Prelim1Part2Ver1KEY_1_

Prelim1Part2Ver1KEY_1_ - Ver 1 Part II Journal Entries(60...

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Ver 1 Part II: Journal Entries (60 Points) Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share Problem 1 (20 Points) Record journal entries for the following transactions in the space provided below, as if today were December 1, 2006. In cases where no entry is required, please write "No entry required for this transaction" for your answer to grade correctly. Unless otherwise stated, assume the transaction takes place today (December 1, 2006). a. Borrowed $10,000 cash on a five year, 12 percent note payable, dated December 1, 2006 b. Purchased land for a future building site on credit, $24,000. c. Recorded sales revenue for 2006 totaling $122,000, including $14,000 cash and the balance on credit. d. Sold 1,300 additional shares of capital stock for $1 cash per share. e. Recognized $25,000 in remaining expenses for 2006, including $12,000 on credit. (Use “Remaining Expenses” account) f. Collected accounts receivable, $17,000. g. Purchased additional assets, $13,500 cash (Use the “Remaining Assets” account). h. Paid accounts payable, $9,800. i. Purchased supplies on account for future use, $3,000. j. Jack Little sells 100 shares to his Admin TA, Katie, for $24 per share. He purchased the shares for $30 per share. 1
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Ver 1 Record Journal Entries here: Label General Journal Debit Credit a. Cash Notes Payable $10,000 $10,000 b. Land Mortgage Payable $24,000 $24,000 c. Cash Accounts Receivable Revenue $14,000 $108,000 $122,000 d. Cash Capital Stock or Contributed capital $1,300 $1,300 e. Remaining Expenses Accounts Payable Cash $25,000 $12,000 $13,000 f. Cash Accounts Receivable $17,000 $17,000 g. Additional Assets
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