ACTG 1P91 Chapter Notes - Chapter 2: Accounts Payable, Promissory Note, Current Liability
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1).Write the Trial Balance
Journal Entries
Date | General Journal | Debit | Credit |
Jan.1 | Cash (16,000 Shares x $18) | $288,000 | |
Common Stock (16,000 Shares x Par $5) | $80,000 | ||
Paid in Capital in Excess of Par - Common Stock (Bal.Fig.) | $208,000 | ||
Jan.1 | Cash (7200 Shares x $42) | $302,400 | |
Preferred Stock (7200 Shares x Par $40) | $288,000 | ||
Paid in Capital in Excess of Par - Preferred Stock (Bal.Fig.) | $14,400 | ||
Jan.31 | Prepaid Insurance | $34,080 | |
Cash | $34,080 | ||
Feb.1 | Equipment | $290,000 | |
Cash | $50,000 | ||
Notes Payable | $50,000 | ||
Common Stock (9500 Shares x Par $5) | $47,500 | ||
Paid in Capital in Excess of Par - Common Stock (Bal.Fig.) | $142,500 | ||
May.1 | Treasury Stock (1200 Shares x $22) | $26,400 | |
Cash | $26,400 | ||
June.1 | Retained Earnings (7200*$40*5%) | $14,400 | |
Preferred Stock Dividend Payable | $14,400 | ||
June.30 | Preferred Stock Dividend Payable | $14,400 | |
Cash | $14,400 | ||
July.1 | Cash | $1,092,880 | |
Bonds Payable (at face value) | $1,000,000 | ||
Premium on Bonds Payable (Bal. figure) | $92,880 | ||
July.30 | Notes Payable | $50,000 | |
Interest Expense (50,000*5%*180/360) | $1,250 | ||
Cash | $51,250 | ||
Aug.1 | Cash (450 Shares x $26) | $11,700 | |
Treasury Stock (450 Shares x Cost $22) | $9,900 | ||
Paid in Capital from Treasury Stock (Bal. figure) | $1,800 | ||
Oct.1 | Equity Investment - Precision Corporation (30000 Shares x $5.10) | $153,000 | |
Commission Expense | $125 | ||
Cash | $153,125 | ||
Oct.16 | Cash (250 Shares x $20) | $5,000 | |
Retained Earnings (Bal. figure) | $500 | ||
Treasury Stock (250 Shares x Cost $22) | $5,500 | ||
Nov.1 | Cash | $36,000 | |
Notes Payable | $36,000 | ||
Dec.15 | Retained Earnings | $26,900 | |
Preferred Stock Dividend (7200*$40*5%) | $14,400 | ||
Common Stock Dividend (0.50*(16000+9500-1200+450+250) | $12,500 | ||
Dec.30 | No Entry on record date | ||
Dec.31 | Accounts Receivable | $1,475,000 | |
Cash | $500,000 | ||
Sales Revenue | $1,975,000 | ||
Dec.31 | Rent | $170,000 | |
Utilities | $13,200 | ||
Salaries | $760,000 | ||
Payroll tax expense | $45,600 | ||
Advertising | $120,000 | ||
Medican Insurance | $32,000 | ||
Commissions | $63,000 | ||
Legal and accounting | $18,000 | ||
Miscellaneous | $8,400 | ||
Cash | $1,200,200 | ||
Accounts Payable | $30,000 | ||
Dec.31 | Interest Expense (Bal figure) | $34,840 | |
Premium on Bonds Payable (92,880/18) | $5,160 | ||
Cash Interest Paid (Face Value 1000,000*8%*1/2 semi annual) | $40,000 | ||
Dec.31 | Cash | $3,000 | |
Equity Investment - Precision Corporation (30,000 Shares x $0.10) | $3,000 | ||
Dec.31 | Equity Investment - Precision Corporation (25,000*30%) | $7,500 | |
Equity Income - Precision Corporation | $7,500 |
- Consider the following financial information for the year ended December 31, 2015 for Henry’s Lobster Shack, a thriving restaurant in Jaco, Costa Rica.
Accounts Payable |
$ 166,000 |
Dividends paid during 2015 |
$ 39,000 |
Wages and Taxes payable |
120,000 |
Other Liabilities |
517,000 |
Cash balance, Jan. 1/15 |
84,000 |
Other Revenues |
21,000 |
Cash balance, Dec. 31/15 |
94,000 |
Property and Equipment |
1,549,000 |
Food and Supplies Expense |
1,415,000 |
Restaurant Sales Revenue |
3,920,000 |
Selling and Admin Expenses |
235,000 |
Utilities and Other Expenses |
1,104,000 |
Food and Supply Inventory |
87,000 |
Wages Expense |
1,087,000 |
Notes Payable |
235,000 |
Retained Earnings, Jan 1/15 |
1,074,000 |
Other Assets |
529,000 |
Henry’s Contributed Capital |
86,000 |
Prepare a set of financial statements for Henry’s Lobster Shack excluding a Statement of Cash Flow. (13 marks)