Following are the transactions for Valdez Services.a. The company pald $2,000 cash for payment on a 6-month-old account payable for office supplies.b. The company pald $1,200 cash for the Just completed two-week salary of the receptionist.c. The company pald $39,000 cash for equipment purchased.d. The company pald $800 cash for this month's utilities.e. The owner (B. Valdez) withdrew $4,500 cash from the company for personal use.1. Prepare general journal entries for the above transactions of Valdez Services.Vlew transaction lletJournal entry worksheet4 523The company paid $2,000 cash for payment on a 6-month-old account payablefor office supplies.Note: Enter debits before credits.TransactionGeneral JournalDebitCredita.Record entryClear entryVlew general Journal2 Listed below are three reasons why a transaction would not result in an expense. Match each of the reasons to the transactlon Itproperly describes.ReasonTransactionThis transaction is a distribution of cash to the owner. Even though equity decreased, that decrease did not occurin the process of providing goods or services to customers.This transaction decreased cash in settlement of a previously existing liability (equity did not change). Suppliesexpense is recorded when assets are used, not necessarily when cash is paid.This transaction involves the purchase of an asset. The form of the company's assets changed, but total assetsdid not (and neither did equity). Following are transactions for Valdez Services, a company owned by Brina Valdez.a. Brina Valdez Invested $20,000 cash In the company.b. The company provided services to a client and Immediately recelved $900 cash.c. The company recelved $10,000 cash from a client In payment for services to be provided next year.d. The company recelved $3,500 cash from a client In partlal payment of accounts recelvable.e. The company borrowed $5,000 cash from the bank by signing a note payable.1. Prepare general journal entries for the above transactions of Valdez Services.Vlew transaction letJournal entry worksheet12 3 4 5Brina Valdez invested $20,000 cash in the company.Note: Enter debits before credits.TransactionGeneral JournalDebitCredita.Record entryClear entryVlew general Journal2 Listed below are four reasons why a transaction would not yleld a revenue. Match each of the reasons to the transaction It properlydescribes.ReasonTransactionThis transaction changed the form of an asset from a receivable to cash. Total assets were not increased(revenue was recognized when the services were originally provided).This transaction brought in cash (increased assets), and it also increased a liability by the same amount(represented by the signing of a note to repay the amount).This transaction brought in cash, but this is an owner investment.This transaction brought in cash, but it created a liability to provide services to the client in the next year.

General information - Journal entries are the first step of recording the transactions. For every…

