Cintu is a large marketer and distributor of food service products serving restaurants, hotels, schools, hospitals, and other institutions. The following transactions are typical of those that occurred in a recent year, but the amounts are simplified. a. Borrowed $101,000 from a bank, signing a short-term note payable. b. Provided $106,300 in service to customers, with $100,100 on account and the rest received in cash. c. Purchased equipment for $146,000 in cash. d. Incurred and paid employee wages of $2,450. e. Received $430 on account from a customer. f. Incurred and paid $4,850 cash for travel costs during the year. g. Paid $9,100 cash on accounts payable. h. Incurred $24,300 in utility expenses during the year, of which $18,800 was paid in cash and the rest owed on account. Required: 1. For each of the above transactions, prepare accrual basis journal entries. 2. Calculate the company's preliminary net income.
Cintu is a large marketer and distributor of food service products serving restaurants, hotels, schools, hospitals, and other institutions. The following transactions are typical of those that occurred in a recent year, but the amounts are simplified. a. Borrowed $101,000 from a bank, signing a short-term note payable. b. Provided $106,300 in service to customers, with $100,100 on account and the rest received in cash. c. Purchased equipment for $146,000 in cash. d. Incurred and paid employee wages of $2,450. e. Received $430 on account from a customer. f. Incurred and paid $4,850 cash for travel costs during the year. g. Paid $9,100 cash on accounts payable. h. Incurred $24,300 in utility expenses during the year, of which $18,800 was paid in cash and the rest owed on account. Required: 1. For each of the above transactions, prepare accrual basis journal entries. 2. Calculate the company's preliminary net income.
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 13P
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![Cintu is a large marketer and distributor of food service products serving restaurants, hotels, schools, hospitals, and other institutions.
The following transactions are typical of those that occurred in a recent year, but the amounts are simplified.
a. Borrowed $101,000 from a bank, signing a short-term note payable.
b. Provided $106,300 in service to customers, with $100,100 on account and the rest received in cash.
c. Purchased equipment for $146,000 in cash.
d. Incurred and paid employee wages of $2,450.
e. Received $430 on account from a customer.
f. Incurred and paid $4,850 cash for travel costs during the year.
g. Paid $9,100 cash on accounts payable.
h. Incurred $24,300 in utility expenses during the year, of which $18,800 was paid in cash and the rest owed on account.
Required:
1. For each of the above transactions, prepare accrual basis journal entries.
2. Calculate the company's preliminary net income.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa413bcf-f4d4-4563-8c5c-bfbbe2a7d62c%2Ffc9bc2d5-732b-4044-8d79-074065d909e8%2Faa1su5k_processed.png&w=3840&q=75)
Transcribed Image Text:Cintu is a large marketer and distributor of food service products serving restaurants, hotels, schools, hospitals, and other institutions.
The following transactions are typical of those that occurred in a recent year, but the amounts are simplified.
a. Borrowed $101,000 from a bank, signing a short-term note payable.
b. Provided $106,300 in service to customers, with $100,100 on account and the rest received in cash.
c. Purchased equipment for $146,000 in cash.
d. Incurred and paid employee wages of $2,450.
e. Received $430 on account from a customer.
f. Incurred and paid $4,850 cash for travel costs during the year.
g. Paid $9,100 cash on accounts payable.
h. Incurred $24,300 in utility expenses during the year, of which $18,800 was paid in cash and the rest owed on account.
Required:
1. For each of the above transactions, prepare accrual basis journal entries.
2. Calculate the company's preliminary net income.
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