Prepare journal entries for the following transactions that took place during the year, 2021:   a. Borrowed $50,000 cash on July 1, 2020, signing a two-year, 10% note payable. b. Purchased Land for $54,000 cash on July 1, 2020. c. Earned $50,000 in revenue, including $23,000 in cash and the rest on credit. d. Collected accounts receivable, $15,000. e. Paid wages to employees, $22,000. f. Purchased supplies of $4,500 on account. g. Paid accounts payable, $4,500. h. Recorded depreciation of $2,300 for the year. i. Recorded estimated bad debt expense of $500. j. Determined that only $1,500 of the supplies purchased in f. were on hand at the end of the year.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 17PA: Prepare journal entries to record the following transactions for the month of November: A. on first...
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  1. Prepare journal entries for the following transactions that took place during the year, 2021:

 

a. Borrowed $50,000 cash on July 1, 2020, signing a two-year, 10% note payable.

b. Purchased Land for $54,000 cash on July 1, 2020.

c. Earned $50,000 in revenue, including $23,000 in cash and the rest on credit.

d. Collected accounts receivable, $15,000.

e. Paid wages to employees, $22,000.

f. Purchased supplies of $4,500 on account.

g. Paid accounts payable, $4,500.

h. Recorded depreciation of $2,300 for the year.

i. Recorded estimated bad debt expense of $500.

j. Determined that only $1,500 of the supplies purchased in f. were on hand at the end of the year.

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