E 11-1
Sales recorded initially in a separate account from sales tax:
|
Journal |
|||||
|
DATE |
ACCOUNTS AND EXPLANATIONS |
POST. REF. |
DEBIT |
CREDIT |
|
|
Mar. |
31 |
Cash ($200,000 ´ 1.05) |
210,000 |
||
|
Sales Revenue |
200,000 |
||||
|
Sales Tax Payable |
|||||
|
($200,000 ´ .05) |
10,000 |
||||
|
|
|||||
|
Apr. |
6 |
Sales Tax Payable |
10,000 |
||
|
Cash |
10,000 |
||||
Sales tax recorded initially in the Sales Revenue account:
|
Journal |
|||||
|
DATE |
ACCOUNTS AND EXPLANATIONS |
POST. REF. |
DEBIT |
CREDIT |
|
|
Mar. |
31 |
Cash |
210,000 |
||
|
Sales Revenue ($200,000 ´ 1.05) |
210,000 |
||||
|
|
|||||
|
Mar. |
31 |
Sales Revenue |
|||
|
[$210,000 ! ($210,000 ) 1.05)] |
10,000 |
||||
|
Sales Tax Payable |
10,000 |
||||
|
Apr. |
6 |
Sales Tax Payable |
10,000 |
||
|
Cash |
10,000 |
||||
(5-10 min.)
E 11-21.
|
Accrued Payroll Liabilities |
|||
|
Payments |
262,874 |
Beg. bal. |
25,068 |
|
Expense |
265,000 |
||
|
End. bal. |
27,194 |
||
The ending balance agrees with the balance given in the text.
2. Gift certificates outstanding are unearned revenues that Pier 1 has collected in advance.
(10-15 min.
E 11-3|
Journal |
|||||
|
DATE |
ACCOUNTS AND EXPLANATIONS |
POST. REF. |
DEBIT |
CREDIT |
|
|
Nov. |
1 |
Cash |
126 |
||
|
Unearned Subscription Revenue |
120 |
||||
|
Sales Tax Payable ($120 ´ .05) |
6 |
||||
|
Dec. |
15 |
Sales Tax Payable |
6 |
||
|
Cash |
6 |
||||
|
31 |
Unearned Subscription Revenue |
40 |
|||
|
Subscription Revenue ($120 ´ 2/6) |
40 |
||||
|
Balance sheet: |
|
|
Current liabilities: |
|
|
Unearned subscription revenue ($120 ! $40) |
$80 |
(5-15 min.)
E 11-4Req. 1 (warranty entries)
|
Journal |
|||||
|
DATE |
ACCOUNTS AND EXPLANATIONS |
POST. REF. |
DEBIT |
CREDIT |
|
|
Warranty Expense |
|||||
|
($161,000 ´ .07) |
11,270 |
||||
|
Estimated Warranty Payable |
11,270 |
||||
|
|
|||||
|
Estimated Warranty Payable |
10,400 |
||||
|
Cash |
10,400 |
||||
Req. 2 (ending balance of Estimated Warranty Payable)
|
Estimated Warranty Payable |
|||
|
Payments during |
Beg. bal. |
3,100 |
|
|
period |
10,400 |
||
|
Exp. for period |
11,270 |
||
|
End. bal. |
3,970 |
||
(5-10 min.)
E 11-5|
Journal |
|||||
|
DATE |
ACCOUNTS AND EXPLANATIONS |
POST. REF. |
DEBIT |
CREDIT |
|
|
20X2 |
|||||
|
Apr. |
1 |
Equipment |
15,000 |
||
|
Note Payable, Short-term |
15,000 |
||||
|
|
|||||
|
Dec. |
31 |
Interest Expense |
|||
|
($15,000 ´ .08 ´ 9/12) |
900 |
||||
|
Interest Payable |
900 |
||||
|
20X3 |
|||||
|
Apr. |
1 |
Note Payable, Short-term |
15,000 |
||
|
Interest Payable |
900 |
||||
|
Interest Expense |
|||||
|
($15,000 ´ .08 ´ 3/12) |
300 |
||||
|
Cash [$15,000 + ($15,000 ´ .08)] |
16,200 |
||||
(10 min.)
E 11-6Req. 1
|
Journal |
||||||
|
DATE |
ACCOUNTS AND EXPLANATIONS |
POST. REF. |
DEBIT |
CREDIT |
||
|
20X4 |
||||||
|
a. |
Sept. |
1 |
Cash ($12,000 ! $480) |
11,520 |
||
|
Note Payable, Short-term |
11,520 |
|||||
|
(Discount = $12,000 ´ .08 ´ 6/12 = $480) |
||||||
|
b. |
Dec. |
31 |
Interest Expense |
|||
|
($12,000 ´ .08 ´ 4/12) |
320 |
|||||
|
Note Payable |
320 |
|||||
|
20X5 |
||||||
|
c. |
Mar. |
1 |
Interest Expense |
|||
|
($12,000 ´ .08 ´ 2/12) |
160 |
|||||
|
Note Payable |
160 |
|||||
|
1 |
Note Payable |
|||||
|
($11,520 + $320 + $160) |
12,000 |
|||||
|
Cash |
12,000 |
|||||
Req. 2
|
Tic-Toc Watch Repair |
|
|
Balance Sheet (partial) |
|
|
December 31, 20X4 |
|
|
Current liabilities: |
|
|
Note payable, short-term ($11,520 + $320) |
$11,840 |