Bailey's Department Store Journal Entries I.Dr. Cash $500 Cr. Refundable Deposit $500 II.Dr. Cash $798,000 Cr. Sales Revenue $760,000 Cr. Sales Tax Payable $38,000 III. Dr. Property Equipment$126,000 Cr. Cash $126,000 IV. Dr. Land Improvement $84,000 Cr. Improvement Obligation$84,000 V.Dr. Loss Contingency $250,000 Cr. Liability- Contingency $250,000 Required:Prepare only the liability portion of Bailey's Balance Sheet from the journal entries above.

The balance sheet is one of the important financial statements that businesses must prepare at the…

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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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Bailey's Department Store Journal Entries

I.	Dr. Cash			$500
		Cr. Refundable Deposit		$500


II.	Dr. Cash			$798,000
		Cr. Sales Revenue		$760,000
		Cr. Sales Tax Payable		$38,000

III.
	Dr. Property Equipment	$126,000
		Cr. Cash			$126,000

IV.
	Dr. Land Improvement		$84,000
		Cr. Improvement Obligation	$84,000

V.	Dr. Loss Contingency		$250,000
		Cr. Liability- Contingency		$250,000

Required:

Prepare only the liability portion of Bailey's Balance Sheet from the journal entries above.

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