Answered: Following are the transactions for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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b) Sofea Enterprise runs a retail business. All cash and cheque receipt and payment are recorded in the Cash Book. The following transactions occurred during the month of September 2021 and are yet to be recorded in the Cash Book: The debit balance in the Cash and Bank accounts are $2,000 and $17,000 respectively. 3/9 Transfer cash $1,000 into the bank account. 4/9 Purchased goods worth $3,600 by cheque. 5/9 Paid Jamilah & Co. $5,000 by cheque for purchase of goods. 6/9 The owner took $500 cash for his own use. 8/9 Paid the shop rental $3,000 by cheque. 10/9 Received a cheque from Ms. Angie amounting to $3,600 after deducting cash discount $400. 15/9 Cash sales of $3,200. 18/9 Issued $2,850 cheque to Seri Enterprise after deducting cash discount of 5%. 20/9 Received $5,000 cheque from Faiz Enterprise. 23/9 Cash sales banked the same day, $2,600. 28/9 Paid wages to shop assistant by cheque, $1,200. REQUIRED: Prepare a Three-column Cash Book, balancing it at 30 September 2021. Bring down…
J. Whitlock Co. had $1,000 of credit cards sales. The net cash receipts were deposited immediately into Whitlock's bank account less a 5% fee. The entry to record this sales transaction would include a debit to:
29
Record the Note: Any expenses less than $500 should be classified as Miscellaneous. 2/1 Paid rent, $2,000. 2/2 Made loan payments of $300 and $1,000. 2/3 Cash received from debtors (accounts receivable), $12,800. 2/4 Bought inventory worth $3,500 and paid cash. 2/5 Paid for payroll amounted to $1,500. 2/6 Purchased additional equipment for $10,000; paid $2,000 cash and the rest on 2/6 Cash sales recorded at $16,800 and $12,300 on credit sales. 2/8 Bought office supplies, $400. 2/9 Paid creditors, $3,000. 2/10 Mr. Adams decided to invest in the business and he contributed $35,000. 2/11 Joe Withdrew $2,000 from the business. 2/13 Cash sales for the week, $15,900. 2/13 Credit sales for the week, $11,700. 2/15 Purchased additional furniture on account, $3,000. 2/17 Payroll amounted to $1,500 was paid. 2/18 Purchased inventory worth $6,800 on account. 2/18 Paid creditors, $6,000. 2/19 Paid advertising expense, $1,200. 2/20 Sales recorded at $24,000; of which $15,000 were cash and the rest…
The following account balances come from the records of Ourso Company: Beginning Balance $2,800 Ending Balance $3,600 350 Accounts receivable Allowance for doubtful accounts 280 During the accounting period, Ourso recorded $14,000 of sales revenue on account. The company also wrote off a $150 account receivable. Required a. Determine the amount of cash collected from receivables. b. Determine the amount of uncollectible accounts expense recognized during the period. a Collections of accounts receivable b. Uncollectible accounts expense
Record the following transactions for the month of June 20X1 in the cash receipts journal. Total, prove, and rule the cash receipts journal as of June 30. June 4 Collected $1,150 from Tom Whitney, a credit customer on account. 9 Received a cash refund of $105 for damaged supplies. 10 Laurie Bradley, the owner, invested an additional $14,500 cash in the business. 21 Received a check from Scott White to pay his $2,300 promissory note plus interest of $127. 26 Received $2,000 for cash sales of plus sales tax of $122. There was a cash overage of $19. Date June 4, 20X1 June 9, 20X1 June 10, 20X1 June 21, 20X1 June 26, 20X1 June 30, 20X1 Description Tom Whitney Cash refund Investment Collect note Scott White Cash sales Totals CASH RECEIPTS JOURNAL Accounts Receivable Credit 1,150 14,500 2,300 Sales Tax Payable Credit $ 17,950 $ 105 122 227 Sales Credit Other Accounts Credit $ 1,859 Account Title Laurie Bradley, Capital Supplies Laurie Bradley, Capital Notes receivable Interest income 1,859…
ABC company are involved with the following transactions for 2021 from the books of the business. This company operates one bank account to reflect all cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevant documents and books as outlined in the requirements below. 1 Aug 3 Aug 5 Aug 7 Aug 10 Aug 10 Aug 11 Aug 12 Aug Started business with $150, 000 in the bank Bought supplies on credit from Right Way Manufacturers 24 Boxes Air Filter 96 Bottles fuel injector cleaner 48 Boxes Spark Plug 36 Boxes Brake Shoe 24 Boxes Disc Pads Provided services for cash less 10% discount 12 small motorbike engines 6 large motorbike engines (full service) 8 medium size motorbike engines (full service) Paid Rent by cheque Paid Wages by cheque Bought Fixtures from CT Limited paying by cash Provided services on credit to Auto Care. 24 small motorbike engines 8 large motor bike engines (partial service) 12 medium size motorbike engine (partial service)…
Record these transactions in general journal ledger: Dec 1: Purchased equipment costing $15,608 by taking out a 4-month installment note with First Bank. Dec 4: Accepted a sales return from Eastern for an item having an original gross sales price of $6,000. The original sale to Eastern occurred in November with terms 2/15, n/30. Dec 5: Specifically wrote off the receivable balance owed by Baker as uncollectible. Dec 7: Returned defective inventory with a gross cost of $4,000 back to Hunt Corp. Dec 14: Wilson returned an item originally purchased on Dec 12 with a gross sales price of $7,000. Dec 14: Returned inventory with a gross cost of $2,000 back to Nelson Industries. Dec 18: Bought office supplies on account for $9,000 from Staples Inc. (open a new Accounts Payable in the subsidiary ledger--Vendor # 210-30). Invoice # is OM1218. Staples Inc.’s terms are n/30 Dec 19: Received the December utilities bill for the amount of $15,000. The bill will be paid in January of next year.…
following transactions for 2021 from the books of the business. This company operates one bank account to reflect all cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevant documents and books as outlined in the requirements below. 4/9 1 Aug Started business with $150, 000 in the bank 3 Aug Bought supplies on credit from Right Way Manufacturers 24 Boxes Air Filter $720.00 per box 96 Bottles fuel injector cleaner $200.00 per bottle 48 Boxes Spark Plug $300.00 per box 36 Boxes Brake Shoe $580.00 per box 24 Boxes Disc Pads $400.00 per box 5 Aug Provided services for cash less 10% discount 12 small motorbike engines $350.00 per engine 6 large motorbike engines (full service) $950.00 per engine 8 medium size motorbike engines (full service) $800.00 per engine 7 Aug Paid Rent by cheque $5,000.00 10 Aug Paid Wages by cheque $8,000.00 10 Aug Bought Fixtures from CT Limited $3,500.00 paying by cash 11 Aug Provided services on credit to…
000 Debit Cash $250; credit Accounts Payable $250. Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the establishment of the fund on September 1 is: Debit Petty Cash $250; credit Cash $250. Debit Petty Cash $250; credit Accounts Payable $250. Debit Cash $250; credit Petty Cash $250. Debit Miscellaneous Expense $250; credit Cash $250.
Record each transaction in a journal entry. Explanations are not required.
The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: apr13 Wrote off account of Dean Sheppard, $8,450 may15 Received $500 as partial payment on the $7,100 account of Dan Pyle. Wrote off the remaining balance as uncollectible july27 Received $8,450 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. dec31 Wrote off the following accounts as uncollectible (record as one journal entry): 31. If necessary, record the year-end adjusting entry for uncollectible accounts.a. Journalize the transactions under the direct write-off method.b. Journalize the transactions under the allowance method. Shipway Company usesthe percent of credit sales method of estimating uncollectible accounts expense.Based on past history and industry averages, ¾% of credit sales are expected to beuncollectible. Shipway Company recorded $3,778,000 of…

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