I need to enter the following into Journal Enteries
a) Borrowed $12,000 cash on a short-term note payable dates march 1, 2011
b) Purchased land for future buildings site, paid cash, $9,000.
c) Earned $160,000 in Service Revenue for 2011, including 40,000 on credit and 120,000 collected in cash.
d) Received an additional $3,000 investments by H. Hermann.
e) Recognized 70,000 in Wages Expense for 2011, paid in cash, and 15,000 of Other Operating Expense on credit.
f) Collected accounts receivable from customers, 24,000.
g) Purchased other assets, 10,000.
h)Paid accounts payable, 13,000.
i) Signed a 25,000 service contract to start Feb 1, 2012.
j) Purchased supplies on an account for future use, 18,000.
k) Paid 17,000 cash to H. Hermann on his drawing account.
HELP
To record these transactions in journal entries, you will need to follow the basic accounting equation, which states that Assets = Liabilities + Equity.
a) To record the borrowing of $12,000 cash on a short-term note payable, you would make the following journal entry:
Debit: Cash $12,000 (Increase in Asset)
Credit: Notes Payable $12,000 (Increase in Liability)
b) To record the purchase of land for $9,000 paid in cash, you would make the following journal entry:
Debit: Land $9,000 (Increase in Asset)
Credit: Cash $9,000 (Decrease in Asset)
c) To record the service revenue earned in 2011, you would make the following journal entry:
Debit: Accounts Receivable $40,000 (Increase in Asset)
Debit: Cash $120,000 (Increase in Asset)
Credit: Service Revenue $160,000 (Increase in Equity)
d) To record the additional $3,000 investment by H. Hermann, you would make the following journal entry:
Debit: Cash $3,000 (Increase in Asset)
Credit: Capital $3,000 (Increase in Equity)
e) To record the wages expense and other operating expense for 2011, you would make the following journal entry:
Debit: Wages Expense $70,000 (Increase in Expense)
Debit: Other Operating Expense $15,000 (Increase in Expense)
Credit: Cash $70,000 (Decrease in Asset)
Credit: Accounts Payable $15,000 (Increase in Liability)
f) To record the collection of accounts receivable from customers, you would make the following journal entry:
Debit: Cash $24,000 (Increase in Asset)
Credit: Accounts Receivable $24,000 (Decrease in Asset)
g) To record the purchase of other assets for $10,000, you would make the following journal entry:
Debit: Other Assets $10,000 (Increase in Asset)
Credit: Cash $10,000 (Decrease in Asset)
h) To record the payment of accounts payable, you would make the following journal entry:
Debit: Accounts Payable $13,000 (Decrease in Liability)
Credit: Cash $13,000 (Decrease in Asset)
i) To record the signing of a $25,000 service contract for February 1, 2012, you would not make a journal entry right now, as the transaction has not occurred in the current period.
j) To record the purchase of supplies on account for $18,000, you would make the following journal entry:
Debit: Supplies $18,000 (Increase in Asset)
Credit: Accounts Payable $18,000 (Increase in Liability)
k) To record the payment of $17,000 cash to H. Hermann on his drawing account, you would make the following journal entry:
Debit: Drawings $17,000 (Decrease in Equity)
Credit: Cash $17,000 (Decrease in Asset)
Remember to consult with a professional accountant or refer to your company's specific accounting policies for guidance on recording journal entries.
Sure! I can help you with entering these transactions into journal entries. Here are the required journal entries step-by-step:
a) Borrowed $12,000 cash on a short-term note payable dated March 1, 2011:
Debit: Cash (Increase by $12,000)
Credit: Notes Payable (Increase by $12,000)
b) Purchased land for future buildings site, paid cash, $9,000:
Debit: Land (Increase by $9,000)
Credit: Cash (Decrease by $9,000)
c) Earned $160,000 in Service Revenue for 2011, including $40,000 on credit and $120,000 collected in cash:
Debit: Accounts Receivable (Increase by $40,000)
Debit: Cash (Increase by $120,000)
Credit: Service Revenue (Increase by $160,000)
d) Received an additional $3,000 investment by H. Hermann:
Debit: Cash (Increase by $3,000)
Credit: Owner's Equity (Increase by $3,000)
e) Recognized $70,000 in Wages Expense for 2011, paid in cash, and $15,000 of Other Operating Expense on credit:
Debit: Wage Expense (Increase by $70,000)
Debit: Other Operating Expense (Increase by $15,000)
Credit: Cash (Decrease by $70,000)
f) Collected accounts receivable from customers, $24,000:
Debit: Cash (Increase by $24,000)
Credit: Accounts Receivable (Decrease by $24,000)
g) Purchased other assets, $10,000:
Debit: Other Assets (Increase by $10,000)
Credit: Cash (Decrease by $10,000)
h) Paid accounts payable, $13,000:
Debit: Accounts Payable (Decrease by $13,000)
Credit: Cash (Decrease by $13,000)
i) Signed a $25,000 service contract to start Feb 1, 2012:
No journal entry required at this time as the service is not yet performed.
j) Purchased supplies on an account for future use, $18,000:
Debit: Supplies (Increase by $18,000)
Credit: Accounts Payable (Increase by $18,000)
k) Paid $17,000 cash to H. Hermann on his drawing account:
Debit: Drawings (Decrease by $17,000)
Credit: Cash (Decrease by $17,000)
I hope this helps! Let me know if you have any further questions.