Journal entries

Question 1

– Adjusting entry –
provided services but has not yet received payment

Answer 1

D: Accounts receivable
– C: Revenue

Question 2

– Adjusting entry –
provided services and is receiving payment

Answer 2

D: Cash (full)
– C: Revenue
– C: Accounts receivable

Question 3

– Adjusting entry –
collected cash but has not yet generated revenue: initial transaction

Answer 3

D: Cash (full)
– C: Unearned revenue (L)

Question 4

– Adjusting entry –
collected cahs but has generated a little revenue

Answer 4

Unearned revenue (L)
– Revenue

Question 5

– Adjusting entry –
incurred expense but has not paid

Answer 5

Wages expense
— Wages payable

Question 6

– Adjusting entry –
incurred expense and is now paying

Answer 6

Wages expense
Wages payable
— Cash

Question 7

– Adjusting entry PROBLEM –
On Nov 30th, 2015, Overnight borrowed $4,000 from a bank by issuing an interesting-bearing notes payable. The loan is to be repaid in 3 months, along with interest computed at an annual rate of 9%.
Dec. 31 entry

Answer 7

Interest exp – 30
Interest payable – 30

Calculation:
4000*.09/12

Question 8

– Adjusting entry –
paid for expenses in advance initial (Ex. insurance)

Answer 8

Prepaid insurance (A) (full)
— Cash

Question 9

– Adjusting entry –
paid for expenses in advance but some time has passed

Answer 9

Expense
— Prepaid insurance (A)

Question 10

Accumulated depreciation

Answer 10

contra asset

Question 11

Cash over and short

Answer 11

exp if debit
rev if credit

Question 12

cash over and short debit

Answer 12

cash over and short (expense)
— cash

Question 13

Direct writeoff for uncollectible accounts

Answer 13

uncollectible accounts expense
– Accounts receivable

Question 14

Uncollectible accounts – didnt pay AND adjusting allowance for doubtful accounts

Answer 14

Uncollectible Accounts Expense
– Allowance for Doubtful Accounts (contra-asset)

Question 15

Writing off an Uncollectible Account Receivable

Answer 15

Allowance for Doubtful Accounts
– Accounts Receivable

Question 16

Recovery of an A.Receivable Previously written Off

Answer 16

accounts receiv.
– allowance
Cash
– Accounts Receivable

Question 17

Cogs location

Answer 17

income statement under revenue

Question 18

Inventory purchases under perpetual v periodic

Answer 18

inventory
— cash or accounts payable
v
purchase
— cash or accounts payable

Question 19

Recording COGS under perpetual and periodic

Answer 19

Cash or ac receivable
— Sales
COGS
— Inventory
v
Cash or acc receivable
— Sales

Question 20

Inventory shrinkage

Answer 20

COGS
— inventory

Question 21

record ending inventory in closing entry

Answer 21

COGS
— inventory (beginning)
— purchase

Inventory (ending)
— COGS

Question 22

Drop in inventory value (Immaterial and material)

Answer 22

COGS
— Inventory

Loss from writedown of inventory (exense)
— Inventory

Question 23

recording purchase at net cost and failing to pay in time for discount

Answer 23

inventory — discounted value
— accounts payable — discounted value

accounts payable
purchase discounts lost (non-operating expense)
— cash —total

Question 24

recording purchases at gross invoice price

Answer 24

accounts payable – full
— cash – discounted
— purchase discounts taken – discount

Question 25

Sales Returns and Allowances (category)

Answer 25

contra-revenue

Question 26

recieving discounted amount

Answer 26

cash
sales discounts (contra revenue)
— accounts recievable –full

Question 27

impairment of plant assets

Answer 27

impairment loss – amount needed to lower it to market value
— equipment

Question 28

Sale of ppe

Answer 28

cash
accumulated depreciation
— machine
— gain on disposal plant asset

Question 29

LT Note installment

Answer 29

Interest expense
Installment Note Payable
— Cash — total

Question 30

Semiannual bond interest payment

Answer 30

Bond Interest expense (principal * contract rate * .5)
— cash

Question 31

Bond interest adjusting entry

Answer 31

Bond interest expense
— bond interest payable

Question 32

bond issued at discount

Answer 32

cash
discount on bonds payable
— bonds payable — full

Question 33

amortization of the discount

Answer 33

bond interest expense — full
— discount on bounds payable = discount/periods
— cash

Question 34

calling a bond

Answer 34

bonds payable
loss on early retirement of bonds
— cash

Question 35

Issuance of par value stock

Answer 35

cash
— common stock — number of shares issues * par value per share
— Additional paid in capital — shares * (market price - oar value)

Question 36

what type of account is treasury stock

Answer 36

contra equity account

Question 37

stock dividend declared

Answer 37

retained earninngs
— stock dividend to be distributed
— additional paid in capital

Question 38

company buys and sells others’ bonds

Answer 38

debt investments
— cash
cash
—debt investments
— gain on sale of debt investments

Question 39

equity method

Answer 39

share investments – 2nd company’s income * % share of company
— revenue from share investments
cash – dividend * % share of company
— share investments