Quality Appliance Service is a service enterprise. the account balances for Qual
ID: 2546572 • Letter: Q
Question
Quality Appliance Service is a service enterprise. the account balances for Quality Appliance Service as of the current date are as follows:
Cash- 248,658.10
Accounts recievable- 217,700.00
Supplies and parts- 192,050.00
Prepaid insurance- 34,400.00
Land- 82,000.00
Building- 142,000.00
Accumulated depreciation- building 19,200
Vehicles- 66,000.00
Accumulated depreciation- vehicles 20,000
equipmment- 27,800
Accumulated depreciation- Equipment 8,800.00
Accounts payable- 68,395.00
Wages and salaries payable- 6,900.00
Payroll taxes payable- 14,001.50
I.M. serviceman, capital- 817,450.00
I.M. serviceman, drawing- 26,000
Service fees earned- 337,600
Wages and salaries expense- 96,845.00
Payroll tax expense- 7,364.80
Supplies and parts expense- 70,500.00
Insurance Expense- 11,467.00
Telephone expense- 1,548.00
Utilities expense- 14,739.00
Depreciation expense- Vehicles 1,250.00
Depreciation expense- Equipment 550.00
Depreciation expense- Building 1,200.00
Repair expense- 44,200.60
Miscellaneous expense- 6,074.00
Debit Total- 1,292,346.50. Credit total- 1,292, 346.50
During the following month, the following transactions were completed:
1. Recieved a $46,000 check from Hotpoint Sales on account.
2. Recieved a $285 cash from a customer for appliance repair services provided.
3. The customer above returned the appliance that we repaired and stated that the repair work was not satisfactory. we gave them a cash refund of $200.
4. Purchased $7,246 of parts and supplies from Motor and Transmission Supply on account.
5. Paid the telephone bill $250.
6. Sent a check for $11,365 to Belt and Hose Supply on account.
7. Billed Whirlpool Sales $4,365 for appliance repair services provided on account.
8. A portion of the supplies purchased from Motor and Transmission Supply did not meet manufacturer specifications for appliance replacement parts. we returned these parts for a credit on our account of $2,060.
9. Recieved a $23,000 check from Kenmore Sales on account.
10. Sent a check for $14,780 to Gasket and Washer Supply on account.
11. Paid the electric bill for the current month of $432.
12. Purchased $386 of parts and supplies on account from Gasket and Washer Supply.
13. Billed Maytag Sales for $1,400 for appliance repair services provided on account.
Prepared payroll checks for the following employees:
Betty J. Jones- Salary of 1307.69
John M. Doe- 80 hours regular time and 10 hours overtime (regular rate $12 per hour, OT 1.5)
Sam R. Public- 80 hours regular time and 4 hours overtime (regular rate $10 per hour, OT 1.5)
Instructions
1. Journalize the 13 transactions using the current rules of debits and credits. You will use the trial balance on the 1st page for your charts of accounts.
Explanation / Answer
Transaction Accounts and Explanation Debit Credit 1 Cash 46000 Accounts receivable 46000 (To record collection on account) 2 Cash 285 Service fees earned 285 (To record service fees earned in cash) 3 Service fees earned 200 Cash 200 (To record fees refunded) 4 Supplies and parts 7246 Accounts payable 7246 (To record parts and supplies purchased on account) 5 Telephone expense 250 Cash 250 (To record payment of telephone bill) 6 Accounts payable 11365 Cash 11365 (To record payment on account) 7 Accounts receivable 4365 Service fees earned 4365 (To record fees earned on account) 8 Accounts payable 2060 Supplies and parts 2060 (To record purchase returns) 9 Cash 23000 Accounts receivable 23000 (To record collection on account) 10 Accounts payable 14780 Cash 14780 (To record payment on account) 11 Utilities expense 432 Cash 4320 (To record payment of electric bill) 12 Supplies and parts 386 Accounts payable 386 (To record parts and supplies purchased on account) 13 Accounts receivable 1400 Service fees earned 1400 (To record fees earned on account) Wages and salaries expense 3307.69 Cash [1307.69+(80 x $12)+(10 x $18)+(80 x $10)+(4 x $15)] 3307.69 (To record payment of salaries and wages)