BRIEF EXERCISES
BE 238
Kingery Sales Company has the following selected accounts after posting adjusting entries:
Accounts Payable$ 42,000
Notes Payable, 3-month50,000
Accumulated Depreciation—Equipment14,000
Notes Payable, 5-year, 6%80,000
Payroll Tax Expense4,000
Interest Payable3,000
Mortgage Payable120,000
Sales Tax Payable38,000
Instructions
Prepare the current liability section of Kingery Sales Company's balance sheet, assuming $20,000 of the mortgage is payable next year.
BE 239
Identify which of the following would be classified as current liabilities as of December 31, 2010:
1.Wages Payable
2.Bonds Payable, maturing in 2015
3. Interest Payable, due July 1, 2011
4.Taxes Payable
5.Notes Payable, due January 30, 2012
BE 240
On December 1, Gilman Corporation borrowed $10,000 on a 90-day, 6% note. Prepare the entries to record the issuance of the note, the accrual of interest at year end, and the payment of the note.
BE 241
During December 2011, Markowitz Publishing sold 2,500 month annual magazine subscriptions at a rate of $30 each. The first issues were mailed in February 2012. Prepare the entries on Markowitz’s books to record the sale of the subscriptions and the mailing of the first issues.
BE 242
Putman Company had cash sales of $81,375 (including taxes) for the month of June. Sales are subject to 8.5% sales tax. Prepare the entry to record the sale.