The following items were selected from among the transactions completed by Emerald Bay Stores Co....
Question:
The following items were selected from among the transactions completed by Emerald Bay Stores Co. during the current year:
| Feb. 15 | Purchased merchandise on account from Hood Co., $144,000, terms n/30. |
| Mar. 17 | Issued a 60-day, 8% note for $144,000 to Hood Co., on the account. |
| May 16 | Paid Hood Co. the amount owed on the note of March 17. |
| June 15 | Borrowed $132,000 from Acme Bank, issuing a 60-day, 9% note. |
| July 21 | Purchased tools by issuing a $117,000, 90-day note to Columbia Supply Co., which discounted the note at the rate of 9%. |
| Aug. 14 | Paid Acme Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $132,000. (Journalize both the debit and credit to the notes payable account.) |
| Oct. 13 | Paid Acme Bank the amount due on the note of August 14. |
| Oct. 19 | Paid Columbia Supply Co. the amount due on the note of July 21. |
| Dec. 1 | Purchased office equipment from Mountain Equipment Co. for $108,000, paying $18,000 and issuing a series of ten 6% notes for $9,000 each, coming due at 30-day intervals. |
| Dec. 12 | Settled a product liability lawsuit with a customer for $61,000, payable in January. Emerald Bay accrued the loss in a litigation claims payable account. |
| Dec. 31 | Paid the amount due Mountain Equipment Co. on the first note in the series issued on December 1. |
1. Journalize the transactions.
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $19,700; (b) interest on the nine remaining notes owed to Mountain Equipment Co.
Journal Entry:
Journal entry is a process that is helpful in converting a large amount of financial data of a company into useful information by sorting and arranging within a specific format.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answer1.
May 16:
{eq}Interest \ expense \ = \ 144,000 \ \times \ \dfrac{30}{360} \ \times \ 8\% \\ Interest \ expense \ = \ \$960 {/eq}
July 10:
{e...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Journal Entries and Trial Balance in Accounting
from
Chapter 3 / Lesson 10
36K
Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.
Related to this Question
- The following items were selected from among the transactions completed by Emerald Bay Stores Co. during the current year: Feb. 15. Purchased merchandise on account from Hood Co., $144,000, terms n/30. Mar. 17. Issued a 60-day, 7% note for $144,000 to Hoo
- The following items were selected from among the transactions completed by Warwick Co. during the current year: Feb. 3 Purchased merchandise on account from Onifade Co., $410,000, terms n/30. Mar. 3 Issued a 45-day, 6% note for $410,000 to Onifade Co., on
- The following items were selected from among the transactions completed by Pioneer Co. during the current year: Mar. 1 Purchased merchandise on account from Galston Co., $360,000, terms n/30 Mar. 31 Issued a 30-day, 5% note for $360,000 to Galston Co., o
- The following items were selected from among the transactions completed by Pioneer Co. during the current year: Mar. 1 Purchased merchandise on account from Galston Co., $390,000, terms n/30. 31 Issue
- The following selected transactions were completed by Silvergate Co. during May of the current year: May 3. Purchased merchandise for, $16,000, terms FOB destination, 2/10, n/30. 6. Issued debit memorandum for $4,000 of merchandise returned from a purcha
- The following are selected 2017 transactions of Marin Corporation. Sept. 1 Purchased inventory from Encino Company on account for $61,800. Marin records purchases gross and uses a periodic inventory system. Oct. 1 Issued a $61,800, 12-month, 8% note to En
- The following are selected 2017 transactions of Sean Astin Corporation. Sept. 1 Purchased inventory from Encino Company on account for $50,000. Astin records purchase gross and uses a periodic inventory system. Oct. 1 Issued a $50,000, 12-month, 8% note
- The following transactions were selected from the records of Evergreen Company: |July 12|Sold merchandise to Wally Butler, who paid the $1,000 purchase with cash. The goods cost Evergreen Company $600
- The following transactions were selected from the records of Evergreen Company: Prepare journal entries to record the following transactions. 12-Jul Sold merchandise to Wally Butler, who paid the $1,0
- The following are selected 2014 transactions of Sean Astin Corporation: Sept. 1: Purchased inventory from Encino Company on account for $57,700. Astin records purchases gross and uses a periodic inve
- The following items were selected from among the transactions completed by Aston Martin Inc. during the current year: Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. May 1. Purchased equipment by issuing a $320,0
- Journalize the entries to record the following selected transactions. Sold $5, 600 of merchandise on account, subject to a sales tax of 5%. The cost of merchandise sold was $3, 300. Paid $38, 400 t
- Journalize the entries to record the following selected transactions. Mar. 1 Sold $63,300 of merchandise on account, subject to a sales tax of 6%. The cost of the merchandise sold was $37,540. Mar.
