P3-1 Journal Entries, Posting, and Trial Balance The account balances of the Antil Company on November 1, 2010 are as follows: Debit $25,000 Debit Credit Credit Cash $ 7,800 Patents $ 38,750 Accounts receivable Allowance for doubtful accounts Accounts payable Notes payable 12,530 740 2,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

Do you know the complete solution?

Journal Entries, Posting, and Trial Balance The account balances of the Antil Company on November 1, 2010 are
P3-1
as follows:
Debit
Credit
Debit
Credit
Cash
$ 7,800
Patents
$25,000
$ 38,750
Accounts receivable
Allowance for doubtful accounts
Accounts payable
Notes payable
Common stock, no par
12,530
740
2,400
Notes receivable
6,000
165,000
Retained earnings, January 1, 2010
Sales revenue
Inventory
25,121
24,958
840
38,400
Prepaid insurance
Office supplies
465
Sales returns and allowances
1,567
(Continued)
Credit
Debit
Debit
Credit
Land
32,000
Cost of goods sold
Sales salaries expense
Office salaries expense
Advertising expense
Utility expense
74,350
6,200
Buildings
Accumulated depreciation:
buildings
Equipment
Accumulated depreciation:
66,580
4,300
1,250
21,400
1,845
37,620
550
Interest revenue
equipment
Interest expense
210
11,480
During the month of November, the following transactions took place:
Date
Nov, 2
Transaction
Made cash sales of $3,400; the cost of the inventory sold was $2,040.
Purchased $900 of inventory for cash.
Sold an unused 1/2 acre of land for $4,000; the land had originally cost $3,650.
Purchased a two-year comprehensive insurance policy for $528.
Leased an unused portion of its building to Charles Company, collecting six months' rent in advance at
$220 per month.
Made $2,300 of sales on credit to Smith Company; the cost of the inventory sold was $1,400.
Collected the $200 monthly payment plus $30 interest on a customer's note receivable.
Purchased $1,600 of inventory on credit from Mason Company.
Granted Smith Company a $200 allowance for defective inventory (from the November 13 transaction) and
credited its account.
Purchased land for a future building site. Made a $2,000 down payment and signed a 12%, 90-day $6,000
note payable for the balance.
Collected the Smith Company account for the November 13 sale less the return.
Paid for the November 17 purchase of inventory.
Paid the city newspaper $420 for advertising that had appeared during November.
Paid $520 of sales salaries and $390 of office salaries.
3
5
8
12
13
16
17
19
20
23
26
27
30
Required
1. Prepare general journal entries to record the preceding transactions.
2. Post to the general ledger accounts.
3. Prepare a trial balance on November 30. 2010.
Transcribed Image Text:Journal Entries, Posting, and Trial Balance The account balances of the Antil Company on November 1, 2010 are P3-1 as follows: Debit Credit Debit Credit Cash $ 7,800 Patents $25,000 $ 38,750 Accounts receivable Allowance for doubtful accounts Accounts payable Notes payable Common stock, no par 12,530 740 2,400 Notes receivable 6,000 165,000 Retained earnings, January 1, 2010 Sales revenue Inventory 25,121 24,958 840 38,400 Prepaid insurance Office supplies 465 Sales returns and allowances 1,567 (Continued) Credit Debit Debit Credit Land 32,000 Cost of goods sold Sales salaries expense Office salaries expense Advertising expense Utility expense 74,350 6,200 Buildings Accumulated depreciation: buildings Equipment Accumulated depreciation: 66,580 4,300 1,250 21,400 1,845 37,620 550 Interest revenue equipment Interest expense 210 11,480 During the month of November, the following transactions took place: Date Nov, 2 Transaction Made cash sales of $3,400; the cost of the inventory sold was $2,040. Purchased $900 of inventory for cash. Sold an unused 1/2 acre of land for $4,000; the land had originally cost $3,650. Purchased a two-year comprehensive insurance policy for $528. Leased an unused portion of its building to Charles Company, collecting six months' rent in advance at $220 per month. Made $2,300 of sales on credit to Smith Company; the cost of the inventory sold was $1,400. Collected the $200 monthly payment plus $30 interest on a customer's note receivable. Purchased $1,600 of inventory on credit from Mason Company. Granted Smith Company a $200 allowance for defective inventory (from the November 13 transaction) and credited its account. Purchased land for a future building site. Made a $2,000 down payment and signed a 12%, 90-day $6,000 note payable for the balance. Collected the Smith Company account for the November 13 sale less the return. Paid for the November 17 purchase of inventory. Paid the city newspaper $420 for advertising that had appeared during November. Paid $520 of sales salaries and $390 of office salaries. 3 5 8 12 13 16 17 19 20 23 26 27 30 Required 1. Prepare general journal entries to record the preceding transactions. 2. Post to the general ledger accounts. 3. Prepare a trial balance on November 30. 2010.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education