Not sure if I posted #2, 3 and 13 correctly. Those are the ones I had trouble with. Please let me know if any of them are incorrect and why. Thank You!
1 On December 1, Rocky Ram, Inc. received $10,000 from Kanga Roo Inc. for partial payment of account. (First entry journalized and posted for you.)
Cash-DB
Accounts Receivable- CR
2 On December 1, Rocky Ram, Inc. received $18,000 in advance for renting office space to Bullwinkle, Inc. for the December 1, 2006 through February 28, 2007.
Cash-DB
Unearned Revenue- CR
3 On December 6, Rocky Ram, Inc. issued checks to Acne Corporation for $10,000, Bow & Arrow, Inc. for $25,000, and Boa Construction Inc. for $17,000 in payment on accounts.
Accounts Payable-DB
Cash-CR
4 On December 10, the company purchased supplies in the amount of $5,000 on account from Boa Construction Inc.
Supplies Expense-DB
Accounts Payable-CR
5 On December 10, Rocky Ram, Inc. received a check in the amount of $30,000 from Poodle & Co. in payment of account.
Cash-DB
Accounts Receivable-CR
6 On December 15, Rocky Ram, Inc. made a sale in the amount of $130,000 to Poodle & Co (terms 2/10, n/30). The cost of the inventory sold was $50,000.
Accounts Receivable-DB 130,000
Sales Revenue-CR 130,000
COGS-DB 50,000
Merchandise Inventory-CR 50,000
7 On December 17, Board of Directors declared $8,200 in dividends to be paid later.
Dividends- DB
Dividends Payable-CR
8 On December 20, the company paid employees $31,000 for wages earned during the period from December 1 through December 15, 2006.
Wages & Salaries Expense-DB
Cash-CR
9 On December 25, received full payment from Poodle & Co. for sale made December 15, within the discount period.
Cash-DB 127,400
Sales Discount-CR 2,600
Accounts Receivable-CR 130,000
10 On December 25, Rocky Ram, Inc. made a sale in the amount of $150,000 to Bulldog Inc. (terms 2/10, n/30). The cost of the inventory sold was $90,000.
Accounts Receivable-DB 150,000
Sales Revenue-CR 150,000
COGS- DB 90,000
Merchandise Inventory- CR 90,000
11 On December 28, Bulldog Inc. returned goods purchased on December 25, in the amount of $15,000. The cost of inventory was $9,000.
Sales Returns & Allowances- DB 15,000
Accounts Receivable-CR 15,000
Merchandise Inventory- DB 9,000
COGS- CR 9,000
12 On December 28, Rocky Ram, Inc. ordered inventory from Bow & Arrow, Inc. in the amount of $60,000 (FOB Destination, terms 2/10, n/30), inventory is expected to arrive sometime in January.
Merchandise Inventory-DB
Accounts Payable- CR
13 On December 31, the company purchased office equipment costing $60,000. They paid $15,000 down on the equipment and signed a promissory note for the remaining balance. The note is due March 31, 2007.
Office Equipment- DB 60,000
Cash- CR 15,000
Notes Payable- CR 45,000
14 On December 31, Rocky Ram, Inc. paid utility bills totaling $12,000 for utilities used during the month of December.
Utilities Expense- DB
Cash- CR
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