PLEASE help with Accounting :( Transactions...I'm struggling on what account to debit or credit, etc...?

I have a list of 10 transactions due 2morrow morning, but I'm not sure exactly what to credit/debit in each situation...please help, i appreciate it very much...Nougat is the name of the corporation

1. The corporation purchased inventory for sale during 2007 at a cost of $233,000. All purchases were made on account.

2. Sales revenue totaled $316,000 for 2007. $212,000 was for cash, the remaining $104,000 was on credit.

3. During 2007 the corporation collected $103,400 from credit customers.

4. During 2007 the corporation paid $247,000 to suppliers for inventory previously purchased on account.

5. The cost of the inventory sold in transaction 2 was $230,000.

6. Nougat repaid $18,000 of the bank loan during 2007.

7. Nougat borrowed $50,000 during 2007 and signed a five-year note payable.

8. During 2007 Nougat purchased additional store equipment for $54,000 cash.

9. Selling, general and administration expenses totaled $62,800 for 2007 and include the $6,500 prepaid in 2006. Another $52,300 of the 2007 expenses was paid in cash and the remaining $4,000 of expenses incurred in 2007 was unpaid at December 31, 2007.

10. Nougat paid the Internal Revenue Service (IRS) $12,800 during 2007. This was for the balance of the 2006 taxes due and for advance payment of 2007 income taxes. Income tax on 2007 net income is estimated to be $6,800. (HINT: 2007 taxes have been overpaid and Nougat is entitled to a refund).

1 Answer

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  • Anonymous
    1 decade ago
    Favorite Answer

    1

    merchandise 233,000

    Cash 233,000

    2.

    Cash 212,000

    Accts Rec 104,000

    Sales 316,000

    3.

    Cash 103,000

    Accts Rec 103,000

    4.

    Accts Pay 247,000

    Cash 247,000

    5.

    cost of M sold 230,000

    Merchan inv 230,000

    6.

    Notes Pay 18,000

    Cash 18,000

    7.

    Cash 50,000

    Notes Pay 50,000

    8.

    Equipment 54,000

    Cash 54,000

    9.

    Selling expens 62,800

    Cash 52,300

    Prepaid 6,500

    Accts Pay 4,000

    10.

    Inc tax expens 12,800

    Inc tax pay 6,800

    Accts Rec 6,000

    It won't let me slide them out so they look right. The only one with more than one DEBIT entry is #2

    Source(s): Warren Reeve 9E
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