IV Journalize the following transactions according to the fo

IV. Journalize the following transactions according to the following descriptions: (45) 1. Nov. 1, performed services for a Morris Ltd, on account, $4,900 and created a petty cash fund with $100, 2. Nov. 3, received goods from Oct. 30 sale of $2,000 that cost $800. (Oct. 30, sold $6,000 that cost on credit terms of 2/10, n/30, FOB shipping point) . Nov. 4, paid $120 for the freight that was arranged for the client in the Oct. 30 sale. . Nov. 10, received payment of the Oct. 30 sale S. Nov 15, received an additional capital from the owner Smith of $5,000 in cash 6.Nov. 21, borrowed S2.000 from a bank for 3 month at a rate of6% per year. 7. Nov. 25, $500 was withdraw by the owner Peter 8 Nox. 30, it was found that the petty cash was spent on postage $15 for office use, stationery $$5 for store use; and only $25 is now on hand 9. Nox. 30, prepared adjusting entries:1) interest expense incurred on Nov. 21; 2) the beginning balance of supplies is $300, the new purchase during November is $200 and at the end of the Nov. the physical check showed a $150 supplies on hand; 3) accrued salaries $900; 4) depreciation for equipment which purchased 60,000 hours: for $510,000 with an estimated residual value of $30,000 and an expected operating hours of the equipment operates 2,000 hours during November (the company uses units-of production 10. Nov. 30, prepared the closing entries: I) Revenues: S120,000, 2) wage expenses: $12,000, 3) cost of acouired at a cost of $4.000 and has depreciated for $3,600 was sold for $800 method). merchandise sold: $40,000; 4) the drawing account. , 1 5 a firminire that was

Solution

Date Account titles and explanations Debit Credit 1 Nov 1. Accounts receivable 4900 Service revenue 4900 (Performed services on account) Nov 1. Petty cash 100 Cash 100 (Creation of petty cash fund) 2 Nov 3. Sales return 2000 Accounts receivable 2000 (Received goods back from customer) Inventory 800 Cost of merchandise sold 800 (Goods returned adjusted to inventory) 3 Nov 4. Accounts receivable 120 Cash 120 (Paid Freight which has to be obtained from the buyer) 4 Nov 10. Cash 4120 Accounts receivable 4120 (Received oct 30. sale) 5 Nov 15. Cash 5000 Capital Account 5000 (Received additional capital) 6 Nov 21. Cash 2000 Short-term borrowings 2000 (Borrowed from bank for 3 months) 7 Nov 25. Drawings account 500 Cash 500 (Cash withdrwan by the owner) 8 Nov 30. Postage expense 15 Stationery 55 Petty cash 70 (Disbursement from petty cash) 9 1) Nov 30. Interest expense (2000*6%*10/365) 3.29 Interest payable 3.29 (Interest payable on borrowing for 10 days) 2) Nov 30. Supplies 200 Cash 200 (Purchase of supplies) Nov 30. Supplies expense (300+200-150) 350 Supplies 350 (Supplies expenses made during november) 3) Nov 30. Salary expenses 900 Salary payable 900 (Salary accrued) 4) Nov 30. Depreciation expense [(510000-30000)/160000]*2000 6000 Accumulated depreciation 6000 (Depreciation recorded) 10 Nov 30. Revenues 120000 Income summary 120000 (Closing of revenue accounts) Nov 30. Income summary 52000 Wages expense 12000 Cost of merchandise sold 40000 (Closing of expense accounts) Nov 30. Capital Account 500 Drawings account 500 (Closing of drawing accounts) 11 Dec 5. Cash 800 Accumulated depreciation 3600 Gain on sale of asset 400 Furniture 4000 (Sale of furniture)