Give journal entries for the following: On February 1, Your Company’s board authorized 250,000 shares and issued 12,200 shares of $1 par common stock for $170,800 cash. On February 1, Your Company received $142,500 as prepayment for 15 months of consulting services that will be provided evenly over the contract, beginning in October. On March 1, Your Company paid $36,000 in cash as prepayment for 1 year of rent on an office building, beginning in March. On May 1, Your Company’s board authorized 200,000 shares of $50 par, cumulative preferred stock with a 4% coupon rate. It issued 2,000 shares for $100,000 On June 1, Your Company purchased merchandise inventory costing $350,000 on credit, 2/10,n/30. Your Company paid for the inventory on day seven. Your Company repurchased 450 shares of its own common stock from an unhappy shareholder for $15 per share. Your Company sold $85,000 of its inventory for $150,000 on account, terms 2/10, net 30. (Several customers) On December 1, Your Company paid $4,000 for cleaning services for December. Your Company collected $95,000 of its accounts receivable. All of the customers received the discount. On December 31, Your Company recorded $8,000 of salary expense. The employees will be paid on January 15, 2023. Record the year-end entry to recognize service income relating to entry 2. Record the year-end entry to recognize rent expense relating to entry 3. Record the warranty expense. Your Company estimates that this expense will be 5 percent of its cost of goods sold. Record the bad debt expense. Your Company estimates that 3 percent of its credit sales will not be collected.
Give journal entries for the following: On February 1, Your Company’s board authorized 250,000 shares and issued 12,200 shares of $1 par common stock for $170,800 cash. On February 1, Your Company received $142,500 as prepayment for 15 months of consulting services that will be provided evenly over the contract, beginning in October. On March 1, Your Company paid $36,000 in cash as prepayment for 1 year of rent on an office building, beginning in March. On May 1, Your Company’s board authorized 200,000 shares of $50 par, cumulative preferred stock with a 4% coupon rate. It issued 2,000 shares for $100,000 On June 1, Your Company purchased merchandise inventory costing $350,000 on credit, 2/10,n/30. Your Company paid for the inventory on day seven. Your Company repurchased 450 shares of its own common stock from an unhappy shareholder for $15 per share. Your Company sold $85,000 of its inventory for $150,000 on account, terms 2/10, net 30. (Several customers) On December 1, Your Company paid $4,000 for cleaning services for December. Your Company collected $95,000 of its accounts receivable. All of the customers received the discount. On December 31, Your Company recorded $8,000 of salary expense. The employees will be paid on January 15, 2023. Record the year-end entry to recognize service income relating to entry 2. Record the year-end entry to recognize rent expense relating to entry 3. Record the warranty expense. Your Company estimates that this expense will be 5 percent of its cost of goods sold. Record the bad debt expense. Your Company estimates that 3 percent of its credit sales will not be collected.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter3: Processing Accounting Information
Section: Chapter Questions
Problem 3.15MCE: Journal Entries Following is a list of transactions entered into during the first month of...
Related questions
Question
Give
On February 1, Your Company’s board authorized 250,000 shares and issued 12,200 shares of $1 par common stock for $170,800 cash. | |||||||||||||||||||||
On February 1, Your Company received $142,500 as prepayment for 15 months of consulting services that will be provided evenly over the contract, beginning in October. | |||||||||||||||||||||
On March 1, Your Company paid $36,000 in cash as prepayment for 1 year of rent on an office building, beginning in March. | |||||||||||||||||||||
On May 1, Your Company’s board authorized 200,000 shares of $50 par, cumulative |
|||||||||||||||||||||
On June 1, Your Company purchased merchandise inventory costing $350,000 on credit, 2/10,n/30. | |||||||||||||||||||||
Your Company paid for the inventory on day seven. | |||||||||||||||||||||
Your Company repurchased 450 shares of its own common stock from an unhappy shareholder for $15 per share. | |||||||||||||||||||||
Your Company sold $85,000 of its inventory for $150,000 on account, terms 2/10, net 30. (Several customers) | |||||||||||||||||||||
On December 1, Your Company paid $4,000 for cleaning services for December. | |||||||||||||||||||||
Your Company collected $95,000 of its |
|||||||||||||||||||||
On December 31, Your Company recorded $8,000 of salary expense. The employees will be paid on January 15, 2023. | |||||||||||||||||||||
Record the year-end entry to recognize service income relating to entry 2. | |||||||||||||||||||||
Record the year-end entry to recognize rent expense relating to entry 3. | |||||||||||||||||||||
Record the warranty expense. Your Company estimates that this expense will be 5 percent of its cost of goods sold. | |||||||||||||||||||||
Record the |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub