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Make the journal entries necessary to record the following eight transactions.

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Question

Make the journal entries necessary to record the following eight transactions.;a. Purchased inventory on account for $130,000.;b. Sold goods for $100,000 cash. The goods originally cost $65,000.;c. Paid $27,000 cash for employee wages.;d. Paid $12,500 cash for advertising.;e. Sold goods for $25,000 cash and $60,000 on account (a total of $85,000). The goods originally cost $57,000.;f. Collected cash of $47,000 from the $60,000 receivable on account, the remaining $13,000 is expected to be collected later.;g. Paid cash of $55,000 on the $130,000 payable on account, the remaining $75,000 is expected to be paid later.;h. Paid cash dividends of $8,500.;Practice exercise 3-18;Posting with Revenues, Expenses, and Dividends;Refer to the journal entries made in Practice 3-17. Construct a T-account representing each account impacted by those eight transactions. Post all of the journal entries to these T-accounts.;Compute the ending balance in each account. Assume that the beginning balance in each T account is zero.;Practice exercise 3-19;Preparing a Trial Balance;Refer to the T-accounts constructed in Practice 3-16 and Practice 3-18. Using the ending balances in those T-accounts, construct a trial balance. Note: The only account that is common to these two sets of T-accounts is the cash account, add the two cash account balances together to get the total balance.

 

Paper#27448 | Written in 18-Jul-2015

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