Baic JE TC Flashcards
Record $100 of revenue from the sale of electric vehicles.
Dr. Cash 100
Cr. Revenue 100
Record the purchase of inventory for $500 on credit.
Dr. Inventory 500
Cr. Accounts Payable 500
Record the depreciation expense of $200 using the indirect method.
Dr. Depreciation Expense 200
Cr. Accumulated Depreciation 200
Record the disposal of equipment with an original cost of $1,500, accumulated depreciation of $500, and a book value of $1,000. The equipment was sold for $1,200 in cash.
Dr. Cash 1,200
Dr. Accumulated Depreciation 500
Cr. Equipment 1,000
Cr. Gain on Sale of Equipment 700
Record the donation of a fixed asset with a fair market value (FMV) of $10,000.
Dr. Fixed Asset 10,000
Cr. Contributed Revenue 10,000
Record the sale of land for $50,000 (book value: $40,000).
Dr. Cash 50,000
Cr. Land 40,000
Cr. Gain on Sale of Land 10,000
Record the adjustment for LIFO Reserve of $5,000 at year-end (increase).
Dr. Cost of Goods Sold 5,000
Cr. LIFO Reserve 5,000
Record a prepaid rent payment of $12,000 for one year in advance.
Dr. Prepaid Rent 12,000
Cr. Cash 12,000
Adjust prepaid rent for three months used ($3,000).
Dr. Rent Expense 3,000
Cr. Prepaid Rent 3,000
Record the purchase of supplies worth $2,500 in cash.
Dr. Supplies 2,500
Cr. Cash 2,500
Adjust supplies for $500 used during the period (initial balance: $2,500).
Dr. Supplies Expense 500
Cr. Supplies 500
Record unearned revenue of $8,000 received in advance for services to be provided next year.
Dr. Cash 8,000
Cr. Unearned Revenue 8,000
Adjust unearned revenue for $2,000 earned during the period (initial balance: $8,000).
Dr. Unearned Revenue 2,000
Cr. Revenue 2,000
Record accrued wages payable of $3,500 at year-end.
Dr. Wages Expense 3,500
Cr. Wages Payable 3,500
Record an adjusting entry for bad debt expense using the allowance method ($1,200).
Dr. Bad Debt Expense 1,200
Cr. Allowance for Doubtful Accounts 1,200
