Bowling Corporation had the following transactions occur during February: a. Bowling purchased $450,000 in inventory on credit.
Question:
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.
Accounting Principles
ISBN: 978-1118342190
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso