Jan. 8Purchased merchandise on account at a cost of 14,000. (Assume a perpetual inventory system.) 17Paid for the January 8 purchase. Apr Received 40,000 from National Bank after signing a 12-month, 6 percent, promissory Inote. June Purchased merchandise on account at a cost of 18,000. July 5Paid for the June 3 purchase. Aug Rented out a small office in a building owned by Company and collected six months rent 1in advance amounting to 6,000. (Use an account called Unearned Rent Revenue.) Dec.Received a 100 deposit from a customer as a guarantee to return a large trailer borrowed 20 for 30 days. TIP: Consider whether Company has an obligation to return the money when the trailer is returned. Dec. Determined that wages of 6,500 were earned but not yet paid on December 31 (ignore 31 payroll taxes). 31 Adjusted the accounts at year-end, relating to interest. Dec. 31 Adjusted the accounts at year-end, relating to rent. Required: 1.Prepare journal entries for each of the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2.Prepare any adjusting entries required on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) 3.Show how all of the liabilities arising from these items are reported on the balance sheet at Dece 31. (Do not round intermediate calculations.)
Jan. 8Purchased merchandise on account at a cost of 14,000. (Assume a perpetual inventory system.) 17Paid for the January 8 purchase. Apr Received 40,000 from National Bank after signing a 12-month, 6 percent, promissory Inote. June Purchased merchandise on account at a cost of 18,000. July 5Paid for the June 3 purchase. Aug Rented out a small office in a building owned by Company and collected six months rent 1in advance amounting to 6,000. (Use an account called Unearned Rent Revenue.) Dec.Received a 100 deposit from a customer as a guarantee to return a large trailer borrowed 20 for 30 days. TIP: Consider whether Company has an obligation to return the money when the trailer is returned. Dec. Determined that wages of 6,500 were earned but not yet paid on December 31 (ignore 31 payroll taxes). 31 Adjusted the accounts at year-end, relating to interest. Dec. 31 Adjusted the accounts at year-end, relating to rent. Required: 1.Prepare journal entries for each of the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2.Prepare any adjusting entries required on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) 3.Show how all of the liabilities arising from these items are reported on the balance sheet at Dece 31. (Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Jan. SPurchased merchandise on account at a cost of 14,000. (Assume a perpetual inventory
system.)
17Paid for the January 8 purchase.
Apr.Received 40,000 from National Bank after signing a 12-month, 6 percent, promissory
1note.
June Purchased merchandise on account at a cost of 18,000.
July 5Paid for the June 3 purchase.
Aug Rented out a small office in a building owned by Company and collected six months rent
1in advance amounting to 6,000. (Use an account called Unearned Rent Revenue.)
Dec.Received a 100 deposit from a customer as a guarantee to return a large trailer borrowed
20 for 30 days.
TIP: Consider whether Company has an obligation to return the money when the
trailer is returned.
Dec.Determined that wages of 6,500 were earned but not yet paid on December 31 (ignore
31payroll taxes).
Dec-Adjusted the accounts at year-end, relating to interest.
31
Dec.
Adjusted the accounts at year-end, relating to rent.
31
Required:
1.Prepare journal entries for each of the transactions. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field.)
2.Prepare any adjusting entries required on December 31. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field. Do not
round intermediate calculations.)
3.Show how all of the liabilities arising from these items are reported on the balance sheet at December
31.(Do not round intermediate calculations.)
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