Answered: Prepare a journal entry for the…

Prepare a journal entry for the purchase of a truck on April 4 for $73,040, paying $4,200 cash and the remainder on account. If an amount box does not require an entry, leave it blank. April 4

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 22EA: Prepare journal entries to record the following transactions. A. March 1, purchased land for cash,...

See similar textbooks

Related questions

Q: lden Corporation has sufficient current E&P. It distributes a land (FMV = $3,000, basis = $4,000) to…

A: Requirement: In the given question it is required to calculate gain or loss, dividend income and…

Q: Transactions for CCA Class 8 assets. Date Item Activity Amount Purchase $50,000 March 11, 2002…

A: By the given information from the table, Transaction for CCA class 8 asset. Also, Product claim for…

Q: Wha is the general journal

A: General Journal is a financial book in which all the business transactions are recorded in…

Q: Nicanor, having a capital of Php 100,000, filed as a non-VAT taxpayer in 2019. The following is a…

A: Taxes are pressured contributions imposed via way of means of a central authority corporation on…

Q: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of…

A: Factory overhead means all type of indirect costs being incurred on production and manufacturing of…

Q: 2) The capital investment required in a certain project is $ 5000. The project production profile is…

A: Dear student as u have asked 4 multiple subparts and as per guideline we will solve first three…

Q: Journal Entries for Sale, Return, and Remittance-Perpetual System On October 14, the Patrick Company…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: The following revenue and expense account balances were taken from the Income Statement columns of…

A: Income statement: The income statement shows the company's revenues and expenses earned during the…

Q: Product Desalinated water Total annual revenue Total revenue Expenses Net Annual Profit (31%) Table…

A: Formulas for solving question Total annual revenue = Price/unit * Estimated production per day *…

Q: Steffi and Leigh form a partnership. Steffi invests $1,000 cash, $2,000 of supplies, inventory with…

A: Lets understand the basics. Partnership is an agreement between two or more person who works…

Q: Units of concrete panels produced and sold Sellling price Direct Materials (volume of concrete)…

A: Operating Income is the difference between the operating revenue and all the expenses related to…

Q: Illustration. The balance sheet of Mateo Roa on Oct. 1, 2021, before accepting Martin Penaco as his…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Depreciation on equipment for the year is $5,760. a. Record the journal entry if the company…

A: Answer :- step 2 in the solution.

Q: February 2 February 7 February 14 Pay $600 for radio advertising for February. Purchase beauty…

A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…

Q: At December 31, 2022 Gordon Inc's actual income tax for the year is $ 15,000. During the year Gordon…

A: Answer : Debit to Income Tax Expense and credit to Income Tax Payable

Q: Explain how a Bonus arrangement can be used to defer the taxes paid by an employer?

A: Taxes: Taxes are the amounts reimbursed by the taxpayers in accordance with the appropriate slab…

Q: The ledger of Casper Consulting at January 31, 2014 includes the following selected accounts: Debit…

A: Adjusting Entries- An adjusting journal entry is one that occurs in a company's general ledger at…

Q: On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P…

Q: A fixed capital investment of ₱11,000,000 is required for a proposed manufacturing plant and an…

A: The rate of return is the percentage measure of the earnings of the company with respect to the…

Q: Learning Task 2: Journalize the entries for the following adjustments on December 31, the ed of the…

A: Adjusting entries are made at the year-end after the preparation of the unadjusted trial balance.…

Q: During the first month of operations, the following transactions occurred for Blossom Inc.: Apr. 1…

A: Salary is the expense of a business. As per the golden rule of accounting, the expense is debited.…

Q: Maria Tallchief is a single taxpayer, age 27 (birthdate May 18, 1994) living at 543 Space Drive,…

A: A form that is used by a taxpayer to file his or her annual income tax return in the United States…

Q: Division A and Division B are divisions within the same company. The managers of both divisions are…

A: The price at which connected entities transact with one another, such as during the trade of goods…

Q: On September 1, a corporation had 100,000 shares of $2 par value common stock, and $1,000,000 of…

A: When an organization increases the number of its stocks to enhance the stock's liquidity is known as…

Q: Question 2 of 40 Paul and Sam Jones, two brothers, decide to start a landscaping business. Paul…

A: Statement of Owner's Equity - Statement of owner's equity includes the amount contributed by the…

Q: Mountain Dental Services is a specialized dental practice whose only service is filling cavities.…

A: High-low method is used in costing to segregate fixed and variable costs. Following formula is used…

Q: In almost all cases, making contributions to an RRSP will provide the deferral of income tax. In…

A: Introduction: RRSP (Registered Retirement Savings Plan): A (RRSP) is a retirement funds plan where…

Q: Business of Zeo Itd. As on 31st March 2018 Liabilities Amount (P) Asset Amount (P) Share capital…

A: A company's goodwill is an intangible asset that increases its value. Goodwill is affected by…

Q: Which of the following statements regarding asset ceilings for overfunded and underfunded pension…

A: A firm retirement plan with more assets than obligations is known as an overfunded pension plan…

Q: community is 6.5%, what was the selling price for the basketball before taxes?

A: The sales tax means the tax that is charged on the selling price of the goods. It is an addition to…

Q: is shown below: Mateo Roa Balance Sheet October 1, 2021 Assets Cash P 60,000 30,000 Notes Receivable…

A: Assets revaluation account Profit/loss on revaluation Loss on merchandise inventory 6000 Loss…

Q: Cromwell Company is a distributor that sells products to retail companies. The company sells one…

A: Purchase during a month=sales in that month+closing inventory-opening inventory purchase price per…

Q: Assets Dec 31, 2021 $117,000 24,000 DCIT. 202 $19,500 Cash Notes Receivable Supplies & Inventory…

A: The Operating and Investing section for the year ended December 31st, 2021 is as below.

Q: Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. -…

A: It refers to a modern accounting method which is used to record business transaction in a debit…

Q: 1. Determine the total incremental cost of making 70,000 units of RX5. 2. Determine the total…

A: Incremental Cost is the cost which is incurred due to the production of additional units of the…

Q: Income statement?

A: Income statememt is a part of financial statements. It is prepared by the entities to find out their…

Q: This is the situation where liquidation value is considered for industries which purpose are related…

A: The liquidation of any company is the process to wind up the company so because they loss money -…

Q: On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P 3M.…

A: With 10% market rate of interest, the carrying value of bond is P 4973704

Q: D6) Finance What are the costs of extending trade credit? (Be specific please)

A: Trade credit is the credit or kind o loan given to the customers of the business for delaying the…

Q: Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. -…

A: The stock split is not recorded as journal entry in the books, as it does not effect the amount of…

Q: Question 8 One of the characteristics of a general partnership is voluntary association. O True O…

A: The answer for the true or false question and relevant explanation are presented hereunder :…

Q: Units of concrete panels produced and sold Sellling price Direct Materials (volume of concrete)…

A: In this question, change in operating income is asked. Operating Income is sales revenue left after…

Q: Joe Refreh Ltd. began with retained earnings of $400,000. The company earned $150,000 during the…

A: Retained earnings are accumulated net profits earned by an entity till date and forms part of…

Q: to the partners All has a capital balance of $(10,000), Basel has a A Base and Ziad are sharing…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: Illustration. The balance sheet of Mateo Roa on Oct. 1, 2021, before accepting Martin Penaco as his…

A: A partnership is a kind of business structure in which two or more people agree to carry out…

Q: Contribution Margin Willie Company sells 39,000 units at $33 per unit. Variable costs are $22.11…

A: a. Contribution margin ratio = $33-$22.11$33×100=33% b. Unit contribution margin = $33-$22.11 =…

Q: On June 30, 2018, Mr. De Guzman received P50,000 as advance rental for 6 months. Gi the adjusting…

A: Adjusting Journal Entries: These are the journal entries which are recorded at the end of accounting…

Q: Number Cost of Units per Unit Beginning inventory 130 $71 Purchased goods during the period 240 80…

A: Goods available for sale means the goods that are produced or available with the entity for the…

Q: A corporation issued 6,000 shares of its $10 par value common stock in exchange for land that has a…

A: Common stock means the amount raised against which the dividend is paid but after paying interest on…

Q: Jenny owns a large-scale swimming school - Women On Water. To become a member and student,…

A: Sales budget Labour budget A budgeted Income Statement

Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

Prepare a journal entry for the purchase of a truck on April 4 for $73,040, paying $4,200 cash and the remainder on account.
If an amount box does not require an entry, leave it blank.
April 4

