Known (determinable) current liabilities are set by agreement or laws and are measurable with little uncertainty. Current liabilities are called short term liabilities usually have the obligation due within one year or the company’s operating cycle, whichever is longer. To determine: Prepare Journal entry to record a year end entry $ 10 , 000 of previously unrecorded cash sales and its sales taxes at a rate of 4 % , and record Cost of Sales.

Question

Want to see the full answer?

Answer 1

Question

Chapter 9, Problem 2E

1.

Summary Introduction

Introduction: Known (determinable) current liabilities are set by agreement or laws and are measurable with little uncertainty. Current liabilities are called short term liabilities usually have the obligation due within one year or the company’s operating cycle, whichever is longer.

To determine: Prepare Journal entry to record a year end entry $10,000 of previously unrecorded cash sales and its sales taxes at a rate of 4% , and record Cost of Sales.

2.

Summary Introduction

Introduction: Known (determinable) current liabilities are set by agreement or laws and are measurable with little uncertainty. Current liabilities are called short term liabilities usually have the obligation due within one year or the company’s operating cycle, whichever is longer.

To determine: Record the journal entry earned service revenue.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Question: Banksia Company completed the following transactions during 2018-2019. The annual accounting period ends 30 June 2019.a) Purchased inventory on credit at cost of AUD 16,800; perpetual inventory system is used.b) Received a customer deposit of AUD 18,000 from ABC Ltd for services to be rendered in the future.c) Borrowed AUD 900,000 from the bank on 1 March 2019 by giving the bank a six-month, 9% interest bearing note payable.d) Performed AUD 8,000 of the services paid for by ABC Ltd; the rest will be rendered in August 2019.e) Received the electricity bill for AUD 24,200, which will be paid in early July.f) On 1 June 2019 received rent in advance of AUD 21,600 from XYZ Ltd for a 3 month lease of premises from 1 June until 31 August 2019.g) Wages accrued in the last weekly payroll amounted to AUD 23,000 and will be paid on 5 July 2019.Required:1) Prepare the journal entries for each of these transactions. 2) Prepare all adjusting entries required on 30 June 2019.

HANDOUT PROBLEM for CURRENT LIABILITIES I. Prepare journal entries for the following chronological transactions and a. You sold merchandise on account for $250,000 on account. The products cost $110,000. Your company uses a perpetual inventory system. Your sales included a two-year warranty on the product. You spent $1,400 to repair products in part "a." which were under warranty. On December 31, 2021, you estimated that there would be an additional $8,000 of b. с. repairs on products in part "a." You estimated that $5,000 of the repairs would оссur in 2022. In 2022, you performed $4,800 of repairs on products from part "a." and $1,920 of repairs on products sold in 2022. On December 31, 2022, you estimated that repairs on products sold in 2021 would be an additional $3,500 and for products sold in 2022 would be an additional $9,000. You believe that $5,400 of the $9,000 of repairs would occur d. е. in 2023. II. Based upon the transaction above, determine the amount of current…

Recording Accrued Interest Expense Alaska Inc. borrowed $16,000 by signing a one-year note payable on November 1, 2020. The note bears interest at 10% and interest is payable upon maturity of the note. a. Record this financing transaction on November 1, 2020. b. Record the year-end adjusting entry required on December 31, 2020. Hint: Prorate the annual interest of 10% for two months. c. Record the entry to repay the note on November 1, 2021. Note: Round your answers to the nearest dollar. For example, enter 50 for 50.49 and enter 51 for 50.5