ACCT-201 Study Guide - Accrued Interest, Income Statement, Accounts Payable
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The followingtransactions apply to Midsouth Equipment Sales Corp. for 2014: |
1. | The business was started when Midsouth received $48,500 from theissue of common stock. |
2. | Purchased$176,000 of merchandise on account. |
3. | Sold merchandise for $197,500 cash (not including sales tax).Sales tax of 7 percent is collected when the merchandise is sold.The merchandise had a cost of $122,500. |
4. | Provided a six-month warranty on the merchandise sold. Based onindustry estimates, the warranty claims would amount to 4 percentof merchandise sales. |
5. | Paid the salestax to the state agency on $147,500 of the sales. |
6. | On September 1, 2014, borrowed $19,500 from the local bank. Thenote had a 6 percent interest rate and matures on March 1,2015. |
7. | Paid $5,600 forwarranty repairs during the year. |
8. | Paid operatingexpenses of $53,000 for the year. |
9. | Paid $126,000 ofaccounts payable. |
10. | Recorded accrued interest at the end of the year. What is the total amount of current liabilities at December 31,2014? |
Please fill out the table below with the given information.
The following were selected from among the transactionscompleted by Babcock Company during November of the currentyear:
Nov. | 3 | Purchased merchandise on account from Moonlight Co., list price$85,000, trade discount 25%, terms FOB destination, 2/10, n/30. |
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4 | Sold merchandise for cash, $37,680. The cost of the merchandisesold was $22,600. | |
5 | Purchased merchandise on account from Papoose Creek Co.,$47,500, terms FOB shipping point, 2/10, n/30, with prepaid freightof $810 added to the invoice. | |
6 | Returned $13,500 ($18,000 list price less trade discount of 25%)of merchandise purchased on November 3 from Moonlight Co. | |
8 | Sold merchandise on account to Quinn Co., $15,600 with termsn/15. The cost of the merchandise sold was $9,400. | |
13 | Paid Moonlight Co. on account for purchase of November 3, lessreturn of November 6. | |
14 | Sold merchandise on VISA, $236,000. The cost of the merchandisesold was $140,000. | |
15 | Paid Papoose Creek Co. on account for purchase of November5. | |
23 | Received cash on account from sale of November 8 to QuinnCo. | |
24 | Sold merchandise on account to Rabel Co., $56,900, terms 1/10,n/30. The cost of the merchandise sold was $34,000. | |
28 | Paid VISA service fee of $3,540. | |
30 | Paid Quinn Co. a cash refund of $6,000 for returned merchandisefrom sale of November 8. The cost of the returned merchandise was$3,300. |
Journalize the transactions. Refer to the Chart of Accountsfor exact wording of account titles.
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Babcock Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journalize the transactions. Refer to the Chart of Accountsfor exact wording of account titles.
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JOURNAL
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