Give journal entries for the following: On February 1, Your Company’s board authorized 250,000 shares and issued 12,200 shares of $1 par common stock for $170,800 cash. On February 1, Your Company received $142,500 as prepayment for 15 months of consulting services that will be provided evenly over the contract, beginning in October. On March 1, Your Company paid $36,000 in cash as prepayment for 1 year of rent on an office building, beginning in March. On May 1, Your Company’s board authorized 200,000 shares of $50 par, cumulative preferred stock with a 4% coupon rate. It issued 2,000 shares for $100,000 On June 1, Your Company purchased merchandise inventory costing $350,000 on credit, 2/10,n/30. Your Company paid for the inventory on day seven. Your Company repurchased 450 shares of its own common stock from an unhappy shareholder for $15 per share. Your Company sold $85,000 of its inventory for $150,000 on account, terms 2/10, net 30. (Several customers) On December 1, Your Company paid $4,000 for cleaning services for December. Your Company collected $95,000 of its accounts receivable. All of the customers received the discount. On December 31, Your Company recorded $8,000 of salary expense. The employees will be paid on January 15, 2023. Record the year-end entry to recognize service income relating to entry 2. Record the year-end entry to recognize rent expense relating to entry 3. Record the warranty expense. Your Company estimates that this expense will be 5 percent of its cost of goods sold. Record the bad debt expense. Your Company estimates that 3 percent of its credit sales will not be collected.
Give journal entries for the following: On February 1, Your Company’s board authorized 250,000 shares and issued 12,200 shares of $1 par common stock for $170,800 cash. On February 1, Your Company received $142,500 as prepayment for 15 months of consulting services that will be provided evenly over the contract, beginning in October. On March 1, Your Company paid $36,000 in cash as prepayment for 1 year of rent on an office building, beginning in March. On May 1, Your Company’s board authorized 200,000 shares of $50 par, cumulative preferred stock with a 4% coupon rate. It issued 2,000 shares for $100,000 On June 1, Your Company purchased merchandise inventory costing $350,000 on credit, 2/10,n/30. Your Company paid for the inventory on day seven. Your Company repurchased 450 shares of its own common stock from an unhappy shareholder for $15 per share. Your Company sold $85,000 of its inventory for $150,000 on account, terms 2/10, net 30. (Several customers) On December 1, Your Company paid $4,000 for cleaning services for December. Your Company collected $95,000 of its accounts receivable. All of the customers received the discount. On December 31, Your Company recorded $8,000 of salary expense. The employees will be paid on January 15, 2023. Record the year-end entry to recognize service income relating to entry 2. Record the year-end entry to recognize rent expense relating to entry 3. Record the warranty expense. Your Company estimates that this expense will be 5 percent of its cost of goods sold. Record the bad debt expense. Your Company estimates that 3 percent of its credit sales will not be collected.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter11: Accounting For Transactions Using A General Journal
Section: Chapter Questions
Problem 3AP
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On February 1, Your Company’s board authorized 250,000 shares and issued 12,200 shares of $1 par common stock for $170,800 cash. | |||||||||||||||||||||
On February 1, Your Company received $142,500 as prepayment for 15 months of consulting services that will be provided evenly over the contract, beginning in October. | |||||||||||||||||||||
On March 1, Your Company paid $36,000 in cash as prepayment for 1 year of rent on an office building, beginning in March. | |||||||||||||||||||||
On May 1, Your Company’s board authorized 200,000 shares of $50 par, cumulative |
|||||||||||||||||||||
On June 1, Your Company purchased merchandise inventory costing $350,000 on credit, 2/10,n/30. | |||||||||||||||||||||
Your Company paid for the inventory on day seven. | |||||||||||||||||||||
Your Company repurchased 450 shares of its own common stock from an unhappy shareholder for $15 per share. | |||||||||||||||||||||
Your Company sold $85,000 of its inventory for $150,000 on account, terms 2/10, net 30. (Several customers) | |||||||||||||||||||||
On December 1, Your Company paid $4,000 for cleaning services for December. | |||||||||||||||||||||
Your Company collected $95,000 of its |
|||||||||||||||||||||
On December 31, Your Company recorded $8,000 of salary expense. The employees will be paid on January 15, 2023. | |||||||||||||||||||||
Record the year-end entry to recognize service income relating to entry 2. | |||||||||||||||||||||
Record the year-end entry to recognize rent expense relating to entry 3. | |||||||||||||||||||||
Record the warranty expense. Your Company estimates that this expense will be 5 percent of its cost of goods sold. | |||||||||||||||||||||
Record the |
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