Journal entries a. $30,000 cash was borrowed on a five-year 10% note payable, dated 5/1/2021. b. $13,000 cash was paid for land. c. Earned $118,000 in service revenues for 2020. $53,000 on account and the remainder in cash. d. Purchased Inventory with $15,000 cash. e. Sold $12,000 of inventory for $17,000 cash. f. Issued 4,000 additional shares of $0.50 par value common stock for cash at $1 per share on 1/2/2021. g. Incurred $114,000 in miscellaneous operating expenses for 2021, $20,000 on credit and the rest paid in cash. h. Collected $34,000 owned on account. i. Purchased $17,000 supplies on account. j. Paid $26,000 accounts payable. k. A piece of equipment costing $3,000 was stolen. The insurance company reimbursed the company $1,000. The accumulated depreciation on the equipment amounted to $1,000 l. Bid on a $2,000 one-year service contract. If accepted, work is to begin on 2/1/2022. m. $103,000 was paid for employee wages. This included wages owed from 2021. n. Declared and paid $2,000 in cash dividends. Adjusting entries: o. $5,000 in supplies remained on 12/31/2021. p. $8,000 depreciation on equipment. q. Interest accrued on notes payable in step a. r. $15,000 in wages were earned but will not be paid until 1/3/2022. s. $2,000 in income taxes for 2021 will be paid in 2022. t. $4,000 was written off during the year. u. $4,000 of A/R is estimated to be uncollectable.
a. $30,000 cash was borrowed on a five-year 10% note payable, dated 5/1/2021.
b. $13,000 cash was paid for land.
c. Earned $118,000 in service revenues for 2020. $53,000 on account and the remainder in cash.
d. Purchased Inventory with $15,000 cash.
e. Sold $12,000 of inventory for $17,000 cash.
f. Issued 4,000 additional shares of $0.50 par value common stock for cash at $1 per share on 1/2/2021.
g. Incurred $114,000 in miscellaneous operating expenses for 2021, $20,000 on credit and the rest paid in cash.
h. Collected $34,000 owned on account.
i. Purchased $17,000 supplies on account.
j. Paid $26,000 accounts payable.
k. A piece of equipment costing $3,000 was stolen. The insurance company reimbursed the company $1,000. The accumulated
l. Bid on a $2,000 one-year service contract. If accepted, work is to begin on 2/1/2022.
m. $103,000 was paid for employee wages. This included wages owed from 2021.
n. Declared and paid $2,000 in cash dividends.
o. $5,000 in supplies remained on 12/31/2021.
p. $8,000 depreciation on equipment.
q. Interest accrued on notes payable in step a.
r. $15,000 in wages were earned but will not be paid until 1/3/2022.
s. $2,000 in income taxes for 2021 will be paid in 2022.
t. $4,000 was written off during the year.
u. $4,000 of A/R is estimated to be uncollectable.
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