This paper circulates around the core theme of Prepare journal entries to record each of the following transactions. You do not needto write explanations below the journal entries. Create general ledger accounts for each account and post each of the journal entries to an exis together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
- Prepare
journal entries to record each of the following transactions. You do not needto write
explanations below the journal entries.
- Create general
ledger accounts for each account and post each of the journal entries to
an existing general ledger account.
- Prepare
adjusting journal entries as you deem necessary. Besides the information
provided for adjusting journal entries, review the transactions and review
your unadjusted trial balance for any other adjusting journal entries you
may need to prepare.
- Post each of
the adjusting journal entries to the general ledger accounts.
- Prepare
closing entries and post the entries to the general ledger accounts.
- Prepare
trial balances as you deem necessary.
- Prepare the
following financial statements, in their proper format, for the month of
January - Income
statement - Statement
of retained earnings - Balance
sheet - Statement
of Cash Flow
Shocker Electronics is a new company that distributes computer
equipment to retail outlets. The
following information pertains to Shocker Electronics during their first month
of operations:
Suppliers
sales price cost terms
Xtreme
-game systems $ 3,000.00 2,400.00 1%
15, net 30
HP -office systems 2,000.00 1,700.00
1%/20, net/30
Gateway
-home systems 900.00
720.00 2%/10,
net/30
Customers
Cuesta Computer terms 2%/10 net 30
Mustang Computer terms 2%/10 net 30
SLO CPU terms 2%/10 net
30
walk-in customers cash only – no discount
Jan 1 Issued
10,000 shares of $1 par value common stock for $15 per share.
Jan 1 Made
a $50,000 down payment and signed a $600,000 mortgage to purchase land and
building, which will be used as the distribution center. The land comprised of
three (3) lots which appraised at $132,000 each ($396,000 total) and the building appraised for $264,000. The
building occupies one (1) lot, one (1) lot will serve as parking and WCD
intends to sell the third lot.
The
loan is a ten (10) year, 8.0% mortgage
requiring monthly payments consisting of principle and interest. The first
payment is due Feb. 1st. Please
attach a loan amortization schedule.
Jan 1 Issued
100 bonds with $1,000 face value and 6% coupon rate. The bonds mature in ten
(10) years and pay interest semi-annually on July 1st and January
1st. The bonds sell at a price to yield an 8% effective interest rate. The effective interest method will be used to
amortize the bond premium or discount. Please attach a bond amortization schedule.
Jan 1 Borrowed
$100,000 from First Bank to purchase shelving for the warehouse. The shelving
cost $100,000 and is expected to last five (5) years. The note is a three (3)
year, 9% note that requires principle and interest payments on the last day of
each month. Please attach a loan
amortization schedule
Jan 1 Purchase inventory
150 systems from Gateway
at $720 per system terms 2%/10,
net/30
100 systems from HP at
$1,700 per system terms
1%/20, net/30
40 systems from Xtreme
at $2,400 per system terms 1%
15, net 30
Jan 1 Paid $1,000 for supplies.
Jan 5 Sold Cuesta Computer sixty (60)Gateway sytstems and forty (40) HP
systems, on account.
Jan 6 Paid Gateway bill in full (in
the discount period)
Jan 10 Sold SLO CPU twenty-five (25)
Xtreme systems.
Jan 14 Received payment in full from
Cuesta Computer (in the discount period).
Jan 14 Sold Mustang Computer fifty (50)
Gateway sytstems and fifty (50) HP systems.
Jan 14 Paid HP bill in full (in the
discount period)
Jan 15 Purchase inventory
75 systems from Gateway
at $720 per system terms 2%/10,
net/30
50 systems from HP at
$1,700 per system terms
1%/20, net/30
25 systems from Xtreme
at $2,400 per system terms
1%/15, net 30
Jan 16 Paid salaries totaling $5,000 for
the first half of the month. In order to make this entry you must know that 15%
was withheld for federal income tax, 5% was withheld for state income tax,
7.65% (6.2% social security and 1.45% medicare) was withheld for FICA. Don’t
forget that the employer is also responsible for matching the employee’s
contribution to FICA. All taxes, both
the employee’s and employer’s, are paid quarterly throughout the year.
Jan 20 Sold Cuesta Computerforty
(40) Gateway systems and forty (40) HP systems, on account.
Jan 22 Sold SLO CPU twenty-five (25)
Xtreme systems.
Jan 23 Received payment in full from
Mustang Computers (in discount period).
Jan 24 Paid Gateway bill in full (in the
discount period)
Jan 25 Received payment in full from SLO
CPU. The first invoice was out of discount period and the second invoice was in
the discount period.
Jan 27 Sold the extra parcel of land,
which was held as an investment, for $125,000.
Jan 28 Paid Xtreme bill in full (first
invoice out of the discount period)
Paid Xtreme bill in full
(second invoice in the discount period)
Jan 29 Paid HP bill in full (in the
discount period)
Jan 29 Received payment in full from
Cuesta Computer (in the discount period).
Jan 30 Sold Mustang Computer fifty (50)
Gateway systems and ten (10)HP systems.
Additional
information
Accounts
Receivable: Accounts receivable are
evaluated at the end of each month. It
is estimated that 2% of all accounts receivable will not be collected.
Inventory: The weighted average cost method is used to
value product purchased from each supplier.
Therefore, you will have to calculate inventory values and cost of goods
sold by supplier. A periodic inventory
system is utilized.
Depreciation on: building – 20 years, straight-line, no
salvage value.
shelving
– 5 years, double declining balance, no
salvage value
Supplies worth $175 are
on hand at the end of the month
Accrue salaries for the second half of
the month (same amount as Jan. 16th salaries). These salaries will be paid on February 1st.
