310 Practice (Journal Entries)

Paid $60,000 on account for the merchandise purchased in 3.

Account Payable $60,000 Cash $60,000

Paid $79,475 on account for the merchandise purchased in 3.

Account Payable $79,475 Cash $79,475

Credit sales for the month totaled $100,000. The cost of the goods sold was $60,000.

Account Receivable $100,000 Sales Revenue $100,000 Cost of Goods Sold $60,000 Inventory $60,000

Credit sales for the month totaled $187,000. The cost of the goods sold was $93,500.

Account Receivable $187,000 Sales Revenue $187,000 Cost of Goods Sold $93,500 Inventory $93,500

Issued 26,000 shares of non-par common stock in exchange for $260,000 in cash.

Cash $260,000 Common Stock $260,000

Issued 55,000 shares of common stock in exchange for $275,000 cash.

Cash $275,000 Common Stock $275,000

Collected $37,400 from customers on account.

Cash $37,400 Account Receivable $37,400

Collected $45,000 from customers on account.

Cash $45,000 Account Receivable $45,000

Recorded depreciation expense of $1,075 for the month on the office equipment.

Depreciation Exp. $1,075 Acc. Depreciation $1,075

Recorded depreciation expense of $800 for the month on the equipment.

Depreciation Expense $800 Accumulated Depreciation $800

Paid shareholders a cash dividend of $2,750.

Dividends $2,750 Cash $2,750

Purchased equipment at a cost of $32,000. $8,000 cash was paid and a notes payable to the seller was signed for the balance owed.

Equipment $32,000 Cash $8,000 Notes Payable $24,000

Purchased office equipment at a cost of $53,750. $21,500 was paid in cash and a note payable was signed for the balance owed.

Equipment $53,750 Cash $21,500 Note Payable $32,250

Purchased inventory on account at a cost of $110,000. The company uses the perpetual inventory system.

Inventory $110,000 Account Payable $110,000

Purchased inventory on account at a cost of $80,000. The company uses the perpetual inventory system.

Inventory $80,000 Account Payable $80,000

Paid $1,320 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021.

Prepaid Insurance $1,320 Cash $1,320

Paid $5,650 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.

Prepaid Insurance $5,650 Cash $5,650

Paid $2,250 in rent on the store building for the month of June.

Rent Expense $2,250 Cash $2,250