1 / 33

Journal Entry Practice

Journal Entry Practice. E3-3 Recording the Transactions. A customer orders and receives 10 personal computers from Dell; the customer promises to pay $18,400 within three months. Answer from Dell’s standpoint. What about cost info?.

leone
Download Presentation

Journal Entry Practice

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Journal Entry Practice

  2. E3-3Recording the Transactions

  3. A customer orders and receives 10 personal computers from Dell; the customer promises to pay $18,400 within three months. Answer from Dell’s standpoint. What about cost info?

  4. Fucillo Hyundai, Inc, sells a truck with a list, or sticker, price of $20,050 for $18,050 cash.

  5. Bon-Ton Department Store orders 1,000 men’s shirts from Arrow Shirt Company for $15 each for future delivery. The terms require full payment within 30 days of delivery. Answer from Arrow’s standpoint.

  6. Arrow Shirt Company completes production of the shirts described in part c and delivers the order (answer from Arrow Shirt Company perspective)

  7. Arrow receives payment from Bon-Ton for the order described in part c. Answer from the perspective of Arrow Shirt Company.

  8. A customer purchases a ticket from American Airlines for $410 cash to travel the following January. Answer from American Airlines perspective.

  9. General Motors issues $20 million in new common stock

  10. Pen State University receives $18,300,000 cash for 80,000 five-game season football tickets.

  11. Penn State plays the first football game described in part h.

  12. Precision Construction Company signs a contract with a customer for the construction of a new $500,000 warehouse. At the signing, Precision receives a $50,000 deposit as a deposit on the future construction project. Answer from the perspective of Precision.

  13. On September 1, 2012, a bank lends $1,200 to a company; the note principal and $144 annual interest are due in one year (1,200 X 12%). Answer from the Bank’s perspective. • NOW: • In 1 year (assuming no other transactions are recorded?

  14. A popular ski magazine company receives a total of $1,980 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the perspective of the magazine company: • What do you do with each edition of the magazine that is sent out (assume 12 issues)?

  15. Sears, a retail store, sells a $100 lamp to a customer who charges the sale on his store credit card. Answer from Sear’s perspective.

  16. E 3-4 Recording the transactions

  17. Dell pays its computer service technicians $79,500 in salaries for two weeks ended January 7. • ASSUME: No Salaries Payable has been previously recorded.

  18. At the beginning of January, Turner Construction Company pays $4,410 in worker’s compensation insurance for the first three months of the year.

  19. McGraw-Hill Publishing Company uses $754 worth of electricity and natural gas in its headquarters building for which it has not yet been billed. Note: Expense is incurred when utilities are used and can be recorded when amount is known.

  20. Arrow Shirt Company completes production of 500 men’s shirts ordered by Bon-Ton’s Department Store at a cost of $10 each and delivers the order. Note: No information was provided about sales information. Would have been Accounts Receivable and Sales Revenue.

  21. The campus bookstore receives 500 accounting texts at a cost of $43 each. The terms indicate that payment is due within 30 days of delivery.

  22. During the last week of January, the campus bookstore sold 450 accounting texts received in part e at a sales price of $92 each. Assume cost data from part e (cost of $43 per book)

  23. Fucillo Hyundai, Inc. pays its salespersons $3,200 in commissions related to December automobile sales. Assume: Company had previously recorded commissions payable.

  24. Fucillo Hyundai, Inc. determines that it will pay its salespersons $4,470 in commissions related to January sales. The payment will be made in early February.

  25. A new grill is purchased and installed at a Wendy’s restaurant at the end of the day on January 31; $8,750 cash payment was made on that day.

  26. The University of Florida orders 60,000 season football tickets from its printer and pays $5,410 in advance for the custom printing. The first game will be paid in September.

  27. Carousel Mall had janitorial supplies costing $4,000 in storage. An additional $2,600 worth of supplies was purchased during January. At the end of January, $410 worth of janitorial supplies remained in storage. Assume: Purchase of supplies was properly recorded, just recording the supplies used.

  28. An Iowa State University employee works eight hours, at $13 per hour, on January 31; however, payday is not until February 3.

  29. Wang Company paid $3,600 for a fire insurance policy on January 1. The policy covers 12 months beginning January 1.

  30. Darrius Incorporated has its delivery van repaired for $300 and charges the amount on account.

  31. Hass Company, a farm equipment company, receives its phone bill at the end of January for $202 for January calls. The bill has not been paid to date.

  32. Martin Company receives and pays in January a $1,285 invoice (bill) from a consulting firm for services received in January.

  33. Parillo’s Taxi Company pays a $595 invoice from a consulting firm for services received and recorded in December.

More Related