Quarter 3 – Opening Entries: • Purchase more supplies for $100 with cash • Colle
ID: 2444916 • Letter: Q
Question
Quarter 3 – Opening Entries:
• Purchase more supplies for $100 with cash
• Collected $350 as a deposit from customer
• Purchased a building for headquarters $1000 and signed a 10 year note payable with 6% APR
• Pay $500 towards A/P payable
• Collect $300 from A/R
• Write off an A/R of $30
• Purchase another 10 units for $14 each on account
• Invest another $150 into your investment account
Optional Transactions:
• Sell another 100 shares $30 each if you made a profit in Q2 or $25 each if you incurred a loss
• Borrow up to $5000. Interest rate = 5%
Other information:
• 4 houses allowed per monopoly property
• Bullets trains 2 per railroad costing $100 each. Revenues increase 15% per train.
• Solar plants 2 per utility costing $100 each. Revenues increase 10% per plant
Journal Entries.
Explanation / Answer
Opening Entries Description Debit Credit Purchase $ 100 Cash $ 100 Cash $ 350 Deposits $ 350 Building $ 350 Notes Payables $ 350 Accounts Payables $ 500 Cash $ 500 Cash $ 300 Bills Receivables $ 300 Bad Debts $ 30 Bills Receivables $ 30 Purchase $ 140 Accounts Payables $ 140 Investment $ 150 Cash $ 150 Optional Transactions Description Debit Credit Cash $ 3,000 Shares $ 3,000 Profit $ 500 P & L A/c $ 500 Other Information Description Debit Credit Cash $ 230 Bullets Trains $ 230 Profit $ 30 P & L A/c $ 30 Cash $ 220 Solar Plants $ 220 Profit $ 20 P & L A/c $ 20