# 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.

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 12, Problem 5PB
Textbook Problem
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## 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.

To determine

Concept introduction:

Journal Entry: In journal entry company records all the business transactions which are in monetary form. Company records the transaction on debit and credit in journal entry which are always equal.

To prepare:

Journal Entry In the books of company.

### Explanation of Solution

A. Purchase goods of 8750 (350x25) on credit so in this company debited the purchases account and credited the accounts payable account.

B. Amount received by the customer of 20000 which is debited in the cash account and it is credited in the income received in advance account.

C. Goods sold of 3500 (875x4) plus 6...

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