Presentation Transcript

1. Purchased merchandise on account.

   Accounts Payable Purchases

2. Sold merchandise on account with sales tax.

   Accounts Receivable Sales Sales Tax Payable

3. Paid the sales tax liability.

   Sales Tax Payable Cash
4. Paid the payroll. Salary Expense Social Security Tax Payable Medicare Tax Payable Employee Income Tax Payable Cash

5. Received cash from sales.

   Cash Sales Sales Tax Payable

6. Received cash on account.

   Accounts Receivable Cash

7. Close loss on plant assets.

   Loss on Plant Assets Income Summary

8. Close sales returns and allowances.

   Sales Returns and Allowances Income Summary

9. Close the drawing account

   Owner Drawing Owner Capitol

10. Record the adjusting entry for annual depreciation.

    Depreciation Expense Annual Depreciation

11. Issued capitol stock.

    Capitol Stock Common Cash

12. Received a subscription for stock.

    Subscriptions Receivable Stock Subscribed

13. Received final payment of subscription.

    Subscriptions Receivable Stock Subscribed Cash Capitol Stock Common

14. Bought back our own stock.

    Treasury Stock Cash

15. Sold capitol stock for more than par value.

    Capitol Stock Common Cash Paid in Excess

16. Sold back treasury stock for more than we paid for it.

    Treasury Stock Cash Paid in Excess

17. Declared a Dividend.

    Dividends Payable Dividends

18. Paid a Dividend.

    Cash Dividends Payable

19. Issued a Promissory note.

    Accounts Payable Notes Payable

20. Issued a discounted promissory note to the bank.

    Cash Interest Expense Notes Payable

21. Paid promissory note with interest issued in number 59.

    Notes Payable Interest Expense Cash

22. Record a dishonored note receivable.

    Accounts Receivable Notes Receivable Interest Income

23. Received cash for previously dishonored note with additional interest.

    Cash Accounts Receivable Interest Income

24. Record accrued interest income.

    Interest Receivable Interest Income

25. Record accrued interest expense.

    Interest Expense Interest payable

26. Bought Office Equipment.

    Office Equipment Cash

27. Discarded office equipment with no book value. (No additional depreciation)

    Accumulated Depreciation Office Equipment

28. Discarded office equipment with a book value. (No additional depreciation)

    Accumulated Depreciation Loss on PA Office Equipment

29. Sold office equipment for more than book value.

    Accumulated Depreciation Cash Office Equipment Gain on PA

30. Traded office equipment and cash for new piece of office equipment.

    Accumulated Depreciation Cash Office Equipment