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Account

The document contains journal entries for various transactions throughout January, May, July, August, September, November and December. It also includes adjustments for depreciation of assets and shows calculations for bank reconciliation using the balance method and determining cost of goods sold using a moving average method.

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Carlos Alphonce
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48 views4 pages

Account

The document contains journal entries for various transactions throughout January, May, July, August, September, November and December. It also includes adjustments for depreciation of assets and shows calculations for bank reconciliation using the balance method and determining cost of goods sold using a moving average method.

Uploaded by

Carlos Alphonce
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Date Account name Debit Credit

Jan 1 Bank of America 41000


Short term debt 41000

Question a) Journal entries

Jan. 1 Bank of America

Capital account

Short term notes


Date Account name Debit Credit
Jan 2 Panda company 1200
payment
Short term note 1200

Jan. 3 Bad debts written off


Date Account name Debit Credit
Jan 3 Wooden corp. 450
Zajel co. 280
Cash 730

Jan. 11 Sales $28,000 to Fire Co.


Date Account name Debit Credit
Jan 11 Fire co. 19600
Discount 8400
Inventory 28000

Jan. 15 Inventory

Date Account name Debit Credit


Jan 15 Inventory 700
Cash 1000
Transaction fee cash 30

Jan. 24 Receivables
Date Account name Debit Credit
Jan 24 Cash 280
Zajel co. 280

On May 1, Equipment
Date Account name Debit Credit
May 1 Equipment 21200
Sales tax 1600
Cash 22800

July. 1 Equipment
Date Account name Debit Credit
July 1 Equipment 5000
Acc. depreciation 1800
Depreciation during 450
the year
Cash 750

Aug. 1 Sales
Date Account name Debit Credit
Aug 1 Sales 440000
Sales taxes 28600
Cash 468600
September 30 Sales 9000
Cash 9000

Nov. 30 Salaries and wages


Date Account name Debit Credit
Nov 30 Salaries and wages 60000
Cash 60000
Taxes FICA 8900
Deferred tax 4590
Rent due
Date Account name Debit Credit
Dec 1 Rent prepaid 6000
Cash 6000

Adjustments
Depreciation of property, plant and equipment
Depreciation of building
(150000-30000)/30 = 4000
Depreciation of equipment
(22800-1800)/ 5 = 4200
Non tangible assets (patents)
9000/10 = 900
Depreciation account
Debit Credit
Equipment 4200
Buildings 4000
Car 1000
Patent 900
Cash 10100

Question b) Double declining schedule


Year Depreciable base Depreciation rate Depreciation expense
1 50000 20% 10000
2 40000 20% 8000
3 32000 20% 6400
4 25600 20% 5120
5 20480 20% 4096

Question c) Bank reconciliation


Bank balance 26130
Note receivable 2200
Deposit on transit 2700
Less Checks (1210)
outstanding
Less NSF fee (680)
Book balance 29100
Unreconciled 40
difference

Question d) Moving average

Purchased Units Unit cost Total purchase Sold units


Beginning 3000 0.60 1800
inventory
Dec 3 4000 0.74 2960
Dec 5 4400
Dec 17 2200 0.8 1600
Dec 20 2100
Total 9200 6360 6500
Moving average 6360/9200 = 6360/(9200-
end of month $0.6913 6500) = $2.3555
After sales

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