062 points SolutionJournal Entries Debit Credit Cash acdr 41

Solution

Journal Entries: Debit Credit

Cash a/c..................dr $4,100,000

To Notes Payable a/c   $4,100,000

(Being cash raised from bank by signing notes payable in six months)

Snowplow a/c...............dr $95,000

To Cash a/c $95,000

(Being snowplow purchased on cash)

Purchase a/c.........dr $41,000

To supplier\'s a/c $41,000

(Being ski equipment inventory purchased on account from the supplier to be sold in ski stores)

Maintenance Expenses a/c....dr $55,000

To Cash a/c $55,000

(Being maintenance expenses incurred and paid in cash )

Cash A/c dr $378,000

To sales a/c $378,000

(Being cash sales amounting to $378000 made)

Customer\'s a/c ....................dr $730

To sales account $730

(Being sales of two ski equipment to the customer on account)

Cash a/c.............................dr $274000

To sales account   $274000

(Being daily lift passes sold in cash)

Cash a/c dr $4,200

To Deposit received in advance $4200

(Being deposit received in advance for renting the townhose for January five days)

Supplier\'s a/c dr $20,500

To Cash a/c $20,500

(Being half of the outstanding amount paid on purchase of ski equipment)

Cash a/c ........................dr $460

Discount a/c....................dr $270

To Customer\'s a/c $730

(Being cash received against 730 in full settlement of the account )

Wages a/c .....................dr $263,000

To Cash a/c   $263,000

(Being wages paid for the month of december)