Accounting general journal help?

Jan.

4

Paid cash to Lyn Addie for five days’ work at the rate of $125 per day. Four of the five days relate to wages payable that were accrued in the prior year.

5

Adriana Lopez invested an additional $25,000 cash in the business in exchange for more common stock.

7

Purchased $5,800 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.

9

Received $2,668 cash from Gomez Co. as full payment on its account.

11

Completed a five-day project for Alex’s Engineering Co. and billed it $5,500, which is the total price of $7,000 less the advance payment of $1,500.

13

Sold merchandise with a retail value of $5,200 and a cost of $3,560 to Liu Corp., invoice dated January 13.

15

Paid $600 cash for freight charges on the merchandise purchased on January 7.

16

Received $4,000 cash from Delta Co. for computer services provided.

17

Paid Kansas Corp. for the invoice dated January 7, net of the discount.

20

Liu Corp. returned $500 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $320 cost, is discarded. (The policy of Success Systems is to leave the cost of defective products in cost of goods sold.)

22

Received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise.

24

Returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $496.

26

Purchased $9,000 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26.

26

Sold merchandise with a $4,640 cost for $5,800 on credit to KC, Inc., invoice dated January 26.

29

Received a $496 credit memorandum from Kansas Corp. concerning the merchandise returned on January 24.

31

Paid cash to Lyn Addie for 10 days’ work at $125 per day.

3 Answers

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  • 7 years ago
    Favorite Answer

    JOURNAL ENTRIES:

    Jan.

    4

    Paid cash to Lyn Addie for five days’ work at the rate of $125 per day. Four of the five days relate to wages payable that were accrued in the prior year.

    For the accrued wages of previous year, the following entries must have been passed:

    -On Closing day:

    Dr Wages .................... 500

    Cr Accrued wages ................... 500

    - On first day of next year, the entry must have been reversed:

    Dr Accrued wages ..... 500

    Cr Wages* ...................................500

    In view of '*', the entire wages(including last year's wages) will be debited to Wages A/c. '*' will take care of the debit.

    Dr wages ................... 625

    Cr Cash/Bank .............................. 625

    5

    Adriana Lopez invested an additional $25,000 cash in the business in exchange for more common stock.

    Dr Cash ..................... $25,000

    Cr Common stock .......................... $25,000

    7

    Purchased $5,800 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.

    Dr Purchases ........... $5,800

    Cr Sundry Creditors ........................ $5,800

    9

    Received $2,668 cash from Gomez Co. as full payment on its account.

    Dr Cash ................ $2,668

    Cr Sundry Debtors ........................... $2,668

    11

    Completed a five-day project for Alex’s Engineering Co. and billed it $5,500, which is the total price of $7,000 less the advance payment of $1,500.

    Dr Sundry Debtors ............. $5,500

    Dr Advance payment ......... $1,500.

    Cr Sales .................................................. $7,000

    13

    Sold merchandise with a retail value of $5,200 and a cost of $3,560 to Liu Corp., invoice dated

    Dr Sundry Debtors ........... $5,200

    Cr Sales ................................................. $5,200

    January 13.

    15

    Paid $600 cash for freight charges on the merchandise purchased on January 7.

    Dr Freight on purchases .......... $600

    Cr Cash ................................................ $600

    16

    Received $4,000 cash from Delta Co. for computer services provided.

    Dr Cash .......................... $4,000

    Cr Sales/Services ............................... $4,000

    17

    Paid Kansas Corp. for the invoice dated January 7, net of the discount.

    Dr Sundry Creditors

    Cr Cash

    Cr Discount received

    20

    Liu Corp. returned $500 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $320 cost, is discarded. (The policy of Success Systems is to leave the cost of defective products in cost of goods sold.)

    Dr Sales Returns ............ $500

    Cr Sundry Debtors ........................ $500

    22

    Received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise.

    Dr Cash

    Cr Sundry Debtors

    The entry of earlier date would have already reduced the balance of Sundry Debtors.

    24

    Returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $496.

    Dr Sundry Creditors

    Cr Purchases Returned

    26

    Purchased $9,000 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26.

    Dr Purchases ................. $9,000

    Cr Sundry Creditors ....................... $9,000

    26

    Sold merchandise with a $4,640 cost for $5,800 on credit to KC, Inc., invoice dated January 26.

    Dr Sundry Debtors ............... $5,800

    Cr Sales .................................................... $5,800

    29

    Received a $496 credit memorandum from Kansas Corp. concerning the merchandise returned on January 24.

    31

    Paid cash to Lyn Addie for 10 days’ work at $125 per day

    Dr Wages ..................... $1250

    Cr Cash ....................................... $1250

    .

    Source(s): Accountancy ...
  • 4 years ago

    Your answer: If you pay a utility bill out of your cash account then you have a Utility Expense for $500 on March 31. You need to "credit" or decrease the Cash account; the only balancing entry would be Cash $500. Explanation: 1) These journal entries follow a specific format: Date, Debit entry, Credit entry. 2) Depending on the class of account listed, you debit the first account listed and credit the second account listed. 3) Debits increase Asset and Expense accounts like Cash, Office Equipment, A/R, Office Supplies etc; Credits increase Liabilities, Equity and Revenue accounts like Accounts Payable and Services Revenue 4)Thus the last journal entry reads March 31, Utilities Expense (debit) $500. The only balancing entry is to decrease (Credit) Cash $500.

  • 3 years ago

    It's a good question

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