Accounting
rb247888
journal_entry_problem.docxJOURNAL ENTRY
STUDY PROBLEM 1-12
FINANCIAL TRANSACTIONS
1. Invested $200,000 to start JHJ rental car company
2. Paid cash of $10,000 for supplies
3. Paid cash of $24,000 for two year insurance policy
4. Purchased equipment on account in the amount of $10,000
5. Purchased $15,000 in supplies on account
6. Paid advertising expense of $10,000
7. Purchased ten autos for $30,000 each paying $50,000 down and signed a note for the balance
8. Received cash car rental revenue $400,000
9. Paid office salaries of $80,000
10. Paid rent expense of $40,000
11. Car rental revenue earned from corporate customers on account $100,000
12. Paid on accounts payable $20,000
13. Collection of cash from corporate customers $100,000
14. Invested an additional $100,000 in the business
15. Received cash car rental revenue $500,000
16. Paid sales salaries of $300,000
17. Car rental revenue earned from corporate customers $50.000
18. Collection of cash from corporate customers
19. Paid rent expense of $40,000
20. Paid delivery expenses of $4,000
21. Paid dividends of $5,000
22. Purchased supplies on account $20,000
23. Purchased supplies paying cash of $5,000
24. Paid principal on note payable $40,000
25. Paid interest expense on note payable $4,000
26. Cash car rental revenue received $75,000
27. Car rental revenue billed to corporate customers $125,000
28. Collections from corporate customers $125,000
29. Paid advertising expense $12,000
30. Paid miscellaneous office expenses $2,000
31. Invested additional $50,000 in the business
32. Paid dividends of $10,000
33. Purchased land for $200,000 paying $50,000 down and signed a note for balance
34. Paid principal on note payable $50,000
35. Paid interest on note payable $5,000
36. Received cash care rental income of $150,000
37. Billed corporate customers for car rental $250,000
38. Collected car rental income from corporate customers $100,000
39. Paid dividends $20,000
40. Purchased supplies on account $15,000
41. Ending supplies inventory $20,000
42. Bad debt expense 1% of credit sales
43. Dwight Howard paid $20,000 in advance to rent cars for friends for the NBA All Star Game
44. Depreciation expense on equipment is calculated utilizing straight-line method and five year life
45. Depreciation expense on autos is calculated utilizing the double declining balance method and a five year life
46. Record expiration of one year’s insurance premiums
47. Accrued salaries at end of year totaled $12,000
48. Dwight Howard was provided cars for all-star game
REQUIRED:
1. PREPARE JOURNAL ENTRIES AND POST ALL ENTRIES TO LEDGER
BALANCE SHEET ACCOUNTS INCOME STATEMENT ACCOUNTS
|
100 ASSETS |
400 REVENUES |
|
110 Cash |
410 Sales |
|
112 Accounts Receivable |
411 Sales Returns and Allowances |
|
113 Allowance for Doubtful Accounts |
412 Sales Discounts |
|
114 Inventory |
|
|
116 Supplies |
500 COST AND EXPENSES |
|
117 Prepaid Insurance |
510 Cost of Merchandise Sold |
|
120 Land |
520 Sales Salaries Expense |
|
123 Auto |
521 Advertising Expense |
|
124 Accumulated Depreciation on auto |
522 Depreciation Expense on equipment |
|
125 Equipment |
523 Delivery expense |
|
126 Accumulated depreciation on equipment |
524 Bad Debt Expense 529 Miscellaneous selling expense |
|
200 LIABILITIES |
530 Office salaries expense |
|
210 Accounts Payable |
531 Rent Expense |
|
211 Salaries Payable |
532 Depreciation Expense on auto |
|
212 Unearned income |
533 Insurance expense |
|
215 Notes Payable |
534 Office supplies expense |
|
300 STOCKHOLDR’S EQUITY |
539 Misc. Administrative Expense |
|
310 Capital Stock |
600 Other Income |
|
311 Retained Earnings |
610 Rent Revenue |
|
312 Dividends |
700 Other Expense |
|
313 Income Summary |
710 Interest Expense |
