Please do the following accounting entries: (1) Receive 50,000 in exchange for common stock. (2) Borrow 10,000
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Question:
(1) | Receive €50,000 in exchange for common stock. |
(2) | Borrow €10,000 from bank. |
(3) | Purchase €2,000 of supplies inventory on credit. |
(4) | Receive €15,000 cash from customers for services provided. |
(5) | Pay €2,000 cash to supplier in transaction 3. |
(6) | Receive order for future services with €3,500 advance payment. |
(7) | Pay €5,000 cash dividend to shareholders. |
(8) | Pay employees €6,000 cash for compensation earned. |
(9) | Pay €500 cash for interest on loan in transaction 2. |
a. Prepare journal entries for each of the transaction (1) through (9).
(1) | AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | €Answer | |
AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | €Answer | ||
(2) | AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | |
AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | ||
(3) | AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | |
AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | ||
(4) | AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | |
AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | ||
(5) | AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | |
AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | ||
(6) | AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | |
AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | ||
(7) | AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | |
AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | ||
(8) | AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | |
AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | ||
(9) | AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | |
AnswerUnearned RevenueInterest ExpenseCashAccounts PayableCommon StockRetained EarningsNotes PayableRevenueWages ExpenseInventory | Answer | ||
b. Set up T-accounts for each of the accounts used in part a. and post the journal entries to the appropriate line in the correct T-accounts. (The T-accounts will not have opening balances.)
After all transactions are recorded, compute the balance for each account in the appropriate column.
Cash (A) | |||
---|---|---|---|
(1) | Answer | Answer | |
(2) | Answer | Answer | |
(3) | Answer | Answer | |
(4) | Answer | Answer | |
(5) | Answer | Answer | |
(6) | Answer | Answer | |
(7) | Answer | Answer | |
(8) | Answer | Answer | |
(9) | Answer | Answer | |
Bal | Answer | Answer |
Common Stock (SE) | |||
---|---|---|---|
(1) | Answer | Answer | |
(2) | Answer | Answer | |
(3) | Answer | Answer | |
(4) | Answer | Answer | |
(5) | Answer | Answer | |
(6) | Answer | Answer | |
(7) | Answer | Answer | |
(8) | Answer | Answer | |
(9) | Answer | Answer | |
Bal | Answer | Answer |
Inventory (A) | |||
---|---|---|---|
(1) | Answer | Answer | |
(2) | Answer | Answer | |
(3) | Answer | Answer | |
(4) | Answer | Answer | |
(5) | Answer | Answer | |
(6) | Answer | Answer | |
(7) | Answer | Answer | |
(8) | Answer | Answer | |
(9) | Answer | Answer | |
Bal | Answer | Answer |
Retained Earnings (SE) | |||
---|---|---|---|
(1) | Answer | Answer | |
(2) | Answer | Answer | |
(3) | Answer | Answer | |
(4) | Answer | Answer | |
(5) | Answer | Answer | |
(6) | Answer | Answer | |
(7) | Answer | Answer | |
(8) | Answer | Answer | |
(9) | Answer | Answer | |
Bal | Answer | Answer |
Accounts Payable (L) | |||
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(1) | Answer | Answer | |
(2) | Answer | Answer | |
(3) | Answer | Answer | |
(4) | Answer | Answer | |
(5) | Answer | Answer | |
(6) | Answer | Answer | |
(7) | Answer | Answer | |
(8) | Answer | Answer | |
(9) | Answer | Answer | |
Bal | Answer | Answer |
Revenue (R) | |||
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(1) | Answer | Answer | |
(2) | Answer | Answer | |
(3) | Answer | Answer | |
(4) | Answer | Answer | |
(5) | Answer | Answer | |
(6) | Answer | Answer | |
(7) | Answer | Answer | |
(8) | Answer | Answer | |
(9) | Answer | Answer | |
Bal | Answer | Answer |
Unearned Revenue (L) | |||
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(1) | Answer | Answer | |
(2) | Answer | Answer | |
(3) | Answer | Answer | |
(4) | Answer | Answer | |
(5) | Answer | Answer | |
(6) | Answer | Answer | |
(7) | Answer | Answer | |
(8) | Answer | Answer | |
(9) | Answer | Answer | |
Bal | Answer | Answer |
Wages Expense (E) | |||
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(1) | Answer | Answer | |
(2) | Answer | Answer | |
(3) | Answer | Answer | |
(4) | Answer | Answer | |
(5) | Answer | Answer | |
(6) | Answer | Answer | |
(7) | Answer | Answer | |
(8) | Answer | Answer | |
(9) | Answer | Answer | |
Bal | Answer | Answer |
Notes Payable (L) | |||
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(1) | Answer | Answer | |
(2) | Answer | Answer | |
(3) | Answer | Answer | |
(4) | Answer | Answer | |
(5) | Answer | Answer | |
(6) | Answer | Answer | |
(7) | Answer | Answer | |
(8) | Answer | Answer | |
(9) | Answer | Answer | |
Bal | Answer | Answer |
Interest Expense (E) | |||
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(1) | Answer | Answer | |
(2) | Answer | Answer | |
(3) | Answer | Answer | |
(4) | Answer | Answer | |
(5) | Answer | Answer | |
(6) | Answer | Answer | |
(7) | Answer | Answer | |
(8) | Answer | Answer | |
(9) | Answer | Answer | |
Bal | Answer | Answer |
Feedback
In journal entries, debits increase assets and expenses and decrease liabilities, equity and revenues. Credits increase liabilities, equity and revenues and decrease assets and expenses. For each entry, the debits must equal the credits.
Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
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