The following information applies to the questions displayed below.] Roth Incorporated experienced the following transactions for Year 1, its first year of operations: Issued common stock for $80,000 cash. Purchased $235,000 of merchandise on account. Sold merchandise that cost $164,000 for $326,000 on account. Collected $274,000 cash from accounts receivable. Paid $220,000 on accounts payable. Paid $46,000 of salaries expense for the year. Paid other operating expenses of $35,000. Roth adjusted the accounts using the following information from an accounts receivable aging schedule. Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $31,200 0.01 0 to 30 13,000 0.05 31 to 60 2,600 0.10 61 to 90 2,600 0.20 Over 90 days 2,600 0.50 Required a. Record the given transactions in general journal form and post to T-accounts. Record the given transactions in general journal form. Record entry for issuance of common stock. Record purchase of merchandise on account. Record sale of merchandise on account. Record cost of goods sold. Record cash collected from accounts receivable. Record cash paid for account payable. Record cash paid for salaries expenses. Record cash paid for operating expenses. Record adjustment entry for uncollectible accounts expenses. B.Post the given transactions to T-accounts.

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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Required information

[The following information applies to the questions displayed below.]
Roth Incorporated experienced the following transactions for Year 1, its first year of operations:

Issued common stock for $80,000 cash.
Purchased $235,000 of merchandise on account.
Sold merchandise that cost $164,000 for $326,000 on account.
Collected $274,000 cash from accounts receivable.
Paid $220,000 on accounts payable.
Paid $46,000 of salaries expense for the year.
Paid other operating expenses of $35,000.
Roth adjusted the accounts using the following information from an accounts receivable aging schedule.

Number of Days Past Due	Amount	Percent Likely to Be Uncollectible
Current	$31,200	0.01
0 to 30	13,000	0.05
31 to 60	2,600	0.10
61 to 90	2,600	0.20
Over 90 days	2,600	0.50

Required

a. Record the given transactions in general journal form and post to T-accounts.

Record the given transactions in general journal form.

Record entry for issuance of common stock.

Record purchase of merchandise on account.

Record sale of merchandise on account.

Record cost of goods sold.

Record cash collected from accounts receivable.

Record cash paid for account payable.

Record cash paid for salaries expenses.

Record cash paid for operating expenses.

Record adjustment entry for uncollectible accounts expenses.

B.Post the given transactions to T-accounts.

Expert Solution

Step 1

In the accounting books of the business organizations the journal entry served as a record of its financial activities. The business entities provide the journal entries so as to get the records of all the business transactions occurs in chronological order.

Journal entry types: