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Accounting workbook

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Question 1 C.S. Lewis Company had the following transactions involving notes payable.;July 1, 2014 Borrows $50,000 from First National Bank by signing a 9-month, 8% note.;Nov. 1, 2014 Borrows $60,000 from Lyon County State Bank by signing a 3-month, 6% note.;Dec. 31, 2014 Prepares adjusting entries.;Feb. 1, 2015 Pays principal and interest to Lyon County State Bank.;Apr. 1, 2015 Pays principal and interest to First National Bank.;Prepare journal entries for each of the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.);Date Account Titles and Explanation Debit Credit;July 1, 2014;Nov. 1, 2014;Dec. 31, 2014;(Adjusting entry for First National Bank note.);Dec. 31, 2014;(Adjusting entry for Lyon County State Bank note.);Feb. 1, 2015;Apr. 1, 2015;Question 2 In performing accounting services to small businesses, you encounter the following situations pertaining to cash sales.;1. Poole Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $30,000 and sales taxes $1,500.;2. Waterman Company does not segregate sales and sales taxes. Its register total for April 15 is $25,680, which includes a 7% sales tax.;Prepare the entry to record the sales transactions and related taxes for each client. (Credit account titles are automatically indented when amount is entered. Do not indent manually.);Date Account Titles and Explanation Debit Credit;POOLE COMPANY;Apr. 10;WATERMAN COMPANY;Apr. 15;Question 3 Moreno Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $20 per year. During November 2014, Moreno sells 15,000 subscriptions beginning with the December issue. Moreno prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue.

 

Paper#74832 | Written in 18-Jul-2015

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