Cullumber Company started business on January 1, 2024. Some of the events that occurred in its...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cullumber Company started business on January 1, 2024. Some of the events that occurred in its first year of operations follow: Transactions 1. Equipment that cost $182.000 was purchased on February 1 for $49.100 cash plus a two-year, 4% note with a principal amount of $132.900. 2. During the year, inventory costing $157.120 was purchased, all on account. 3. An insurance policy was purchased on March 31 for $2,652. The insurance policy was for one year of coverage that began on April 1, 2024. 4. Sales to customers totalled $279,870. Of these, $63.830 were cash sales 5. Payments to suppliers for inventory that had been purchased earlier totalled $78,560. 6 Collections from customers on account during the year totalled $176,760. 7. On January 30, customers paid $13.290 in advance payments for goods that will be delivered later. 8. Wages totalling $53,160 were paid to employees during the year. 9. The board of directors declared dividends of $8,860 in December 2024, to be paid in January 2025. Adjusting items 10. A physical count at year end revealed $35,440 of unsold inventory still on hand. 11. It was determined that 30% of the goods that were paid for in advance (in item 7) had been delivered to the customers by the end of the year. 12. Recorded the insurance expense for the year. 13. The equipment that was purchased (in item 1) on February 1, 2024, is to be depreciated using the straight-line method, with an estimated useful life of 20 years and an estimated residual value of $50,000. 14. Recorded the interest expense on the note payable for the year. 15. In addition to the wages that were paid during the year, wages of $5.316 remained unpaid at the end of the year. Prepare journal entries for each of the above transactions and adjusting items. List all debit entries before credit entries Credit account tities are automatically indented when the amount is entered Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the counts) No Account Titles and Explanation Debit Credit Cullumber Company started business on January 1, 2024. Some of the events that occurred in its first year of operations follow: Transactions 1. Equipment that cost $182.000 was purchased on February 1 for $49.100 cash plus a two-year, 4% note with a principal amount of $132.900. 2. During the year, inventory costing $157.120 was purchased, all on account. 3. An insurance policy was purchased on March 31 for $2,652. The insurance policy was for one year of coverage that began on April 1, 2024. 4. Sales to customers totalled $279,870. Of these, $63.830 were cash sales 5. Payments to suppliers for inventory that had been purchased earlier totalled $78,560. 6 Collections from customers on account during the year totalled $176,760. 7. On January 30, customers paid $13.290 in advance payments for goods that will be delivered later. 8. Wages totalling $53,160 were paid to employees during the year. 9. The board of directors declared dividends of $8,860 in December 2024, to be paid in January 2025. Adjusting items 10. A physical count at year end revealed $35,440 of unsold inventory still on hand. 11. It was determined that 30% of the goods that were paid for in advance (in item 7) had been delivered to the customers by the end of the year. 12. Recorded the insurance expense for the year. 13. The equipment that was purchased (in item 1) on February 1, 2024, is to be depreciated using the straight-line method, with an estimated useful life of 20 years and an estimated residual value of $50,000. 14. Recorded the interest expense on the note payable for the year. 15. In addition to the wages that were paid during the year, wages of $5.316 remained unpaid at the end of the year. Prepare journal entries for each of the above transactions and adjusting items. List all debit entries before credit entries Credit account tities are automatically indented when the amount is entered Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the counts) No Account Titles and Explanation Debit Credit
Expert Answer:
Related Book For
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley
Posted Date:
Students also viewed these accounting questions
-
Paratha Company started business on January 1, 2024. Some of the events that occurred in its first year of operations follow: Transactions 1. Equipment that cost $200,000 was purchased on February 1...
-
Chapati Company started business on January 1, 2020. Some of the events that occurred in its first year of operations follow: Transactions 1. An insurance policy was purchased on February 28 for...
-
QUESTION ONE Matrix X sells computer hardware and software components as well as other ancillary items to customers all over South Africa. Matrix X also provides installation of hardware and software...
-
Graph function in Problem 4x 20 if0s x 20 2x + 60 -x 360 if x 100 STK h(x) = if 20 < x 100
-
In terms of hydrogen ion concentration, how much more acidic is a solution with a pH of 4.0 than a solution with a pH of 5.5? Round your answer to the nearest tenth. Show Recall that pH, p(x), is...
-
Why are information security and privacy important considerations in the design, development, and maintenance of an HRIS?
-
The accountant, Ryan Mailling, of Double-D Retailing Ltd. (DRL), a Canadian-controlled private corporation, has requested your assistance with respect to the calculation of the company's Part I tax...
-
Determine the roots of the following polynomials using MATLAB: P1(x) = x + 8x6 + 5x5 + 4x4 + 3x3 + 2x+x+1 P3(x)=x5-13x + 10x3 + 12x + 8x - 15
-
1. Prepaid Rent 2. Interest Receivable 3. Accumulated Depreciation, Truck 4. Cash 5. Building 6. Land, used in business 7. Repairs Expenses 8. Office Supplies 9. Current Portion of Long-term Debt 10....
-
Provide mechanical and molecular definitions of work and heat minor effect on the principles being illustrated). Assume compression ratio \(=9.0: 1\);...
-
Starbucks has said that it wants people who have the ability to create genuine moments of connection with customers, a willingness to learn, and an openness to getting the job done while helping...
-
Confirm that item (iv) in P4.2 is equal to \(\left(b_{1}-b_{2} ight)\), where \(b=h-T_{0} s\), the specific steady-flow availability function. (Note that, since \(T_{2}=T_{0}\) and \(p_{2}=p_{0}\),...
-
A linear second-order continuous time system is described by the following set of differential equations. \[ \begin{aligned} \dot{x}_{1}(t) & =-2 x_{1}(t)+4 x_{2}(t) \\ \dot{x}_{2}(t) & =-2...
-
The Bottoccellis, an Italian Mafia family in Chicago, are involved in a number of criminal enterprises. As part of tradition, it is generally understood that all relatives have an obligation to help...
-
Select a company described in the wall street journal, fortune, Forbes, or another reputable business application. Visit the companys web site to find additional information about that company and...
-
Selected condensed data taken from a recent statement of financial position of Morino Ltd. are as follows. MORINO LTD. Statement of Financial Position (partial) Other current assets...
-
The topological optimization is discussed in chapter 1. Here, we will consider a topological optimization problem for a chemical process plant. The layout of the chemical process plant has been shown...
-
For installation and operation of a pipeline for an incompressible fluid, the total cost (in dollars per year) can be represented as follows: \[C=C_{1} D^{1.5} L+C_{2} m \Delta p / ho\] where...
-
An adiabatic two-stage compressor is used to compress a gas, which is cooled to the inlet gas temperature between the stages, the theoretical work can be expressed by the following equation:...
Study smarter with the SolutionInn App