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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?.

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Journal Entry Practice

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  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.

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