(a)
Introduction:
The journal entries for the transactions to be entered into the books of local government
(a)
Answer to Problem 19.15P
Journal Entries
S.no | Date | Particulars | Debit (in $) | Credit (in$) |
1 | Equipment purchase | 25,000 | ||
Cash | 25,000 | |||
2 | Cash | 100,000 | ||
Revenue | 100,000 | |||
3 | Cash | 55,000 | ||
Investment | 50,000 | |||
Gain on sale of investment | 5,000 | |||
4 | Cash | 1,000,000 | ||
Issue of bond | 1,000,000 | |||
Construction expenses | 1,000,000 | |||
Cash | 1,000,000 | |||
Explanation of Solution
- Recording the amount released from the general fund for the purchase of equipment
- Recording the donation received from donor
- Recording the sale of investment
- Recording the issue of bonds
(b)
Introduction: Journal entries is a systematic method of recording transactions as and when they occur. It is a summary of transactions divided into the debit and credit items that are recorded chronologically. It is an act of keeping and recoding all the transactions occurring in the business.
The journal entries for the transactions to be entered into the books of Voluntary Health and Welfare Organization
(b)
Answer to Problem 19.15P
Journal Entries
S.no | Date | Particulars | Debit (in $) | Credit (in$) |
1 | Equipment purchase | 25,000 | ||
Cash | 25,000 | |||
Cash | 25,000 | |||
Net assets realized- Asset acquisition | 25,000 | |||
Net asset realized- Asset acquisition | 25,000 | |||
Cash | 25,000 | |||
2 | Cash | 55,000 | ||
Investment- common stock | 50,000 | |||
Gain on sale of investment | 5,000 | |||
3 | Cash | 1,000,000 | ||
Bonds payable | 1,000,000 | |||
Buildings | 1,000,000 | |||
Cash | 1,000,000 | |||
Explanation of Solution
- Recording the asset acquisition
- Recording the donation received from donor
- Recording the sale of investment
- Recording the issue of bonds
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Chapter 19 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
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