Assuming the use of a two-column (all-purpose) general journal, a purchases journal, and a cash payments journal as illustrated in this chapter, indicate the journal in which each of the following transactions should be recorded: Purchase of an office computer on account. Issued Invoice No. In this case, instead of debiting the accounts payable as in the example above, the company ABC needs to debit the $500 into the maintenance expense account together with the crediting of the same amount into the bank account. The company may issue the check for various reasons including settling the previous credit purchase, purchasing the assets, or paying the expenses. Ref. Determine the balance in the accounts. May 3. Issued Check No. Electrical Service on account, $110. Issued Check No. 7 to Hopkins Co. for $295 on account. 2 in payment of field supplies, $3,080, and office supplies, $350. Paid Equipment Supply Services $1,500, the balance remaining from the January 3 purchase of supplies. The forms of the journals are similar to those illustrated in the text. Assume that this investment is estimated to produce$99 million in equal annual cash flows for each of the first 10 years of the project life. 323 to Pryor Corp. for services rendered on account, $565. 795 to Shilo Co., $3,450. power. Set up a T account for Accounts Receivable and T accounts for the four accounts needed in the customer ledger. Transactions related to revenue and cash receipts completed by Lasting Summer Inc. during the month of October 20Y5 are as follows: Check Figure:Revenue journal total, $8,700. 721 to Auto-Flex Co., $1,330. Purchased supplies for $3,250 on credit. By what amount will Coxs paid-in capitalshare repurchase increase if it determines the cost of treasury shares by the FIFO method? Cash fees earned for December 1731, $23,660. What is the balance of the accounts receivable controlling account at January 31? h. A utility bill of$435 relating to utility service on Front Rows office for January and February was received but not paid by the end of February. At the end of February, Cam and Anna felt like their business was doing well; however, they Check Figure:Total accounts payable, $5,840. Step-by-step explanation: When you issue a check to pay a bill drawn against your personal bank account, it is not considered cash, even if you have enough money to cover it at the time. 348 to Jennings Inc. for cleaning expenses, $80. 16. Depreciation reflects the loss in value of the equipment as you use it. Check Figure:Accounts Receivable balance, January 31, $10,310. This is needed so that it knows how much it owes to each individual supplier. What is the October 31 balance of the Pryor Corp. customer account assuming a zero balance on October 1? When its time to buy new equipment, know how to account for it in your books with a purchase of equipment journal entry. Some customers make partial payments rather than full payments. Sweetwater Water Testing Service was established on June 16, 2014. Purchased$475 of supplies on credit from Equipment Supply Services. Issued Check No. 324 to Rose Co. for services rendered on account, $2,320. May 20. Received cash from CMI Inc., on account, for $475. Issued Check No. Paid automobile expenses for month, $2,900, and miscellaneous expenses, $1,450. The normal accounting for supplies is to charge them to expense when they are purchased, using the following journal entry. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made. music industry to sign 12 other artists. 2 Purchased the following from Petro Services Inc. on account: field supplies, $25,300 and office equipment, $5,500. Take a look at the following journal entry example: Lets say you sell your asset and end up making money. Issued Check No. The company provided revenue disclosures by its major product segments in the notes to its financial statements as follows: Provide a vertical analysis of the product segment revenue. If the cost of the supplies that you have purchased and not yet consumed is significant, then you can instead record them as an asset, using the following entry: By using this later approach, the supplies will appear on your balance sheet as a current asset, until you use them and charge them to expense with this entry: Thus, consuming supplies converts the supplies asset into an expense. The transactions completed by AM Express Company during March, the first month of the fiscal year, were as follows: Enter the following account balances in the general ledger as of March 1: Journalize the transactions for March, using the following journals similar to those illustrated in this chapter: single-column revenue journal (p. 35), cash receipts journal (p. 31), purchases journal (p. 37, with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), cash payments journal (p. 34), and two-column general journal (p. 1). Shannon Consulting Company had the following transactions during the month of October: Record the October revenue transactions for Shannon Consulting Company in the following revenue journal format: What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October? Purchased office equipment from Office Helper Inc. on account, $2,510. 612 for $410 to Office To Go Inc. in payment of invoice. 613 for $3,870 to Essential Supply Co. in payment of account. Ref. Purchased field supplies on account from Midland Supply Co., $12,450. What are some of the benefits of the computerized system over the manual system? Refer to the following partial chart of accounts: At the points indicated in the narrative of transactions, post to the following accounts in the accounts payable subsidiary ledger: Check Figure:Total cash payments, $203,940. 57 to Bio Safe Supplies Inc. in payment Issued Check No. Cleaning Supplies had a zero balance at the beginning of the month. Issued Invoice No. What conclusions can be drawn from your analyses? 209 to Porter Co. in payment of $415 invoice. Using the two special journals and the two-column general journal (p. 1), journalize the transactions for April. Check Figure:Total cash receipts, $34,390. After the assets useful life is over, you might decide to dispose of it by: The journal entry you make depends on whether the asset is fully depreciated and whether you sell it for a profit or loss. 1 in payment of rent for the remainder of October, $7,000. column to indicate when the accounts payable subsidiary ledger should be posted. Earned sales commissions and sent invoices to customers, $22,500. balance of the accounts payable controlling account, shown as follows: c. Happy Tails Inc. uses a subsidiary ledger for accounts payable to track its credit purchases and payments to the individual supplier. (Because the problem does not include transactions related to cash receipts, the cash account in the ledger will have a credit balance.). Place a check mark () in the Post. This transaction (more), please make me brainlist Dear and follow me, This site is using cookies under cookie policy . Use the Internet to investigate each companys site in conducting your research. Issued check in paymentfor supplies purchased on account. