Recording Journal Entries
Sysco, formed in 1969, is North America’s largest marketer and distributor of food service products, serving approximately 400,000 restaurants, hotels, schools, hospitals, and other institutions. The following summarized transactions are typical of those that occurred in a recent year (dollars are in thousands).
a. Purchased plant and equipment for $515 in cash.
b. Borrowed $758 from a bank, signing a short-term note.
c. Provided $37,522 in service to customers during the year, with $27,250 on account and the rest received in cash.
d. Paid $4,300 cash on accounts payable.
e. Purchased $30,449 inventory on account.
f. Paid payroll, $3,500 during the year.
g. Received $37,410 on account paid by customers.
h. Purchased and used fuel of $750 in delivery vehicles during the year (paid for in cash).
i. Declared and paid $497 in dividends for the year.
j. Incurred $68 in utility usage during the year; paid $55 in cash and owed the rest on account.
Required:
For each of the transactions, prepare journal entries. Determine whether the accounting equation remains in balance and debits equal credits after each entry.