- Journalize the entries to record the following selected transactions. Mar. 1: Sold $62,800 of merchandise on account, subject to a sales tax of 5%. The cost of the merchandise sold was $37,500. Mar. 2
- The following are selected 2014 transactions of Sean Astin Corporation: Sept. 1 Purchased inventory from Encino Company on account for $59,150. Astin records purchases gross and uses a periodic inven
- The following selected transactions were completed during August of the current year: 1. Billed customers for fees earned, $73, 900. 2.Purchased supplies on account, $1, 960. 3. Received cash from
- The following are selected 2014 transactions of Sean Astin Corporation. September 1. Purchased inventory from Encino Company on account for $59,550. Astin records purchases gross and uses a periodic i
- Journalize the entries to record the following selected transactions: Sold $62,800 of merchandise on account, subject to a sales tax of 5%. The cost of the merchandise sold was $37,500. Paid $39,650 t
- The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer Co. sells and installs home and business security systems. Jan. 3. Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. F
- Journalize the following Transactions. Nov. 3 Purchased merchandise on account from Moonlight Co., list price $88,000, trade discount 20%, terms FOB destination, 2/ 10, n/30. 4 Sold merchandise for c
- The following selected transactions were completed during August of the current year: Aug. 1 Billed customers for fees earned, $74,140. 4 Purchased supplies on account, $2,150. 8 Received cash from cu
- Journalize the entries to record the following selected transactions. A. Sold $640,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $385,000. B. Paid $81,750
- The following items were selected from among the transactions completed by Paulson, Inc. during the current year: Apr 1: Borrowed $60,000 from McCaw Company, issuing a 45-day, 6% note for that amount.
- The following are selected 2017 transactions of Sean Astin Corporation Sep. 1 Purchased inventory from Encino Company on account $ 50,000 Astin records purchases
- The following items were selected from among the transactions completed by Sounds and Sight Stores during the current year: Apr. 7. Borrowed $36,000 from First Financial Company, issuing a 60-day, 8% note for that amount. May 10. Purchased equipment by is
- The following are selected 2007 transactions of Sean Astin Corporation: Sept. 1 Purchased inventory from Encino Company on account for $50,000. Astin records purchase gross and use a periodic invento
- Record the following transactions in a general journal: May & June Transactions: May 4 Merchandise listed at $2,900, less a trade discount of 10%, is purchased on account, credit terms of 1/10, n/30, shipping terms FOB destination. 8 Merchandise purchase
- The following selected transactions were completed during August of the current year: Transactions Aug.1 Billed customers for fees earned $74,050. 4 Purchased supplies on account, $1,970. 8 Received
- During the past two years the following selected transactions occurred for Bass Boats Inc.: Year 1 5-Jan Purchased equipment for $100,000, signing a 9 month, 6% note Payable. 26-Jan Recorded the week's sales of $75,000, 70% on the account and 30% cash. A
- The following transactions were selected from the records of OceanView Company: July 12 Sold merchandise to Customer R, who charged the $3,400 purchase on his Visa credit card. Visa charges OceanView
- Journalize the following transactions in a general journal: May 3 Purchased merchandise from Cintron, $6,500. Invoice No. 321, dated May 1, terms n/30. 9 Purchased merchandise from Mitsui, $2,300. Invoice No. 614, dated May 8, terms 2/10, n/30. 18 Purcha
- The following transactions were selected from the records of OceanView Company: July 12 Sold merchandise to Customer R, who charged the $3,000 purchase on his Visa credit card. Visa charges OceanView
- The following are selected 2014 transactions of Sean Astin Corporation. Sept. 1 - Purchased inventory from Encino Company on account for $53,500. Astin records purch
- Farm Co. provided the following information on selected transactions during 2016: Purchase of land by issuing bonds $500,000 Proceeds from issuing bonds 1,500,000 Purchases of inventory 1,900,000 Purchases of treasury stock 300,000 Loans made to affiliat
- For the following transaction, determine whether the account in the parenthesis is to be debited or credited. Sold merchandise (Merchandise inventory): 1000
- The following were selected from among the transactions completed by Sorento Co. during the current year. Sorento Co. sells and installs home and business security systems. Instructions: Journalize t
- Record the following selected transactions for January in a two-column journal, identifying each entry by letter: (a) Earned $7,000 fees; customer will pay later. (b) Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit (
- Record the following transactions. a. Record the purchase of $30,000 merchandise inventory on account. b. Record the sales of $120,000 to credit customers.
