REQUIRED: 1. During 2021, the following transactions occurred. Prepare any necessary journal entries. For your own...

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REQUIRED: 1. During 2021, the following transactions occurred. Prepare any necessary journal entries. For your own purposes, you should set up T-accounts for the temporary accounts (revenues, expenses, and owner withdrawals) as needed. I also suggest keeping track of entries you think will require an adjusting entry at the end of the year. DO NOT PREPARE MONTHLY ADJUSTING AND CLOSING ENTRIES; wait until year-end to prepare these entries. Koors Auto does not use reversing entries. January 3 January 7 January 10 January 15 February 1 February 12 February 21 March 6 'March 10 March 15 March 25 April 1 April 10 May 1 Sold store equipment for $7,200. The equipment originally cost $8,000 and had a book value of $4,800. (Given this information, you should be able to derive the accumulated depreciation on the equipment, and determine the gain or loss on the sale.) Purchased inventory on account for $18,500. Koors Auto uses a periodic system of inventory control. Sold goods on account for $12,000. Made cash sales of $8,300. Paid salaries owed to employees at the end of 2020. Koors personally invested $6,000 into the business. Received $9,800 from customers for previous sales made on account. Paid $10,000 to vendors for previous purchases of inventory made on account. Purchased $15,000 of inventory on account. Sold goods for $16,800 on account. Made cash sales of $12,600. Credited customer accounts for $1,420 of merchandise returned. Received $21,400 from customers for sales made previously on account. Paid the $16,000 note and all interest accrued to date. Koors had borrowed the $16,000 on October 1, 2020. Interest accrued on the note at a rate of 10% annually. Paid the remaining amounts owed to vendors for all goods and services purchased on account. Borrowed $20,000 from the bank by issuing a 12-month note. Interest accrues on the note at a rate of 12% annually. Interest is to be paid when the note is due next year. 2 REQUIRED: 1. During 2021, the following transactions occurred. Prepare any necessary journal entries. For your own purposes, you should set up T-accounts for the temporary accounts (revenues, expenses, and owner withdrawals) as needed. I also suggest keeping track of entries you think will require an adjusting entry at the end of the year. DO NOT PREPARE MONTHLY ADJUSTING AND CLOSING ENTRIES; wait until year-end to prepare these entries. Koors Auto does not use reversing entries. January 3 January 7 January 10 January 15 February 1 February 12 February 21 March 6 'March 10 March 15 March 25 April 1 April 10 May 1 Sold store equipment for $7,200. The equipment originally cost $8,000 and had a book value of $4,800. (Given this information, you should be able to derive the accumulated depreciation on the equipment, and determine the gain or loss on the sale.) Purchased inventory on account for $18,500. Koors Auto uses a periodic system of inventory control. Sold goods on account for $12,000. Made cash sales of $8,300. Paid salaries owed to employees at the end of 2020. Koors personally invested $6,000 into the business. Received $9,800 from customers for previous sales made on account. Paid $10,000 to vendors for previous purchases of inventory made on account. Purchased $15,000 of inventory on account. Sold goods for $16,800 on account. Made cash sales of $12,600. Credited customer accounts for $1,420 of merchandise returned. Received $21,400 from customers for sales made previously on account. Paid the $16,000 note and all interest accrued to date. Koors had borrowed the $16,000 on October 1, 2020. Interest accrued on the note at a rate of 10% annually. Paid the remaining amounts owed to vendors for all goods and services purchased on account. Borrowed $20,000 from the bank by issuing a 12-month note. Interest accrues on the note at a rate of 12% annually. Interest is to be paid when the note is due next year. 2

Answer rating: 100% (QA)

TAccounts Inventory 17 18500 110 12000 36 15000 310 16800 315 1420cr Sales 110 12000 310 12600 Accou... View the full answer