John Smith Optical Dispensary completed the following transactions during the latter part of March: Mar. 15 Purchased office supplies on account, $3,000 Mar. 28 Paid $700 on account. Read the requirements. Requirement 1. Journalize the transactions of John Smith Optical Dispensary. Include an explanation with each journal e Mar. 15: Purchased office supplies on account, $3,000. Date Mar. 15 Accounts and Explanation Debit Credit
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Step 1: The initial balances for Accounts Payable and Office Supplies are $3,000 each. Show more…
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a. Corentine Company had $159,000 of accounts payable on September 30 and $136,000 on October 31. Total purchases on credit during October were $288,000. Determine how much cash was paid on accounts payable during October. b. On September 30, Valerian Company had a $106,000 balance in Accounts Receivable. During October, the company collected $106,390 from its credit customers. The October 31 balance in Accounts Receivable was $96,000. Determine the amount of sales on credit that occurred in October. c. During October, Alameda Company had $109,500 of cash receipts and $110,150 of cash disbursements. The October 31 Cash balance was $22,100. Determine how much cash the company had at the close of business on September 30.
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On January 1, 2014, Valdez Company had Accounts Receivable $91,000 and Allowance for Doubtful Accounts $8,100. Valdez Company prepares financial statements annually. During the year, the following selected transactions occurred. Jan. 5: Sold $8,400 of merchandise to Patrick Company, terms n/30. Feb. 2: Accepted an $8,400, 4-month, 10% promissory note from Patrick Company for the balance due. Feb. 12: Sold $13,500 of merchandise to Marguerite Company and accepted Marguerite's $13,500, 2-month, 10% note for the balance due. Feb. 26: Sold $7,000 of merchandise to Felton Co., terms n/10. Apr. 5: Accepted a $7,000, 3-month, 8% note from Felton Co. for the balance due. Apr. 12: Collected Marguerite Company note in full. June 2: Collected Patrick Company note in full. July 5: Felton Co. dishonors its note of April 5. It is expected that Felton will eventually pay the amount owed. July 15: Sold $14,000 of merchandise to Planke Co. and accepted Planke's $14,000, 3-month, 12% note for the amount due. Oct. 15: Planke Co.'s note was dishonored. Planke Co. is bankrupt, and there is no hope of future settlement. Instructions: Journalize the transactions.
Jason Adams opened an accounting office on March 1st. During the first month of business, the following transactions occurred. March 1st: Jason Adams invested $5,000 in his new business. March 1st: Paid $750 for office rent for the month of March. March 3rd: Purchased office equipment for $500 cash. March 8th: Borrowed $5,000 cash from the bank as a note payable. March 10th: Performed $500 of accounting services on account. March 13th: Performed $300 of accounting services, being paid cash. March 20th: Received payment in cash from the March 10th transaction. March 25th: Purchased $200 office supplies on account. March 31st: Paid the following expenses: utilities $150, advertising expenses of $200. March 31st: Jason withdrew $500 for personal use. Using this template, create T-Accounts with the following titles: Cash, Accounts Receivable, Office Supplies, Office Equipment, Accounts Payable, Notes Payable, Owner's Capital, Owner's Withdrawals, Service Revenue, Rent Expense, Advertising Expense, Utilities Expense. Enter all transactions into the T-Accounts. A trial balance total of $11,000 will mean you have completed all transactions perfectly.
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Principles of Accounting Volume 1: Financial Accounting
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