College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 14A, Problem 1SEB
EXPENSE METHOD OF ACCOUNTING FOR PREPAID EXPENSES Ryan’s Fish House purchased supplies costing $3,000 for cash. This amount was debited to the supplies expense account. At the end of the year, December 31, 20--, an inventory showed that supplies costing $500 remained. Prepare the
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Roger Company completed the following transactions during Year 1. Roger's fiscal year ends on December 31.
January 8 Purchased merchandise for resale on account. The invoice amount was $14,840; assume a perpetual
inventory system.
Paid January 8 invoice.
Borrowed $60,000 from National Bank for general use; signed a 12-month, 13% annual interest-bearing
note for the money.
Purchased merchandise for resale on account. The invoice amount was $17,320.
Paid June 3 invoice.
Rented office space in one of Roger's buildings to another company and collected six months' rent in
advance amounting to $21,000.
December 20 Received a $240 deposit from a customer as a guarantee to return a trailer borrowed for 30 days.
December 31 Determined wages of $10,400 were earned but not yet paid on December 31 (disregard payroll taxes).
Required:
January 17
April 1
June 3
July 5
August 1
1. Prepare journal entries for each of these transactions.
2. Prepare the adjusting entries required on December 31.
3. Show…
Roger Company completed the following transactions during Year 1. Roger’s fiscal year ends on December 31.
Jan.
8
Purchased merchandise for resale on account. The invoice amount was $14,780; assume a perpetual inventory system.
17
Paid January 8 invoice.
Apr.
1
Borrowed $54,000 from National Bank for general use; signed a 12-month, 10% annual interest-bearing note for the money.
June
3
Purchased merchandise for resale on account. The invoice amount was $17,420.
July
5
Paid June 3 invoice.
Aug.
1
Rented office space in one of Roger’s buildings to another company and collected six months’ rent in advance amounting to $6,000.
Dec.
20
Received a $180 deposit from a customer as a guarantee to return a trailer borrowed for 30 days.
31
Determined wages of $9,200 were earned but not yet paid on December 31 (disregard payroll taxes).
Show how all of the liabilities arising from these transactions are reported on the balance sheet at December 31.…
Oswego Clay Pipe Company sold $45,800 of pipe to Southeast Water District 45 on April 12 of the current year with terms 2/15./60. Oswego uses the gross method of accounting for sales discounts. What entry would Oswego make on June 10, assuming the customer made the correct payment on that date?
Chapter 14A Solutions
College Accounting, Chapters 1-27
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