accounting problem - 1 Prepare the appropriate journal...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Prepare the appropriate journal entries for these transactions: 2009 entries a. No entry should be made. A line of credit was negotiated, not until the line of credit is actually made should there be an entry. This should be included in the financial statements as a disclosure note. b. Cash .................................................................... 12,000,000 Notes payable ...................................................................... 12,000,000 c. Cash .............................................................................. 2,600 Refundable deposits - liability .......................................................... 2,600 d. Accounts receivable .................................................. 4,346,000 Sales revenue ........................................................................... 4,100,000 Sales tax payable ........................................................................ 246,000 (the state and local sales tax is 3% each for a total of 6% which is multiplied by the sales on account of $4,100,00 to arrive at the sales tax payable of 246,000) e. Interest expense ...............................................................
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern