Financial Accounting
5th Edition
ISBN: 9781618531650
Author: Thomas Dyckman
Publisher: Cambridge Business Publishers
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Chapter 3, Problem 21ME
a.
To determine
Record the each of the transactions using financial statement effects template.
b.
To determine
Prepare journal entries.
c.
To determine
Prepare T-accounts.
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Prepare the general journal entries for the following transactions.
Mr. Laban Deyro opened his laundry business in Iloilo City on January 2, 2016. The following transactions occurred during the month of January 2016:
DATE
TRANSACTIONS
1/2/16
Invested PHP500,000 to his business. The trade name
1/3/16 Hired Allan and Allie who will manage his business
1/4/16
Collections from various customers for the day- PHP3,000
1/5/16
of the business was "MR. LABANDERO"
Purchase store supplies from Labada Store - PHP10,000
1/7/16 Collections from various customers for the day - PHP8,000
1/8/16 MR. LABANDERO entered into an exclusive contract with Sikat Hotel where the business will do all the laundry of the hotel.
1/9/16 Sikat Hotel availed the services of MR. LABANDERO amounting to PHP15,000. Payment will be made on
January 20, 2016.
1/10/16
Collections from various customers for the day- PHP12,000
1/12/16 Purchase a washing machine amounting to PHP50,000
1/15/16 Collections from various customers…
December 2011, Jillian Powell organized a corporation to provide package delivery services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions during the month of March were as follows:
Dec. 2 Â Â Â Â Â Â The Corporation issued 400,000 shares of capital stock to Jillian Powell in exchange for 800,000 cash.
Dec. 4Â Â Â Â Â Â Â purchased a truck for 450,000. Made a 150,000 cash down payment and issued a note payable for the remaining balance.
Dec. 5 Â Â Â Â Â Â Paid Sloan Properties 25,000 to rent office space for the month.
Dec. 9Â Â Â Â Â Â Â Billed customers 11,300 for services for the first half of March.
Dec. 15 Â Â Â Â paid 7,100 in salaries earned by employees during the first half of March.
Dec. 19     Paid Bill’s Auto 9000 for maintenance and repair services on the company truck.
Dec. 20 Â Â Â Â Collected 38000 of the amounts billed to customers on March 9.
Dec. 28 Â Â Â Â Billed customers 14,400 for services performed during the second half of the month.
Dec. 30     Paid…
Miller Delivery Service completed the following transactions during December 2016:
Dec. 1 Miller Delivery Service began operations by receiving $10,000 cash and a truck with a fair value of $20,000 from Robert Miller. The business issued Miller shares of common stock in exchange for this contribution.
1 Paid $1,000 cash for a four-month insurance policy. The policy begins December 1.
4 Paid $500 cash for office supplies.
12 Performed delivery services for a customer and received $2,000 cash.
15 Completed a large delivery job, billed the customer, $2,500, and received a promise to collect the $2,500 within one week.
18 Paid employee salary, $1,000. 20 Received $15,000 cash for performing delivery services.
22 Collected $800 in advance for delivery service to be performed later.
25 Collected $2,500 cash from customer on account.
27 Purchased fuel for the truck, paying $300 on account. (Credit Accounts Payable)
28 Performed delivery services on account, $700.
29 Paid office rent, $1,600,…
Chapter 3 Solutions
Financial Accounting
Ch. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MCCh. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - Prob. 4QCh. 3 - Prob. 5Q
Ch. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10QCh. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 15QCh. 3 - Prob. 16QCh. 3 - Prob. 17QCh. 3 - Prob. 18QCh. 3 - Prob. 19QCh. 3 - Prob. 20QCh. 3 - Prob. 21MECh. 3 - Prob. 22MECh. 3 - Prob. 23MECh. 3 - Prob. 24MECh. 3 - Prob. 25MECh. 3 - Prob. 26MECh. 3 - Prob. 27MECh. 3 - Prob. 28MECh. 3 - Prob. 29MECh. 3 - Prob. 30MECh. 3 - Prob. 31ECh. 3 - Prob. 32ECh. 3 - Prob. 33ECh. 3 - Prob. 34ECh. 3 - Prob. 35ECh. 3 - Prob. 36ECh. 3 - Prob. 37ECh. 3 - Prob. 38ECh. 3 - Prob. 39ECh. 3 - Prob. 40PCh. 3 - Prob. 41PCh. 3 - Prob. 42PCh. 3 - Prob. 43PCh. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49PCh. 3 - Prob. 50PCh. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - Prob. 53PCh. 3 - Prob. 54PCh. 3 - Prob. 55CPCh. 3 - Prob. 56CPCh. 3 - Prob. 57CPCh. 3 - Prob. 58CP