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of June 2014 are as follows: June 4 Best Friend Supplies Inc. 255 255, 19 Office Helper Inc. 2,670 Office Equipment 18 2,670, 23 347 Best Friend Supplies Inc. 255 255, Total creditor (supplier) accounts $3,780, The total of the creditor accounts on June 30, 2014, $3,780, equals the. After Bunker Hill Assay Services Inc. had completed all postings for March in the current year (20Y4), the sum of the balances in the following accounts payable ledger did not agree with the $36,600 balance of the controlling account in the general ledger: Assuming that the controlling account balance of $36,600 has been verified as correct, (a) determine the error(s) in the preceding accounts and (b) prepare a listing of accounts payable creditor balances (from the corrected accounts payable subsidiary ledger). Sweetwater uses field equipment and field supplies (chemicals and other supplies) to analyze water for unsafe contaminants in streams, lakes, and ponds. Sept. 30 Withdrew $3,000 in cash for personal expenses. 322 to Armor Inc. for services rendered on account, $850. In this case, the company ABC can make the journal entry for issuing the check above by debiting $1,000 into the accounts payable and crediting the same amount to the bank account. Received check from Clifford Co. in payment of $2,180 invoice of December 2. 57 to Bio Safe Supplies Inc. in payment But instead of reversing the whole amount, the seller only reverses a portion of the total transaction. All the materials from our website should be used with proper references and in accordance with Terms & Conditions. Debit your Accumulated Depreciation account $10,000 and credit your Computers account $10,000. Received $3,200 note receivable in partial settlement of the balance due on the Shilo Co. account. Issued Invoice No. Paid Meralco bill for the light and power consumed for the month. Post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry. When it comes to recording equipment, loop the income statement in once you start using the asset. 60 to Brite N Shine Products Inc. in Post to the following customer accounts in the accounts receivable ledger and insert the balance immediately after recording each entry: Amber Waves Co.; Carson Co.; Hopkins Co.; Murphy Co.; Qwik-Mart Co. 9. Issued Invoice No. Purchases on account completed by Plumb Line Surveyors during May are as follows: Insert the following balances in the general ledger as of May 1: Insert the following balances in the accounts payable subsidiary ledger as of May 1: Journalize the transactions for May, using a purchases journal (p. 30) similar to the one illustrated in this chapter. Purchased office supplies on account from Best Office Supply Co., $620. Collected advance ticket sales of $10,125 relating to various concerts that were being promoted. 10. In terms of trading volume, it is by far the largest market in the world . Issued Invoice No. Prepare a vertical analysis of the segment data. 796 to Pinecrest Co., $5,500. entertainment, news presenter | 4.8K views, 28 likes, 13 loves, 80 comments, 2 shares, Facebook Watch Videos from GBN Grenada Broadcasting Network: GBN News 28th April 2023 Anchor: Kenroy Baptiste. 622 for services provided to Palace Corp., $2,890. These types of assets are subject to depreciation. The debits and credits from three related transactions are presented in the following customers account taken from the accounts receivable subsidiary ledger: Describe each transaction and identify the source of each posting. Purchased electrical repair services from Bowman Electrical Service on account, $110. 59 to Bowman Electrical Service in payment of account, $145. 6. Issued Check No. Received check for $14,000 from Chavez Co. in payment of invoice. The services provided during the remainder of the month are as follows: Journalize the transactions for July, using a single-column revenue journal and a two-column general journal. Received check for $5,100 from Trimble Co. in payment of account. You predict the equipment has a useful life of five years and use the straight-line method of depreciation. 212 for miscellaneous administrative expense, $4,680. Generally, equipment and property fall under the fixed asset category. Purchased office equipment on account from Accu-Vision Supply Co., $8,150. Prepare a listing of the accounts receivable customer balances as of May 31, 20Y3. Issued Invoice No. The foreign exchange market (forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies.This market determines foreign exchange rates for every currency. 4 to Hydro Supply Co. in payment of April 16 invoice, $5,340. Purchased field supplies on account from Hydro Supply Co., $7,650. Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. Place a check mark () in the Post. Nov.1 Received $41,000 cash and issued common stock to Stewart Nov. 1 4 Purchased office supplies, $1,200, and furniture, $2,300, on account. Assume Sage Learning Centers began using a computerized accounting system to record the sales transactions on August 1. Advance payment of a one-year fire insurance policy on the office. Purchased supplies for $260 paid immediately with Check 1002. 321 from Pryor Corp. 4 to Carson Co. for $680 on account. cash - debit column to indicate when the accounts payable subsidiary ledger should be posted. For each of the following companies, determine what they primarily sell and whether their e-commerce strategy is primarily business-to-consumer (B2C), business-to-business (B2B), or both. The office staff use office supplies, while surveying crews use field supplies. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of September 20Y4 are as follows: Prepare a purchases journal and a cash payments journal to record these transactions. 18. In this journal entry, both total assets and total liabilities on the balance sheet decrease by $1,000 as of September 30. Issued Invoice No. 217 in payment of office salaries, $21,200. Received check for rent revenue on office space, $900. Purchased office equipment on account from Office Mate Inc., $1,570. 613 for $3,870 to Essential Supply Co. in payment of account. Issued Invoice No. Besides, our customers satisfaction rate says it all. 614 for $630 to Porter Co. in payment of account. Sage Learning Centers was established on July 20 to provide educational services. Purchased the following from Pure Equipment Co. on account: field supplies, $1,340, and field equipment, $4,700. Journal entry for issuing check will reduce the balance in the bank account of the company.