Sysco, formed in 1969, is America’s largest marketer and distributor of food service products, serving nearly 250,000 restaurants, hotels, schools, hospitals, and other institutions. The following transactions are typical of those that occurred in a recent year, but the amounts are simplified. Borrowed $80,000 from a bank, signing a short-term note payable. Provided $100,000 in service to customers, with $95,000 on account and the rest received in cash. Purchased equipment for $130,000 in cash. Incurred and paid employee wages of $1,000. Received $410 on account from a customer. Incurred and paid $4,000 cash for travel costs during the year. Paid $8,200 cash on accounts payable. Incurred $20,000 in utility expenses during the year, of
Sysco, formed in 1969, is America’s largest marketer and distributor of food service products, serving nearly 250,000 restaurants, hotels, schools, hospitals, and other institutions. The following transactions are typical of those that occurred in a recent year, but the amounts are simplified. Borrowed $80,000 from a bank, signing a short-term note payable. Provided $100,000 in service to customers, with $95,000 on account and the rest received in cash. Purchased equipment for $130,000 in cash. Incurred and paid employee wages of $1,000. Received $410 on account from a customer. Incurred and paid $4,000 cash for travel costs during the year. Paid $8,200 cash on accounts payable. Incurred $20,000 in utility expenses during the year, of
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sysco, formed in 1969, is America’s largest marketer and distributor of food service products, serving nearly 250,000 restaurants, hotels, schools, hospitals, and other institutions. The following transactions are typical of those that occurred in a recent year, but the amounts are simplified.
- Borrowed $80,000 from a bank, signing a short-term note payable.
- Provided $100,000 in service to customers, with $95,000 on account and the rest received in cash.
- Purchased equipment for $130,000 in cash.
- Incurred and paid employee wages of $1,000.
- Received $410 on account from a customer.
- Incurred and paid $4,000 cash for travel costs during the year.
- Paid $8,200 cash on accounts payable.
- Incurred $20,000 in utility expenses during the year, of which $15,000 was paid in cash and the rest owed on account.
Required:
- For each of the above transactions, prepare accrual basis
journal entries. - Calculate the company’s preliminary net income
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