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- Miller Delivery Service completed the following transactions during December 2016: Dec. 1 Miller Delivery Service began operations by receiving $10,000 cash and a truck with a fair value of $20,000 from Robert Miller. The business issued Miller shares of common stock in exchange for this contribution. 1 Paid $1,000 cash for a four-month insurance policy. The policy begins December 1. 4 Paid $500 cash for office supplies. 12 Performed delivery services for a customer and received $2,000 cash. 15 Completed a large delivery job, billed the customer, $2,500, and received a promise to collect the $2,500 within one week. 18 Paid employee salary, $1,000. 20 Received $15,000 cash for performing delivery services. 22 Collected $800 in advance for delivery service to be performed later. 25 Collected $2,500 cash from customer on account. 27 Purchased fuel for the truck, paying $300 on account. (Credit Accounts Payable) 28 Performed delivery services on account, $700. 29 Paid office rent, $1,600,…arrow_forwardDecember 2011, Jillian Powell organized a corporation to provide package delivery services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions during the month of December were as follows: Dec. 2 The Corporation issued 400,000 shares of capital stock to Jillian Powell in exchange for 800,000 cash. Dec. 4 purchased a truck for 450,000. Made a 150,000 cash down payment and issued a note payable for the remaining balance. Dec. 5 Paid Sloan Properties 25,000 to rent office space for the month. Dec. 9 Billed customers 11,300 for services for the first half of December. Dec. 15 paid 7,100 in salaries earned by employees during the first half of December. Dec. 19 Paid Bill’s Auto 9000 for maintenance and repair services on the company truck. Dec. 20 Collected 3800 of the amounts billed to customers on December 9. Dec. 28 Billed customers 14,400 for services performed during the second half of the month. Dec. 30 Paid 7,500 in salaries earned by employees…arrow_forwardDecember 2011, Jillian Powell organized a corporation to provide package delivery services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions during the month of December were as follows: Dec. 2       The Corporation issued 400,000 shares of capital stock to Jillian Powell in exchange for 800,000 cash. Dec. 4       purchased a truck for 450,000. Made a 150,000 cash down payment and issued a note payable for the remaining balance. Dec. 5       Paid Sloan Properties 25,000 to rent office space for the month. Dec. 9       Billed customers 11,300 for services for the first half of December. Dec. 15     paid 7,100 in salaries earned by employees during the first half of December. Dec. 19     Paid Bill’s Auto 9000 for maintenance and repair services on the company truck. Dec. 20     Collected 3800 of the amounts billed to customers on December 9. Dec. 28     Billed customers 14,400 for services performed during the second half of the month. Dec. 30…arrow_forward
- The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems. Jan. 3 Feb. 10 13 Mar. 12 14 Apr. 3 May 11 13 July 12 Aug. 1 Oct. 5 15 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Sold merchandise on account to Bradford & Co., $24,000. The cost of the goods sold was $14,400. Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods sold was $54,000. Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account. Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) Received from Bradford & Co. the amount due on the note of March 12. Dry Creek Co. dishonored its note dated March 14. Received from Dry Creek Co. the amount owed on the…arrow_forwardWINTER WHOLESALE COMPANY BEGAN OPERATIONSON AUGUST, 2021. THE FOLLOWING TRANSACTIONS TOOK PLACE DURING THE MONTH OF AUGUST A. OWNERS INVESTED P 50,000 CASH IN THE CORPORATION IN EXCHANGE FOR 5,000 SHARES OF EQUITY CAPITAL B. EQUIPMENT WAS PURCHASED FOR P 20,000 CASH C. ON THE FIRST DAY OF AUGUST, P 6,000 RENT ON A BUILDING WAS PAID FOR THE MONTHS OF AUGUST AND SEPTEMBER. D. MERCHANDISE COSTING P 38,000 WAS PURCHASED ON ACCOUNT. THE COMPANY USES PERPETUAL INVENTORY SYSTEM. E. P 30,000 WAS BORROWED FROM A LOCAL BANK, AND A NOTE PAYABLE WAS SIGNED F. CREDIT SALES FOR THE MONTH WERE P 40,000. THE COST OF MERCHANDISE SOLD WAS P 22,000. G. P 15,000 WAS COLLECTED ON ACCOUNT FROM CUSTOMERS H. P 20,000 WAS PAID ON ACCOUNT TO SUPLIERS OF MERCHANDISE I. SALARIES OF P7,000 WERE PAID TO EMPLOYEES FOR AUGUST J. A BILL FOR P 2,000 WAS RECEIVED FROM A LOCAL UTILITY COMPANY FOR THE MONTH OF AUGUST K. P 20,000 CASH WAS LOANED TO ANOTHER COMPANY, EVIDENCED BY A NOTE RECEIVABLE. L. THE CORPORATION PAID…arrow_forwardThe Moon Service Inc. engaged in the following transactions during the month of November 2015: 01: Issued 20,000 shares of common stockat $20 per share 03: Paid office rent for the month of November $500. 06: Purchased office supplies $250. 12: Purchased office equipment on account $4,500 16: Purchased business car for $25,000. Paid $10,000 cash and issued a note for the balance. 21: Billed clients $24,000 on account. 25: Declared dividends $3,000. The amount of dividends will be distributed in December. 28: Paid utility bills for the month of November $180. 29: Received $20,000 cash from clients billed on November 21. 30: Paid salary for the month of November $7,500 Required: Record the above transactions in a general journal.arrow_forward
