1. Journal Entry Practice

2. E3-3 Recording the Transactions

3. A customer orders and receives 10 personal computers from Dell; the customer promises to pay $18,400 within three months. Answer from Dell’s standpoint. What about cost info?
Account Name
Debit
Credit
Accounts Receivable
$18,400
Sales Revenue

4. Fucillo Hyundai, Inc, sells a truck with a list, or sticker, price of $20,050 for $18,050 cash.
Account Name
Debit
Credit
Cash
$18,050
Sales Revenue

5. Bon-Ton Department Store orders 1,000 men’s shirts from Arrow Shirt Company for $15 each for future delivery. The terms require full payment within 30 days of delivery. Answer from Arrow’s standpoint.
Account Name
Debit
Credit
No Entry

6. Arrow Shirt Company completes production of the shirts described in part c and delivers the order (answer from Arrow Shirt Company perspective)
Account Name
Debit
Credit
Accounts Receivable
$15,000
Sales Revenue

7. Arrow receives payment from Bon-Ton for the order described in part c
Arrow receives payment from Bon-Ton for the order described in part c. Answer from the perspective of Arrow Shirt Company.
Account Name
Debit
Credit
Cash
$15,000
Accounts Receivable

8. A customer purchases a ticket from American Airlines for $410 cash to travel the following January. Answer from American Airlines perspective.
Account Name
Debit
Credit
Cash
$410
Unearned Airfare Revenue

9. General Motors issues $20 million in new common stock
Account Name
Debit
Credit
Cash
$20,000,000
Contributed Capital

10. Pen State University receives $18,300,000 cash for 80,000 five-game season football tickets.
Account Name
Debit
Credit
Cash
$18,300,000
Unearned Football Ticket Revenue

11. Penn State plays the first football game described in part h.
Account Name
Debit
Credit
Unearned Football Ticket Revenue
$3,660,000
Football Ticket Revenue
$3.660,000

12. Precision Construction Company signs a contract with a customer for the construction of a new $500,000 warehouse. At the signing, Precision receives a $50,000 deposit as a deposit on the future construction project. Answer from the perspective of Precision.
Account Name
Debit
Credit
Cash
$50,000
Unearned Construction Revenue

13. In 1 year (assuming no other transactions are recorded?
On September 1, 2012, a bank lends $1,200 to a company; the note principal and $144 annual interest are due in one year (1,200 X 12%). Answer from the Bank’s perspective.
NOW:
In 1 year (assuming no other transactions are recorded?
Account Name
Debit
Credit
Note Receivable
$1,200
Cash
Account Name
Debit
Credit
Cash
$1,344
Notes Receivable
$1,200
Interest Revenue
$144

14. A popular ski magazine company receives a total of $1,980 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the perspective of the magazine company:
What do you do with each edition of the magazine that is sent out (assume 12 issues)?
Account Name
Debit
Credit
Cash
$1,980
Unearned Subscription Revenue
Account Name
Debit
Credit
Unearned Subscription Revenue
$165
Subscription Revenue

15. Sears, a retail store, sells a $100 lamp to a customer who charges the sale on his store credit card. Answer from Sear’s perspective.
Account Name
Debit
Credit
Accounts Receivable
$100
Sales Revenue

16. E 3-4 Recording the transactions

17. ASSUME: No Salaries Payable has been previously recorded.
Dell pays its computer service technicians $79,500 in salaries for two weeks ended January 7.
ASSUME: No Salaries Payable has been previously recorded.
Account Name
Debit
Credit
Salaries Expense
$79,500
Cash

18. At the beginning of January, Turner Construction Company pays $4,410 in worker’s compensation insurance for the first three months of the year.
Account Name
Debit
Credit
Prepaid Insurance
$4,410
Cash

19. McGraw-Hill Publishing Company uses $754 worth of electricity and natural gas in its headquarters building for which it has not yet been billed.
Note: Expense is incurred when utilities are used and can be recorded when amount is known.
Account Name
Debit
Credit
Utilities Expense
$754
Utilities Payable

20. Arrow Shirt Company completes production of 500 men’s shirts ordered by Bon-Ton’s Department Store at a cost of $10 each and delivers the order.
Note: No information was provided about sales information. Would have been Accounts Receivable and Sales Revenue.
Account Name
Debit
Credit
Cost of Goods Sold
$5,000
Inventory

21. The campus bookstore receives 500 accounting texts at a cost of $43 each. The terms indicate that payment is due within 30 days of delivery.
Account Name
Debit
Credit
Inventory
$21,500
Accounts payable

22. During the last week of January, the campus bookstore sold 450 accounting texts received in part e at a sales price of $92 each.
Assume cost data from part e (cost of $43 per book)
Account Name
Debit
Credit
Cash
$41,400
Sales Revenue
Account Name
Debit
Credit
Cost of Goods Sold
$19,350
Inventory

23. Fucillo Hyundai, Inc. pays its salespersons $3,200 in commissions related to December automobile sales.
Assume: Company had previously recorded commissions payable.
Account Name
Debit
Credit
Commissions Payable
$3,200
Cash

24. Fucillo Hyundai, Inc. determines that it will pay its salespersons $4,470 in commissions related to January sales. The payment will be made in early February.
Account Name
Debit
Credit
Commissions Expense
$4,470
Commissions Payable

25. A new grill is purchased and installed at a Wendy’s restaurant at the end of the day on January 31; $8,750 cash payment was made on that day.
Account Name
Debit
Credit
Equipment
$8,750
Cash

26. The University of Florida orders 60,000 season football tickets from its printer and pays $5,410 in advance for the custom printing. The first game will be paid in September.
Account Name
Debit
Credit
Tickets Receivable
$5,410
Cash

27. Carousel Mall had janitorial supplies costing $4,000 in storage
Carousel Mall had janitorial supplies costing $4,000 in storage. An additional $2,600 worth of supplies was purchased during January. At the end of January, $410 worth of janitorial supplies remained in storage.
Assume: Purchase of supplies was properly recorded, just recording the supplies used.
Account Name
Debit
Credit
Supplies Expense
$6,190
Supplies

28. An Iowa State University employee works eight hours, at $13 per hour, on January 31; however, payday is not until February 3.
Account Name
Debit
Credit
Wages Expense
$104
Wages Payable

29. Wang Company paid $3,600 for a fire insurance policy on January 1
Wang Company paid $3,600 for a fire insurance policy on January 1. The policy covers 12 months beginning January 1.
Account Name
Debit
Credit
Prepaid Insurance
$3,600
Cash

30. Darrius Incorporated has its delivery van repaired for $300 and charges the amount on account.
Account Name
Debit
Credit
Repairs & Maintenance Expense
$300
Accounts Payable (Maint. Payable)

31. Hass Company, a farm equipment company, receives its phone bill at the end of January for $202 for January calls. The bill has not been paid to date.
Account Name
Debit
Credit
Phone Expense
$202
Accounts Payable

32. Martin Company receives and pays in January a $1,285 invoice (bill) from a consulting firm for services received in January.
Account Name
Debit
Credit
Consulting Expense
$1,285
Cash

33. Parillo’s Taxi Company pays a $595 invoice from a consulting firm for services received and recorded in December.
Account Name
Debit
Credit
Accounts payable
$595
Cash