Prepare an entry to journalize the following: r. Sold appliances to Zeard Contra
ID: 2341112 • Letter: P
Question
Prepare an entry to journalize the following:
r. Sold appliances to Zeard Contracting for $240,000 (cost, $96,000), receiving a 9-month, 14% note. s. Made payment on account to TNA, $550,000. t. Sold appliances on account to various businesses for $1,030,000, terms n/30 (cost $309,000). Collected $710,000 cash on account. Paid cash for expenses: Salaries, $190,000; Utilities, $9,000 Replenished the petty cash fund when the fund had $117 in cash and petty cash tickets for $149 for office supplies. Bamara withdrew $10,000. Paid the franchise fee to TNA of 7% of total sales of $2,045,000. u. v. w. x. y.Explanation / Answer
Journal entry :
No Account and explanation debit credit r Notes receivable 240000 sales revenue 240000 (To record sales) s Account payable 550000 Cash 550000 (To record amount paid) t Account receivable 1030000 Sales revenue 1030000 (To record sales) u Cash 710000 Account receivable 710000 (To record amount received) v Salary expense 190000 Utilities expense 9000 Cash 199000 (To record expense paid) w Office supplies 149 Cash short and over (117-149) 32 Cash 181 (To record replenishment) x Owner's drawing 10000 Cash 10000 (To record owner's drawing) y Franchise (2045000*7%) 143150 Cash 143150 (To record franchise fees)