The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as...
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The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1. Debit Credit Cash $5,170 Accounts receivable 16,020 Allowance for doubtful accounts $2,370 Inventory 22,350 Accounts payable 7,865 Common stock 21,500 Retained earnings 11,805 Totals $43,540 $43,540 Transactions for Year 2 1. LGS acquired an additional $11,100 cash from the issue of common stock. 2. LGS purchased $59,900 of inventory on account. 3. LGS sold inventory that cost $60,600 for $96,800. Sales were made on account. 4. The company wrote off $1,190 of uncollectible accounts. 5. On September 1, LGS loaned $7,500 to Eden Company The note had an 7 percent interest rate and a one-year term. 6. LGS paid $15,040 cash for operating expenses. 7. The company collected $87,560 cash from accounts receivable. 8. A cash payment of $45,900 was paid on accounts payable. 9. The company paid a $4,500 cash dividend to the stockholders. 10. Accepted credit cards for sales amounting to $3,100. The cost of goods sold was $1,800. The credit card company charges a 5 percent service charge. The cash has not been received. 11. Uncollectible accounts are estimated to be 3.5 percent of sales on account. 12. Recorded the accrued interest at December 31, Year 2. Required a. Record the given transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar.) The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1. Debit Credit Cash $5,170 Accounts receivable 16,020 Allowance for doubtful accounts $2,370 Inventory 22,350 Accounts payable 7,865 Common stock 21,500 Retained earnings 11,805 Totals $43,540 $43,540 Transactions for Year 2 1. LGS acquired an additional $11,100 cash from the issue of common stock. 2. LGS purchased $59,900 of inventory on account. 3. LGS sold inventory that cost $60,600 for $96,800. Sales were made on account. 4. The company wrote off $1,190 of uncollectible accounts. 5. On September 1, LGS loaned $7,500 to Eden Company The note had an 7 percent interest rate and a one-year term. 6. LGS paid $15,040 cash for operating expenses. 7. The company collected $87,560 cash from accounts receivable. 8. A cash payment of $45,900 was paid on accounts payable. 9. The company paid a $4,500 cash dividend to the stockholders. 10. Accepted credit cards for sales amounting to $3,100. The cost of goods sold was $1,800. The credit card company charges a 5 percent service charge. The cash has not been received. 11. Uncollectible accounts are estimated to be 3.5 percent of sales on account. 12. Recorded the accrued interest at December 31, Year 2. Required a. Record the given transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar.)
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Answer rating: 100% (QA)
1 Common Stock Issuance LGS acquired 11100 cash from the issue of common stock Journal Entry Cash debit 11100 Common Stock credit 11100 Explanation Cash increases debit as the company receives cash fr... View the full answer
Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
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