American Laser, Inc., reported the following account balances on January 1. DebitCreditAccounts Receivable$5,000 Accumulated Depreciation $30,000 Additional Paid-in Capital 90,000 Allowance for Doubtful Accounts 2,000 Bonds Payable 0 Buildings 247,000 Cash 10,000 Common Stock, 10,000 shares of $1 par 10,000 Notes Payable (long-term) 10,000 Retained Earnings 120,000 Treasury Stock 0 TOTALS$262,000 $262,000 The company entered into the following transactions during the year. Jan. 15 Issued 5,000 shares of $1 par common stock for $50,000 cash.Jan. 31 Collected $3,000 from customers on account.Feb. 15 Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash.Mar. 15 Reissued 2,000 shares of treasury stock for $24,000 cash.Aug. 15 Reissued 600 shares of treasury stock for $4,600 cash.Sept. 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock.Oct. 1 Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101.Oct. 3 Wrote off a $2,000 balance due from a customer who went bankrupt.Dec. 29 Recorded $230,000 of service revenue, all of which was collected in cash.Dec. 30 Paid $200,000 cash for this year’s wages through December 31. Ignore payroll taxes and payroll deductions.Dec. 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.)Prepare journal entries for each of the transactions

Journal entries:- Journal entries are the initial entries that are done in the books of accounts…

Answered: Prepare journal entries for each of the…

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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American Laser, Inc., reported the following account balances on January 1.

	Debit	Credit
Accounts Receivable	$	5,000
Accumulated Depreciation			$	30,000
Additional Paid-in Capital				90,000
Allowance for Doubtful Accounts				2,000
Bonds Payable				0
Buildings		247,000
Cash		10,000
Common Stock, 10,000 shares of $1 par				10,000
Notes Payable (long-term)				10,000
Retained Earnings				120,000
Treasury Stock		0
TOTALS	$	262,000	$	262,000

The company entered into the following transactions during the year.

Jan.	15	Issued 5,000 shares of $1 par common stock for $50,000 cash.
Jan.	31	Collected $3,000 from customers on account.
Feb.	15	Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash.
Mar.	15	Reissued 2,000 shares of treasury stock for $24,000 cash.
Aug.	15	Reissued 600 shares of treasury stock for $4,600 cash.
Sept.	15	Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock.
Oct.	1	Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101.
Oct.	3	Wrote off a $2,000 balance due from a customer who went bankrupt.
Dec.	29	Recorded $230,000 of service revenue, all of which was collected in cash.
Dec.	30	Paid $200,000 cash for this year’s wages through December 31. Ignore payroll taxes and payroll deductions.
Dec.	31	Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.)

Prepare journal entries for each of the transactions

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