Can someone please help me journalize the following entries? 1. Purchased $123,6
ID: 2486935 • Letter: C
Question
Can someone please help me journalize the following entries?
1. Purchased $123,600 inventory on account. Perpetual is used. 2. Sales made on account to customers for $180,000 plus 5.5% sales tax. Cost of sales were $111,300. 3. Received $10,000 cash down payment for orders to be shipped next year. 4. Issued 10 year, $40,000 face, 8% bonds on 7/2/16 at 103. The bonds pay interest every 1/1 and 7/1. 5. Collected $160,000 on account. 6. Paid other operating expenses of $27,500. 7. Paid $121,030 on account. 8. Paid $8,000 to the state for some of the sales tax collected from customers. 9. On 1/1/16 sold equipment which cost $20,000 with accumulated depreciation of $8,500 for $4,000 cash. 10. Issued 1,100 shares of $100 par 8% preferred stock for $160,000 cash. 11. Purchased equipment on 7/1/16 for $80,000 for cash. 12. Purchased 400 shares of Citikonk common stock from a disgruntled shareholder for $40 per share. 13. Recorded wages and payroll taxes. Gross wages were $20,000, FICA tax was withheld at a 7.55% rate, federal income taxes (FIT) of $2,000 were withheld, state income taxes (SIT) of $500 were withheld. The Federal unemployment tax (FUTA) rate is 0.9% and the state unemployment (SUTA) rate is 3.5%. The net wage checks were given immediately to employees. The payroll taxes will be paid to the IRS and state in early January.Explanation / Answer
Date Particulars Debit Credit 1 Merchandise Inventory 123600 Accounts Payable 123600 2 Accounts Receivables 189900 Sales 180000 Sales Tax Payable 9900 Sales made on account and sales tax recovered = 180000 x 5.5 % , = 9900 Cost of Goods Sold 111300 Merchandise Inventory 111300 Transfer of inventory to cost of goods sold account 3 cash 10000 Unearned Revenue 10000 Unearned revenue recorded 4 Cash 41200 8% Bonds Payable 41200 Issue of $ 40000 bonds at 103 Interest expense 1600 Interest Payable 1600 Interest due at end of year to be payable on 1/ 1 next year 5 Cash 160000 Acccounts Receivables 160000 Amount receivaed ona account 6 Opearating expenses 27500 Cash 27500 opearating expenses paid 7 Accounts Payable 121030 Cash 121030 Amount paid on account 8 Sales Tax Payable 8000 Cash 8000 Amount of saes tax payable paid to state government 9 Cash 4000 Accumulated Depreciation 8500 Loss on sale of asset 7500 Equipment 20000 Equipment of Book Value 11500 ( 20000-8500) sold for 4000 , i.e loss of 7500 10 cash 160000 8% Preferred stock 110000 Paid in capital in excess of par 50000 issue of preferred stock at price in excess of par value 11 Equipment 80000 Cash 80000 equipment purchased 12 Treasury Stock 16000 Cash 16000 Purchase of own common stock 13 Wages expense 20000 FICA Tax withheld 1510 Federral Income Tax withheld 2000 State Income tax withheld 500 Cash 15990 Fica = 20000 x 7.55 % , = 1510 Futa Expense 180 Suta Expense 700 Payroll taxes Payable 880 Amount of unemplyment taxes recorded Futa = 20000 x 0.9 % , = 180 Suta = 20000 x 3.5 % , =700