Bowling Corporation had the following transactions occur during February: a. Bowling purchased $450,000 in inventory on credit.

b. Bowling received $13,000 in cash from customers for subscriptions that will not begin until the following month.

c. Bowling signed a note from Midwest Bank for $67,000.

d. Bowling sold all the inventory purchased in (a) above for $700,000 on account.

e. Bowling paid employees $120,000 for services performed during January.

f. Bowling purchased land for $56,000 in cash.

g. Bowling received $650,000 in cash from customers paying off January's accounts receivable.

h. Bowling paid dividends to stockholders in the amount of $4,000.

i. Bowling owes its employees $123,000 for work performed during February but not yet paid.

j. Bowling paid $300,000 on its accounts payable.

k. Bowling paid taxes in cash of $45,000.

Required: i. Prepare journal entries for the above transactions.

ii. Complete the T-accounts below. Numbers already under the accounts represent the prior balance in that account.

Figure 4.29 Opening T account Balances

iii. Prepare a trial balance for February.

Transcribed Image Text:

Cash Accounts Receivable 500,000 650,000 Unearned Revenue Salary Payable 120,000 0 Retained Earnings 220,000 Tax Expense 0 Inventory 0 Dividends 0 Note Payable Sales Revenue Cost of Goods Sold 0 o Land 22,000 430,000 Accounts Payable 100,000 Capital Stock Salary Expense 0 302,000 Cash Accounts Receivable 500,000 650,000 Unearned Revenue Salary Payable 120,000 0 Retained Earnings 220,000 Tax Expense 0 Inventory 0 Dividends 0 Note Payable Sales Revenue Cost of Goods Sold 0 o Land 22,000 430,000 Accounts Payable 100,000 Capital Stock Salary Expense 0 302,000

Answer rating: 100% (QA)

Chapter 4 Problem 7 Bowling Corporation General Journal For the Month of February Transaction Partic... View the full answer