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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. Transaction 1. - PowerPoint PPT Presentation
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ACCT 20100 Review Problem
Journal Entries
Transaction 1
Account Debit Credit
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.
Transaction 1
Account Debit Credit
Cash $10,000
Accounts Receivable $ 5,000
Sales $15,000
Cost of Goods Sold $5,000
Inventory $5,000
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.
Transaction 2
Account Debit Credit
Mike Company purchased $15,000 of inventory. All purchases were on account.
Transaction 2
Account Debit Credit
Inventory $15,000
Accounts Payable $15,000
Mike Company purchased $15,000 of inventory. All purchases were on account.
Transaction 3
Account Debit Credit
Mike Company paid salaries, including $1,000 for this month and $1,500 that was payable from last month.
Transaction 3
Account Debit Credit
Salary Expense $1,000
Salaries Payable $1,500
Cash $2,500
Mike Company paid salaries, including $1,000 for this month and $1,500 that was payable from last month.
Transaction 4
Account Debit Credit
Mike Company purchased $500 of supplies. All of these purchases were on account.
Transaction 4
Account Debit Credit
Supplies $500
Accounts Payable $500
Mike Company purchased $500 of supplies. All of these purchases were on account.
Transaction 5
Account Debit Credit
Mike Company collected $2,500 cash from customers who had been granted credit. The entire amount collected relates to sales from last month.
Transaction 5
Account Debit Credit
Cash $2,500
Accounts Receivable $2,500
Mike Company collected $2,500 cash from customers who had been granted credit. The entire amount collected relates to sales from last month.
Transaction 6
Account Debit Credit
Mike Company paid utilities of $500.
Transaction 6
Account Debit Credit
Utilities Expense $500
Cash $500
Mike Company paid utilities of $500.
Transaction 7
Account Debit Credit
Mike Company paid $3,000 to its suppliers related to previous purchases on account.
Transaction 7
Account Debit Credit
Accounts Payable $3,000
Cash $3,000
Mike Company paid $3,000 to its suppliers related to previous purchases on account.
Transaction 8
Account Debit Credit
Mike Company paid $1,500 for this month’s rent.
Transaction 8
Account Debit Credit
Rent Expense $1,500
Cash $1,500
Mike Company paid $1,500 for this month’s rent.
Transaction 9
Account Debit Credit
Mike Company incurred depreciation expense for the month of $2,000.
Transaction 9
Account Debit Credit
Depreciation Expense $2,000
Accumulated Depreciation $2,000
Mike Company incurred depreciation expense for the month of $2,000.
Transaction 10
Account Debit Credit
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.
Transaction 10
Account Debit Credit
Supplies Expense $1,500
Supplies $1,500
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.
Transaction 11
Account Debit Credit
$1,000 of prepaid insurance expired.
Transaction 11
Account Debit Credit
Insurance Expense $1,000
Prepaid Insurance $1,000
$1,000 of prepaid insurance expired.
Transaction 12
Account Debit Credit
Mike Company paid $300 of interest on its long-term debt.
Transaction 12
Account Debit Credit
Interest Expense $300
Cash $300
Mike Company paid $300 of interest on its long-term debt.
Transaction 13
Account Debit Credit
Mike Company incurred $1,000 of salaries expense, but will pay this amount next month.
Transaction 13
Account Debit Credit
Salaries Expense $1,000
Salaries Payable $1,000
Mike Company incurred $1,000 of salaries expense, but will pay this amount next month.
Transaction 14
Account Debit Credit
Mike Company declared and paid $500 in dividends.
Transaction 14
Account Debit Credit
Retained Earnings $500
Cash $500
Mike Company declared and paid $500 in dividends.