- The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer Co. sells and installs home and business security systems. Jan. 3 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10 Sold merchandise on account to Bradford & Co., $24,000. The cost of the merchandise sold was $14,400.  13 Sold merchandise on account to Dry Creek Co., $60,000. The cost of merchandise sold was $54,000. Mar. 12 Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account.  14 Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Apr. 3 Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account. Use a compound journal entry with debits before credits.) May 11 Received from Bradford & Co. the amount due on the note of March 12.  13 Dry Creek Co.…arrow_forwardThe Moon Service Inc. engaged in the following transactions during the month of November 2015:• Nov. 01: Issued 20,000 shares of common stock at $20 per share• Nov. 03: Paid office rent for the month of November $500.• Nov. 06: Purchased office supplies $250.• Nov. 12: Purchased office equipment on account $4,500• Nov. 16: Purchased business car for $25,000. Paid $10,000 cash and issued a note for the balance.• Nov. 21: Billed clients $24,000 on account.• Nov. 25: Declared dividends $3,000. The amount of dividends will be distributed in December.• Nov. 28: Paid utility bills for the month of November $180.• Nov. 29: Received $20,000 cash from clients billed on November 21.• Nov. 30: Paid salary for the month of November $7,500Required: Record the above transactions in a general journal.arrow_forwardThe following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems. Jan. 3 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10 Sold merchandise on account to Bradford & Co., $24,000. The cost of the goods sold was $14,400. 13 Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods sold was $54,000. Mar. 12 Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account. 14 Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Apr. 3 Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11 Received from Bradford & Co. the amount due on the note of March 12. 13 Dry Creek Co. dishonored its note dated March 14. July 12 Received from Dry Creek Co. the amount…arrow_forward
- The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems. Jan. 3 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10 Sold merchandise on account to Bradford & Co., $24,000. The cost of the goods sold was $14,400. 13 Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods sold was $54,000. Mar. 12 Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account. 14 Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Apr. 3 Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11 Received from Bradford & Co. the amount due on the note of March 12. 13 Dry Creek Co. dishonored its note dated March 14. July 12 Received from Dry Creek Co. the amount…arrow_forwardCarlos Ramirez and Camila Garza organized New World Book Store as a corporation; each contributed $80,000 cash to start the business and received 4,000 shares of common stock. The store completed its first year of operations on December 31, 2014. On that date, the following financial items for the year were determined: December 31, 2014, cash on hand and in the bank, $75,600; December 31, 2014, amounts due from customers from sales of books, $39,000; unused portion of store and office equipment, $73,000; December 31, 2014, amounts owed to publishers for books purchased, $12,000; one-year note payable to a local bank for $3,000. No dividends were declared or paid to the stockholders during the year. Complete the following balance sheet as of the end of 2014. 2. What was the amount of net income for the year? (Hint: Use the retained earnings equation [Beginning Retained Earnings + Net Income − Dividends = Ending Retained Earnings] to solve for net income.)arrow_forwardThe following transactions occurred during 2016 for the Beehive Honey Corporation: Feb. 1 Borrowed $12,000 from a bank and signed a note. Principal and interest at 10% will be paid on January 31, 2017. Apr. 1 Paid $3,600 to an insurance company for a two-year fire insurance policy. July 17 Purchased supplies costing $2,800 on account. The company records supplies purchased in an asset account. At the year-end on December 31, 2016, supplies costing $1,250 remained on hand. Nov. 1 A customer borrowed $6,000 and signed a note requiring the customer to pay principal and 8% interest on April 30, 2017. Required: 1. Record each transaction in general journal form. Omit explanations. 2. Prepare any necessary adjusting entries at the year-end on December 31, 2016. No adjusting entries were recorded during the year for any item.arrow_forward
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