- The following transactions occurred in March of the current year. 5th: Established a Petty Cash fund for $250. 6th: Paid $12.50 COD shipping charges on merchandise for resale, terms FOB shipping poi
- Consider the following transactions : a) Purchased equipment on account for $950 b) Paid $600 on equipment purchased in transaction a) Post transaction (b) to the journal?
- The following are selected 2017 transactions of Windsor Corporation. |Sept. 1 |Purchased inventory from Encino Company on account for $37,600. Windsor records purchases gross and uses a periodic inve
- Enter the following transactions in the proper subsidiary books 2009 Apr 1 - Bought goods from Mr. A. Rs 20,000 less trade discount at 10% Apr 3 - Sold goods to Mr. B Rs 25,000. Trade discount at 5% Apr 5 - Purchased goods Rs 40,000 f
- Range Co. provided the following information on selected transactions during 2018: Purchase of land by issuing bonds to the seller $200 ; Proceeds from issuing bonds $675 ; Purchases of treasur
- The following selected account balances for the City of Hampton on January 1, 20x8 are listed below: Record the following transactions that occurred during 20x8: (a) Current property taxes are levie
- Holly Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during 2016. |Feb. 2 Purchased for cash 5,
- The following transactions were selected from the records of OceanView Company: | July | 12 | Sold merchandise to Customer R, who charged the $3,000 purchase on his Visa credit card. Visa charges OceanView a 2 percent credit card fee. | | 15 | Sold merc
- Consider the following transaction made by Dawn Roberts, a real estate consultant and property manager: Purchased office supplies on credit. Determine the accounts debited and credited in recording the transaction. Choose from the following accounts: |
- The following transactions apply to Park Co. for 2016: 1. Received $50,000 cash from the issue of common stock. 2. Purchased inventory on account for $180,000. 3 . Sold inventory for $250,000 cash tha
- Prepare the general journal entries for the following transactions: Jan. 1: Accepted RunTimeCo's 120-day, 10% note as settlement of an outstanding $15,000 account receivable for goods sold last year. Jan. 15: Purchased $10,000 Equipment from XYZ, signin
- Journalize the following entries to record the selected equity investment transactions completed by Flurry Company during the current year. Flurry's purchase represents less than 20% of the total outs
- Wi-Fi, Inc., has the following selected transactions during the year. Issues $20 million in bonds. Purchases equipment for $80,000. Pays a $20,000 account payable. Collects a $15,000 account receivabl
- Quay Co. had the following transactions during the current period. Instructions: Journalize the transactions.
- Journalize the following merchandise transactions: (a) Sold merchandise on account, $17,300, with terms 2/10, net 30. The cost of the merchandise sold was $12,600. (b) Received payment within the disc
- Selected transactions completed by Primo Discount Corporation during the current fiscal year are as follows: Journalize the transactions.
