ACCT 20100 Review Problem Journal Entries Transaction 1

ACCT 20100 Review Problem Journal Entries

Transaction 1 Mike Company had sales of goods totaling $15, 000, receiving $10, 000 in cash and $5, 000 on account. The cost of goods sole was $5, 000. Account Debit Credit

Transaction 1 Mike Company had sales of goods totaling $15, 000, receiving $10, 000 in cash and $5, 000 on account. The cost of goods sole was $5, 000. Account Debit Cash $10, 000 Accounts Receivable $ 5, 000 Sales Cost of Goods Sold Inventory Credit $15, 000 $5, 000

Transaction 2 Mike Company purchased $15, 000 of inventory. All purchases were on account. Account Debit Credit

Transaction 2 Mike Company purchased $15, 000 of inventory. All purchases were on account. Account Inventory Accounts Payable Debit Credit $15, 000

Transaction 3 Mike Company paid salaries, including $1, 000 for this month and $1, 500 that was payable from last month. Account Debit Credit

Transaction 3 Mike Company paid salaries, including $1, 000 for this month and $1, 500 that was payable from last month. Account Debit Salary Expense $1, 000 Salaries Payable $1, 500 Cash Credit $2, 500

Transaction 4 Mike Company purchased $500 of supplies. All of these purchases were on account. Account Debit Credit

Transaction 4 Mike Company purchased $500 of supplies. All of these purchases were on account. Account Supplies Accounts Payable Debit Credit $500

Transaction 5 Mike Company collected $2, 500 cash from customers who had been granted credit. The entire amount collected relates to sales from last month. Account Debit Credit

Transaction 5 Mike Company collected $2, 500 cash from customers who had been granted credit. The entire amount collected relates to sales from last month. Account Cash Accounts Receivable Debit Credit $2, 500

Transaction 6 Mike Company paid utilities of $500. Account Debit Credit

Transaction 6 Mike Company paid utilities of $500. Account Utilities Expense Cash Debit Credit $500

Transaction 7 Mike Company paid $3, 000 to its suppliers related to previous purchases on account. Account Debit Credit

Transaction 7 Mike Company paid $3, 000 to its suppliers related to previous purchases on account. Accounts Payable Cash Debit Credit $3, 000

Transaction 8 Mike Company paid $1, 500 for this month’s rent. Account Debit Credit

Transaction 8 Mike Company paid $1, 500 for this month’s rent. Account Rent Expense Cash Debit Credit $1, 500

Transaction 9 Mike Company incurred depreciation expense for the month of $2, 000. Account Debit Credit

Transaction 9 Mike Company incurred depreciation expense for the month of $2, 000. Account Depreciation Expense Accumulated Depreciation Debit Credit $2, 000

Transaction 10 After counting its supplies on hand, Mike Company determined that they had $1, 000 in supplies on-hand as of the end of the month. Account Debit Credit

Transaction 10 After counting its supplies on hand, Mike Company determined that they had $1, 000 in supplies on-hand as of the end of the month. Account Supplies Expense Supplies Debit Credit $1, 500

Transaction 11 $1, 000 of prepaid insurance expired. Account Debit Credit

Transaction 11 $1, 000 of prepaid insurance expired. Account Insurance Expense Prepaid Insurance Debit Credit $1, 000

Transaction 12 Mike Company paid $300 of interest on its long-term debt. Account Debit Credit

Transaction 12 Mike Company paid $300 of interest on its long-term debt. Account Interest Expense Cash Debit Credit $300

Transaction 13 Mike Company incurred $1, 000 of salaries expense, but will pay this amount next month. Account Debit Credit

Transaction 13 Mike Company incurred $1, 000 of salaries expense, but will pay this amount next month. Account Salaries Expense Salaries Payable Debit Credit $1, 000

Transaction 14 Mike Company declared and paid $500 in dividends. Account Debit Credit

Transaction 14 Mike Company declared and paid $500 in dividends. Account Retained Earnings Cash Debit Credit $500