The cost of the merchandise is 1800 Apr 4 the customer in the april 1 sale returned 300 of merchandise for full credit. the merchandise, which had cost 180, is returned to inventory Apr 8 sold merchandise for 1000, with credit terms of 1/10, n/30; invoice dated april 8. cost of the merchandise is 700 apr 11 received payment for the amount due from the april 1 sale less the return on april 4
apr 1 Accounts receivable 3000 sales 3000 apr 1 cost of goods sold 1800 merchandise inventory 1800 apr 4 sales returns and allowances 300 accounts receivable 300 apr 4 merchandise inventory 180 cost of goods sold 180 Apr 8 accounts receivable 1000 sales 1000 apr 8 cost of goods sold 700 merchandise inventory 700 apr 11 cash 2700 accounts receivable 2700
cash
current asset
office supplies
current asset
Interest Receivable
current assets
prepaid insurance
current assets
prepaid rent
current assets
store supplies
current assets
Unearned Service Revenue
current liabilities
accounts payable
current liabilities
current portion of long-term note payable
current liabilities
taxes payable
current liabilities
common stock
equity
Long-term investment in stock
long-term investments
notes payable (due in 3 years)
long-term liabilities
Depreciation expense- building
not on balance sheet
repairs expense
not on balance sheet
Prepare journal entries to record each of the following transactions of a merchandising company. the company uses a perpetual inventory system and the gross method. Nov. 5: purchased 600 units fo product at a cost of $10 per unit. Terms of the sale are 2/10, n/60; the invoice is dated number 5. Nov. 7: returned 25 defective units fro the november 5 purchase and received full credit Nov. 15: paid the amount due from the november 5 purchase, less the return on november 7
nov 5. merchandise inventory 6000 acconts payable 6000 nov 7. accounts payable 250 merchandise inventory 250 nov 15. accounts payable 5750 merchandise inventory 115 cash 5635
accumulated depreciation - trucks
plant assets
automobiles
plant assets
buildings
plant assets
land (used in operations)
plant assets
office equipment
plant assets
