Journal Entries Flashcards
Establish allowance for doubtful accounts and write-off account.
Establish:
Dr. Bad debt expense
Cr. Allowance for doubtful accounts
Write off:
Dr. Allowance for doubtful accounts
Cr. Accounts receivable
Sell an asset for a loss and sell an asset for a gain.
Loss: Dr. Accumulated depreciation Dr. Loss Dr. Cash Cr. Equipment (at book value) Gain: Dr. Accumulated depreciation Dr. Cash Cr. Equipment (at book value) Cr. Gain
Cash dividend declared and paid.
Declared: Dr. Dividends Cr. Dividends payable Paid: Dr. Dividends payable Cr. Cash
Closing revenue, expense, and dividend entries.
Close revenue: Dr. Revenue Cr. Income summary Close expense accounts: Dr. Income summary Cr. Each expense account Close income summary to retained earnings: Dr. Income summary Cr. Retained earnings Close dividends: Dr. Retained earnings Cr. Dividends
Collect on accounts receivable.
Collect on A/R:
Dr. Cash
Cr. Accounts receivable
Purchase asset with cash and note payable.
To record purchase:
Dr: Land/Equipment
Cr. Cash
Cr. Note payable
Record annual depreciation expense.
Record annual depreciation expense:
Dr. Depreciation expense
Cr. Accumulated depreciation.
Record receipt of dividend income.
Receive dividend income:
Dr. Cash
Cr. Dividend income
Record accrued expense.
Record accrued expense:
Dr. Expense
Cr. Payable
Purchase and yearly adjustment of available for sale securities.
Purchase: Dr. Available for sale securities Cr. Cash Record loss at year end: Dr. Unrealized loss - OCI Cr. Available for sale securities Record gain at year end: Dr: Available for sale securities Cr. Unrealized gain - OCI
Investment in bonds at a discount, interest received, and redemption of bonds.
(Assume: five $1000, 5%, 3-year bonds at 97, semi-annual interest, straight-line)
Investment: Dr: Investment in bonds 4,850 Cr: Cash 4,850 Interest received: Dr: Cash 125 Dr: Investment in bonds 25 Cr: Interest income 150 (5,000 x .05 x 6/12 months) ($150 x 6 months / 36 months) Redemption: Dr: Cash 5,000 Cr: Investment in bonds 5,000
Investment in bonds at a premium, interest received, and redemption of bonds.
(Assume: five $1000, 5%, 3-year bonds at 106, semi-annual interest, straight-line)
Investment: Dr: Investment in bonds 5,300 Cr: Cash 5,300 Interest received: Dr: Cash 125 Cr: Investment in bonds 50 Cr: Interest income 75 ($5,000 x .05 x 6/12 months) ($300 x 6 months / 36 months) Redemption Dr: Cash 5000 Cr: Investment in bonds 5,000
Equity method investment purchase, net income, and dividends (Assume 25% stake, $10,000 net income and $1,000 in dividends)
Initial investment: Dr: Investment in investee Cr: Cash Year-end share of net income Dr: Investment in investee 2,500 Cr: Investment income 2,500 Share of dividends: Dr: Cash 1,000 Cr: Investment in investee 1,000
Investment in trading securities and year-end adjustments
Initial purchase: Dr: Trading securities Cr: Cash Year-end loss: Dr: Unrealized loss on investment (to net income) Cr: Trading securities Year-end gain: Dr: Trading securities Cr: Unrealized gain on investments (to net income)
Issue par value stock
3,000 shares, $1 par, at $5 per share
Issue:
Dr: Cash 15,000,000
Cr: Common stock 3,000,000
Cr: Additional paid-in capital 12,000,000