Sysco formed in 1969 is Americas largest marketer and distri

Sysco, formed in 1969, is America\'s largest marketer and distributor of food service products, serving nearly 250,000 restaurants, hotels, schools, hospitals, and other institutions. The following transactions are typical of those that occurred in a recent year, but the amounts are simplified. a. Borrowed $89,000 from a bank, signing a short-term note payable b. Provided $101,000 in service to customers, with $96,000 on account and the rest received in cash c. Purchased equipment for $169,000 in cash d. Paid employee wages of $2,650 e. Received 5b0 on account from a customer. f. Paid $5,300 cash for travel costs during the year. g. Paid $10,000 cash on accounts payable h. Incurred $22,200 in utility expenses during the year, of which $17,200 was paid in cash and the rest owed on account. Required 1. For each of the above transactions, prepare accrual basis journal entries. (If no entry is required for a transaction/event, select \"No Journal Entry Required\" in the first account field.) View transaction list Journal entry worksheet |1|2 3 4 5 6 Borrowing of $89,000 from a bank, signing a short-term note payable Record the transaction Note: Enter debits before credits Transaction General Journal Debit Credit Cash Record entry Clear entry View general journal 2. Calculate the company\'s preliminary net income Preliminary Net Income

Solution

Journal entries :

2. Net income = Revenue-expenses

= 101000-(2650+5300+22200)

Net income = 70850

Date	account	Debit	credit
a.	Cash	89000
	Bank loan		89000
	(To record short term loan taken from bank)
b.	Cash	5000
	Account receivable	96000
	service revenue		101000
	(To record service revenue)
c.	Equipment	169000
	Cash		169000
	(To record purchase equipment)
d.	Wages expenses	2650
	Cash		2650
	(To record wages paid)
e	Cash	560
	Account receivable		560
	(To record received from customer)
f	Travel expenses	5300
	Cash		5300
	(To record travel expenses)
g	Account payable	10000
	Cash		10000
	(To record cash paid)
h	Utilities expenses	22200
	Cash		17200
	Utilities payable		5000
	(To record utilities expenses)