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 : Notes

VIEW

Step 2 : Journal entry for the purchase of truck

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Cash and cash equivalents

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Prepare journal entries to record the following transactions. A. March 1, purchased land for cash, $20,000 B. March 11, purchased merchandise inventory, on account, $18,500 C. March 15, Sold merchandise to customer for cash, $555
Prepare journal entries to record the following transactions. Create a T-account for Supplies, post any entries that affect the account, and tally ending balance for the account (assume Supplies beginning balance of $6,550). A. January 26, purchased additional supplies for cash, $9,500 B. December 31, actual count of supplies, $8,500
Prepare journal entries to record the following transactions. Create a T-account for Accounts Payable, post any entries that affect the account, and tally ending balance for the account. Assume an Accounts Payable beginning balance of $5,000. A. February 2, purchased an asset, merchandise inventory, on account, $30,000 B. March 10, paid creditor for part of February purchase, $12,000
Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5. B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18. C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%. D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.
Journalizing and posting On February 11, 20Y9, Quick Fix Company purchased 2,250 of supplies on account. In Quick Fixs chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21. a. Journalize the February 11, 20Y9, transaction on page 73 of Quick Fix Companys two-column journal. Include an explanation of the entry. b. Prepare a four-column account for Supplies. Enter a debit balance of 400 as of February 1, 20Y9. Place a check mark () in the Posting Reference column. c. Prepare a four-column account for Accounts Payable. Enter a credit balance of 18,300 as of February 1, 20Y9. Place a check mark () in the Posting Reference column. d. Post the February 11, 20Y9, transaction to the accounts. e. Do the rules of debit and credit apply to all companies?
On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
Prepare journal entries to record the following business transaction and related adjusting entry. A. January 12, purchased supplies for cash, to be used all year, $3,850 B. December 31, physical count of remaining supplies, $800
Review the following transactions, and prepare any necessary journal entries. A. On July 16, Arrow Corp. purchases 200 computers (Equipment) at $500 per computer from a supplier, on credit. Terms of the purchase are 4/10, n/50 from the invoice date of July 16. B. On August 10, Hondo Inc. receives advance cash payment from a client for legal services in the amount of $9,000. Hondo had yet to provide legal services as of August 10. C. On September 22, Jack Pies sells thirty pies for $25 cash per pie. The sales tax rate is 8%. D. On November 8, More Supplies paid a portion of their noncurrent note in the amount of $3,250 cash.
EXPENSE METHOD OF ACCOUNTING FOR PREPAID EXPENSES Ryans 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 adjusting entry.
Prepare journal entries to record the following transactions. Create a T-account for Accounts Payable, post any entries that affect the account, and calculate the ending balance for the account. Assume an Accounts Payable beginning balance of $7,500. A. May 12, purchased merchandise inventory on account. $9,200 B. June 10, paid creditor for part of previous months purchase, $11,350
Office Supplies Somerville Corp. purchases office supplies once a month and prepares monthly financial statements. The asset account Office Supplies on Hand has a balance of $1,450 on May 1. Purchases of supplies during May amount to $1,100. Supplies on hand at May 31 amount to $920. Prepare the necessary adjusting entry on Somervilles books on May 31. What will be the effect on net income for May if this entry is not recorded?
On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business, 18,000. 4.Paid rent for period of October 4 to end of month, 3,000. 10.Purchased a used truck for 23,750, paying 3,750 cash and giving a note payable for the remainder. 13.Purchased equipment on account, 10,500. 14.Purchased supplies for cash, 2,100. 15.Paid annual premiums on property and casualty insurance, 3,600. 15.Received cash for job completed, 8,950. Enter the following transactions on Page 2 of the two-column journal: 21.Paid creditor a portion of the amount owed for equipment purchased on October 13, 2,000. 24.Recorded jobs completed on account and sent invoices to customers, 14,150. 26.Received an invoice for truck expenses, to be paid in November, 700. 27.Paid utilities expense, 2,240. 27.Paid miscellaneous expenses, 1,100. Oct. 29. Received cash from customers on account, 7,600. 30.Paid wages of employees, 4,800. 31.Withdrew cash for personal use, 3,500. Instructions 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Journal entry explanations may be omitted. 2. Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 2019. 4. Determine the excess of revenues over expenses for October. 5. Can you think of any reason why the amount determined in (4) might not be the net income for October?