Answer To: ACC 310 Spring 2006 Practice Case ACC 310 Whited 2021 Accounting Practice Set This case is designed...
Shanu answered on Jun 02 2021
Brian Burns Technology Corp. – General Journal (2021 Transactions)
Date
Account Name/GL Account #
Debit
Credit
1/1
Cash (100)
950,000
Common Stock (300)
950,000
(Being common stock sold for cash)
1/1
Cash (100)
2,000,000
Note Payable (250)
2,000,000
(Being note issued in the market)
1/1
Inventory (130)
147,000
Accounts Payable (210)
147,000
(Good purchased from Biggie)
[(1000*150)-2%]=147000
1/1
Prepaid Rent (140)
480,000
Cash (100)
480,000
(Rent paid in advance for 2 years)
1/1
Supplies (135)
10,000
Cash (100)
10,000
(Office supplies purchased)
1/20
Accounts payable (210)
147,000
Inventory (130)
3,000
Cash (100)
150,000
(Amount paid to biggie, discount reversed since paid after 10 days)
2/10
Account Receivable (110)
22,000
Sales (400)
22,000
2/10
Cost of goods sold (500)
15,000
Inventory (130)
15,000
(100 units sold to customer, reduced the inventory by (100*150)
2/10
Cash (100)
30,000
Sales (400)
30,000
(140 units sold for cash)
2/10
Cost of goods sold (500)
21,000
Inventory (130)
21,000
(Inventory reduced by (140*150)
3/15
Inventory (130)
170,000
Cash (100)
170,000
(1000 units purchased in cash for 170 per unit)
4/30
Cash (100)
30,000
Sales (400)
30,000
(150 units sold for cash)
4/30
Cost of goods sold (500)
25,500
Inventory (130)
25,500
(As per LIFO, latest goods purchased sold first, reduced inventory by (170*150)
6/30
Land (160)
250,000
Building (170)
750,000
Cash (100)
200,000
Notes Payable (250)
800,000
(Purchased land and building, cost is pro rated based on total fair value of land and building)
7/1
Interest Expense (570)
80,000
Cash (100)
80,000
(Half yearly interest paid on notes issued in the beginning in the year) [(2,000,000*8%)*6/12]
9/1
Cash (100)
60,000
Unearned Rent (235)
60,000
10/1
Equipment (180)
30,000
Notes payable (250
30,000
(Purchase of equipment)
10/1
Prepaid Insurance (145)
12,000
Cash (100)
12,000
(Paid for the insurance for 1 year)
10/14
Account Receivable (110)
100,000
Sales (400)
100,000
(Sold 400 units to H Gilmore)
10/14
Cost of goods sold (500)
68,000
Inventory (130)
68,000
(As per LIFO, latest goods purchased sold first, reduced inventory by (170*400)
10/30
Cash (100)
50,000
Account Receivable (110)
50,000
(Half amount received)
12/1
Treasury Stock (350)
120,000
Cash (100)
120,000
(Shares repurchased)
12/15
Retained Earnings (320)
18,000
Dividend Payable (245)
18,000
(Dividend declare for 9,000 shares, $2 per share)
12/15
Bad Debt Expenses (515)
50,000
Account Receivable
50,000
(Bad debts being recorded for H Gilmore)
12/20
Supplies (135)
13,000
Cash (100)
13,000
(Office supplies purchased)
12/25
Account receivable (110)
30,000
Sales (400)
30,000
12/25
Cost of goods sold (500)
25,500
Inventory (130)
25,500
(As per LIFO, latest goods purchased sold first, reduced inventory by (170*400)
12/31
Cash (100)
200,000
Sales (400)
200,000
(Cash sale recorded)
12/31
Cost of goods sold (500)
156,000
Inventory (130)
156,000
(As per LIFO, latest goods purchased sold first, reduced inventory by [(170*300)+(150*700)]
12/31
Supplies Expense (525)
11,000
Supplies (135)
11,000
(Office supply used)
12/31
Utilities Expense (550)
25,000
Utilities Payable (225)
25,000
(Recorded the utility expense for 2021)
12/31
Interest Expense (570)
128600
Interest Payable...