- Record the following transactions in general journal form. a. Sold merchandise on account to A. Bauer, $680 plus $54.40 sales tax (invoice no. D446). b. Bauer returned $105.50 of the merchandise. Issued credit memo no. 114 for $113.94 ($105.50 for the a
- The following events were completed by Chan's Imports in September 2012. Sept 1. Acquired $60,000 cash from the issue of common stock. Sept 1. Purchased $36,000 of merchandise on account with terms 2/10, n/30. Sept 5. Paid $800 cash for freight to obta
- Sales revenue for a sporting goods store amounted to $539,000 for the current period. All sales are on account and are subject to a sales tax of 11%. Which of the following would be included in the journal entry to record the sales transaction? A. A deb
- Sales revenue for a sporting goods store amounted to $528,000 for the current period. All sales are on account and are subject to a sales tax of 11?%. Which of the following would be included in the journal entry to record the sales? transaction? A. A deb
- The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Journalize the entries to record
- Journalize the entries to record the following selected equity investment transactions completed by Flurry Company during the current year. Flurry's purchase represents less than 20% of the total outs
- The following transactions apply to Park Co. for 2016 Received $32,000 cash from the issue of common stock. Purchased inventory on account for $14
- Bill Diamond owns a business called Diamond Distributors. The following transactions took place during January of the current year. Journalize the transactions in a general journal using the periodic inventory method. Jan. 5 Purchased merchandise on accou
- At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $2,990; Inventory $3,500; and Common Stock $6,490. The following transactions were comp
- The following were selected from among the transactions completed by Hunter Co. during the current year. Hunter Co. sells and installs home and business security systems. \\ *Jan. 15: Loaned $6,000 cash to Dan Hough, receiving a 90-day, 8% note. *Feb. 6
- The following selected transactions are from Ohlm Company. ||2014 |Dec. 16|Accepted a $14,700. 60-day. 9% note dated this day in granting Danny Todd a time extension on his past-due account receivable. |31|Made an adjusting entry to record the accrued int
- Required: Journalize the following merchandise transactions: 1. Mar 1 - Sold merchandise on account, $75,650 with terms 2/10, n/30. The cost of the merchandise sold was $44,450. 2. Mar - 9 Received
- The following selected transactions were completed by Silverado Delivery Service during February: 1. Received cash from owner as additional investment, $25,000. 2. Purchased supplies for cash, $750.
- A firm produces its products by a continuous process involving three production departments, 1 through 3. Present entries to record the following selected transactions related to production during August: (a) Materials purchased on account, $130,000. (b
- Journalize the entries to record the following selected bond investment transactions for Starks Products: a. Purchased for cash $96,000 of Iceline, Inc. 6% bonds at 100 plus accrued interest of $960,
- The following selected transactions relate to cash collections for a firm. Present entries to record the transactions for each of the two days of cash receipts from sales. Required: (a)Actual cash in
- Record the following transactions of Fronke's Fashions in a general journal assuming that they use the periodic system. April 2016 1 Purchased merchandise for cash, $1,310. 2 Returned merchandise f
- Journal Entries for Plant Assets Stellar Delivery Service had the following transactions related to its delivery truck: Year 1 Mar. 1 Purchased for $32,500 cash a new delivery truck with an estimated
- Sandy Johnson owns a small variety store. The following transactions took place during March of the current year. Journalize the transactions in a general journal using the perpetual inventory method. Mar. 3 Purchased merchandise on account from City Gal
- The following were selected from among the transactions completed by Mair Co. during the current year, Mair Co. sells and installs home and business security systems. Jan. 10. Loaned $12,000 cash to Jas Caudel, receiving a 90 day, 8% note. Feb. 4. Sold me
- Stevens Studios engaged in the following activities during the year: Purchased 100 shares of Monk Industries for $12,000 Sold 50 shares of Hinson Healthcare for $2,000. Purchased new equipment costing $70,000 for $20,000 cash and a $50,000 note payable
- Record the following transactions of Fashion Park in a general journal. Fashion Park must charge 8 percent sales tax on all sales. DATE TRANSACTIONS 2019 April 2 Sold merchandise for cash, $2,500 plus sales tax. April 3 The customer purchasing merchandise
- Journalize the entries to record the following selected transactions: 12/20 - Sold $900 of merchandise on account, subject to 7% sales tax. The cost of the merchandise sold was $510. 12/31 - Paid $436 to the state sales tax department for taxes collected.
- Journalize the entries to record the following selected transactions: (a) Sold $900 of merchandise on account, subject to 7% sales tax. The cost of the merchandise sold was $510. (b) Paid $436 to the state sales tax department for taxes collected.
