Luke Unlimited Company’s account balances on November 1 are as follows:
Debit Credit
Cash $7,800
Accounts Receivable 12,530
Allowance for Doubtful Accounts $740
Notes Receivable 6,000
Inventory 25,121
Prepaid Insurance 840
Office Supplies 465
Land 74,350
Buildings 66,580
Accumulated Depreciation: Buildings 21,400
Equipment 37,620
Accumulated Depreciation: Equipment 11,480
Patents 25,000
Accounts Payable 38,750
Notes Payable 2,400
Common Stock, no par 165,000
Retained Earnings, January 1 24,958
Sales Revenue 36,833
Cost of Goods Sold 32,000
Sales Salaries Expense 6,200
Office Salaries Expense 4,300
Advertising Expense 1,250
Utilities Expense 1,845
Interest Revenue 550
Interest Expense 210
During the month of November, the following transactions took place:
Date
Transaction
Nov. 2 Made cash sales of $3,400; the cost of the inventory sold was $2,040.
3 Purchased $900 of inventory for cash.
5 Sold an unused 1/2 acre of land for $4,000; the land had originally cost $3,650.
8 Purchased a 2-year comprehensive insurance policy for $528.
12 Leased an unused portion of its building to WebbCo, collecting 6 months’ rent in advance at $220 per month.
13 Made $2,300 of sales on credit to Lauren Company; the cost of the inventory sold was $1,400.
16 Collected the $200 monthly payment plus $30 interest on a customer’s note receivable.
17 Purchased $1,600 of inventory on credit from Katy Company.
20 Purchased land for a future building site. Made a $2,000 down payment and signed a 12%, 90-day, $6,000 note payable for the balance.
23 Collected the Lauren Company account for the November 13 sale.
26 Paid for the November 17 purchase of inventory.
27 Paid the city newspaper $420 for advertising that had appeared during November.
30 Paid $520 of sales salaries and $390 of office salaries.
Required:
1. Prepare general journal entries to record the preceding transactions.
2. Post to general ledger T-accounts.
3. Prepare a trial balance on November 30.
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Ответ:
Luke Unlimited Company
1. General Journal:
See attached document, as the template recorded that the characters are more than 5,000.
2. T-accounts:
Cash Account
Date Description Debit Credit
Nov. 1 Balance $7,800
Nov. 2 Sales Revenue 3,400
Nov. 3 Inventory $900
Nov. 5 Sale of Land 4,000
Nov. 8 Prepaid Insurance 528
Nov. 12 Deferred Rent 1,320
Nov. 16 Notes + Interest 230
Nov. 20 Land 2,000
Nov. 23 Accounts Receivable 2,300
Nov. 26 Accounts Payable 1,600
Nov. 27 Advertising 420
Nov. 30 Sales Salaries 520
Nov. 30 Office Salaries 390
Nov. 30 Balance c/d $12,692
Accounts Receivable
Date Description Debit Credit
Nov. 1 Balance $12,530
Nov. 13 Sales Revenue 2,300
Nov. 23 Cash $2,300
Nov. 30 Balance c/d $12,530
Allowance for Doubtful Accounts
Date Description Debit Credit
Nov. 1 Balance $740
Notes Receivable
Date Description Debit Credit
Nov. 1 Balance $6,000
Nov. 16 Cash $200
Nov. 30 Balance c/d $5,800
Inventory
Date Description Debit Credit
Nov. 1 Balance $25,121
Nov. 2 Cost of goods sold $2.040
Nov. 3 Cash 900
Nov. 13 Cost of goods sold 1,400
Nov. 17 Accounts Payable 1,600
Nov. 30 Balance c/d $24,181
Prepaid Insurance
Date Description Debit Credit
Nov. 1 Balance $840
Nov. 8 Cash 528
Nov. 30 Balance c/d $1,368
Office Supplies
Date Description Debit Credit
Nov. 1 Balance $465
Land
Date Description Debit Credit
Nov. 1 Balance $74,350
Nov. 5 Sale of Land $3,650
Nov. 20 Cash 2,000
Nov. 20 Notes Payable 6,000
Nov. 30 Balance c/d $78,700
Building
Date Description Debit Credit
Nov. 1 Balance $66,580
Accumulated Depreciation: Building
Date Description Debit Credit
Nov. 1 Balance $21,400
Equipment
Date Description Debit Credit
Nov. 1 Balance $37,620
Accumulated Depreciation: Equipment
Date Description Debit Credit
Nov. 1 Balance $11,480
Patents
Date Description Debit Credit
Nov. 1 Balance $25,000
Accounts Payable
Date Description Debit Credit
Nov. 1 Balance $38,750
Nov. 17 Inventory 1,600
Nov. 26 Cash $1,600
Nov. 30 Balance c/d 38,750
Notes Payable
Date Description Debit Credit
Nov. 1 Balance $2,400
Nov. 20 Land 6,000
Nov. 30 Balance c/d $8,400
Common Stock
Date Description Debit Credit
Nov. 1 Balance $165,000
Retained Earnings
Date Description Debit Credit
Nov. 1 Balance $24,958
Sales Revenue
Date Description Debit Credit
Nov. 1 Balance $36,833
Nov. 2 Cash 3,400
Nov. 13 Accounts Receivable 2,300
Nov. 30 Balance c/d $42,533
Cost of Goods Sold
Date Description Debit Credit
Nov. 1 Balance $32,000
Nov. 2 Inventory 2,040
Nov. 13 Inventory 1,400
Nov. 30 Balance c/d $35,440
Sales Salaries Expense
Date Description Debit Credit
Nov. 1 Balance $6,200
Nov. 30 Cash 520
Nov. 30 Balance c/d $6,720
Office Salaries Expense
Date Description Debit Credit
Nov. 1 Balance $4,300
Nov. 30 Cash 390
Nov. 30 Balance c/d $4,690
Advertising Expense
Date Description Debit Credit
Nov. 1 Balance $1,250
Nov. 27 Cash 420
Nov. 30 Balance c/d $1,670
Utilities Expense
Date Description Debit Credit
Nov. 1 Balance $1,845
Interest Expense
Date Description Debit Credit
Nov. 1 Balance $210
Interest Revenue
Date Description Debit Credit
Nov. 1 Balance $550
Nov. 16 Cash 30
Nov. 30 Balance c/d $580
Sale of Land
Date Description Debit Credit
Nov. 5 Land $3,650
Nov. 5 Cash $4,000
Nov. 30 Balance c/d $350
Deferred Rent Revenue
Date Description Debit Credit
Nov. 12 Cash $1,320
3. Trial Balance as of November 30:
Accounts Debit Credit
Cash $12,692
Accounts Receivable 12,530
Allowance for Doubtful Accounts $740
Notes Receivable 5,800
Inventory 24,181
Prepaid Insurance 1,368
Office Supplies 465
Land 78,700
Buildings 66,580
Accumulated Depreciation: Buildings 21,400
Equipment 37,620
Accumulated Depreciation: Equipment 11,480
Patents 25,000
Accounts Payable 38,750
Notes Payable 8,400
Common Stock, no par 165,000
Retained Earnings, January 1 24,958
Sales Revenue 42,533
Cost of Goods Sold 35,440
Sales Salaries Expense 6,720
Office Salaries Expense 4,690
Advertising Expense 1,670
Utilities Expense 1,845
Interest Revenue 580
Interest Expense 210
Sale of Land (Gain) 350
Deferred Rent Revenue 1,320
Total $315,511 $315,511
Ответ:
I believe the best option is A.