The options for General Journal: No Journal Entry Required Accounts Payable Acco
ID: 2524332 • Letter: T
Question
The options for General Journal:No Journal Entry Required Accounts Payable Accounts Receivable Accumulated Amortization Accumulated Depreciation—?Buildings Accumulated Depreciation—?Equipment Accumulated Depreciation—?Vehicles Advertising Expense Amortization Expense Bad Debt Expense Buildings Cash Common Stock Copyrights Cost of Goods Sold Delivery Expense Depreciation Expense Dividends Dividends Payable Donation Revenue Equipment Franchise Rights Goodwill Income Tax Expense Income Tax Payable Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Legal Expense Licensing Rights Logo and Trademarks Notes Payable (long-term) Notes Payable (short-term) Notes Receivable (long-term) Notes Receivable (short-term) Office Expenses Patents Prepaid Advertising Prepaid Insurance Prepaid Rent Rent Expense Rent Revenue Repairs and Maintenance Expense Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Service Revenue Short-term Investments Software Subscription Revenue Supplies Supplies Expense Travel Expense Unearned Revenue Utilities Expense Vehicles
M2-15 Identifying Transactions and Preparing Journal Entries [LO 2-3] Joel Henry founded Bookmart.com at the beginning of August, which sells new and used books online. He is passionate about books but does not have a lot of accounting experience. a. The company purchased equipment for $4,100 cash. The equipment is expected to be used for 10 or more years b. Joel's business bought $7,100 worth of inventory from a publisher. The company will ay the publisher within 45-60 days. c. Joel's friend Sam lent $4,100 to the business. Sam had Joel write a note promising that Bookmart.com would repay the $4,100 in four months. Because they are good friends, Sam is not going to charge Joel interest d. The company paid $1,550 cash for books purchased on account earlier in the month. e. Bookmart.com repaid the $4,100 loan established in (c). Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Explanation / Answer
Joel's Business General, Journal S.No. Particular Amount (Dr) Amount (Cr) a) Equipment $ 4,100.00 To Cash $ 4,100.00 (Being Amount of Equipment Purchased) b) Inventory $ 7,100.00 To Accounts Payable $ 7,100.00 (Being amount of Merchandise Inventory purchased on account for terms of payment 45-60 days) c ) Cash $ 4,100.00 To Note Payable(short term) $ 4,100.00 (Being amount borrowed against note payable) d) Accounts Payable $ 1,500.00 To Cash $ 1,500.00 (Being amount paid for books purchased ) e) Note payable $ 4,100.00 To Cash $ 4,100.00 (Being amount of loan repaid)