- The following transactions of Pan-American Paper Company occurred during 2006 and 2007. 2006: Feb. 3 Purchased equipment for $40,000, signing a six month, 9% note payable Feb. 28 Recorded the week's sales of $60,000, one-third for cash, and two-thirds on
- The following selected transactions are from Seeker Company. 2010 Nov. 1 Accepted a $4,800, 90-day, 8% note dated this day in granting Julie Stephens a time extension on her past-due account receivable. Dec. 31 Made an adjusting entry to record the ac
- Record the journal entries for the following transactions 1. March 10: 400 units of raw materials were purchased on account at $5.50 per unit 2. March 15: 300 units of raw materials were requisition
- Prepare journal entries to record the following merchandising transactions of Yarvelle Company, which applies the perpetual inventory system. May 2 Purchased merchandise from Pearl Co. for $6,600 under credit terms of 3/15, n/30, FOB shipping point, invo
- Journalize the entries to record the following selected transactions: a. Sold $12,900 of merchandise on account, subject to a sales tax of 4%. The cost of the merchandise sold was $7,800. b. Paid $32,750 to the state sales tax department for taxes colle
- 2016 Dec13 Accepted a 9500 45 day 8 note dated December 13 in granting Miranda Lee a time extension on her past due account receivable Prepare journal entries for the following selected transactions o
- Journal the following transactions: 3-Jun: Purchased merchandise on account from ABC Company for $19,500. Terms 2/10, n/30, FOB shipping point. We were billed $292.5 for shipping which was added to o
- Gear Packs manufactures backpacks. Its plant records include the following materials-related transactions: Purchases of canvas (on account) $75,000 Purchases of thread (on account) $1,400 Material re
- Prepare the journal entries for the following transactions for Parties R Us, which uses the gross method to record purchases. January 2: Purchased 5,000 cases of beads for the upcoming Gasparilla parade at $65 per case. The terms were 3/15, n/45. Janu
- Prepare journal entries to record each of the following sales transactions of a merchandising company. Apr. 1 Sold merchandise for $3,000, granting the customer terms of 2/10, EOM; invoice dated Apri
- Green Plains Supply Co. has the following transactions related to notes receivable during the last 2 months of the year. Nov. 1 Loaned $60,000 cash to B. Younger on a 1-year, 8% note. Dec. 11 Sold goods to R. P. Meier, Inc., receiving a $3,600, 90-day, 7
- The following transactions, adjusting entries, and closing entries were completed by Legacy Furniture Co. during a throo-yoar dssible-decli
- Consider the following transaction made by Dawn Roberts, a real estate consultant and property manager: Paid the salary of the office assistant. Determine the accounts debited and credited in recording the transaction. Choose from the following accounts
- Prepare journal entries to record each of the following purchase transactions of a merchandising company. Nov. 5 Purchased 600 units of a product at a cost of $10 per unit. Terms of the sale are 2/10, n/60; the invoice is dated November 5. Nov. 7 Return
- The following selected transactions were completed by Zippy Do Co, a supplier of zippers for clothing: 2015 Dec. 3 Received from Chicago Clothing & Bags Co., on account, a $36,000, 90-day, 6% note dated December 3. 31 Recorded an adjusting entry for acc
- The following transactions apply to Bob's Bike Shop for 2016, its first year of operations: 1.Acquired $35,000 cash from the issue of common stock. 2. Acquired $9,600 of merchandise from Bob Hall, the
- Yerbury Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year: Feb. 2 Purchased for cash 5,300 shares of Wong Inc. stock for $20 per shar
- Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Tippah's records for the year 2016: beginning balance in inventory, $24,800; purchases, $306,700; purch
- Consider the following transactions: Apr. 2: Purchased $3,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. Apr.3: Paid $202 cash for
- The following selected transactions were completed by Alcor Co., a supplier of Velcro for clothing: 2009 Dec. 13. Received from Penick Clothing & Bags Co., on account, an $84,000, 90-day, 9% note dated December 13.
- Reporting Lard Acquisition for Cash and Mortgage Note on Statement of Cash Flows On the basis of the details of the following fixed asset account indicate the items to be reported on the statement of
- Enter the following transactions in a sales journal. Use a 6% sales tax rate. \\ *May 1: Sold merchandise on account to J. Adams, $2,000, plus sales tax. Sale No 488. *May 4: Sold merchandise on account to B. Clark, $1,800, plus sales tax. Sale No. 489.
Explore our homework questions and answers library
Browse
by subject