Facts participated in the following transactions Jan 1 Inv D

Facts: participated in the following transactions: Jan 1 Inv During January and February 2015, Stackhouse, Connelly,and Teagarden Enterprises (SCT Enterprises) entory on hand includes 500 widgets at a cost of $10 each (no journal entry is necessary, but yo u should make a note that these are the items that comprise the beginning inventory Purchased two new delivery trucks for $75,000 by signing a five-year note payable. The note balance). 2 carries a 5% interest rate and is due in equal monthly installments of principal and interest. Payments are due o n the 2nd of each month. Note: you need to determine the amount of each monthly payment. 3 Paid employees $15,000 for wages earned in December 7 Purchased 11,000 widgets at a cost of $11 each on account. 11 Paid various utility bills of $1,800 for the month of January. 13 Sold 3,000 widgets on account for $60,000. 14 Paid employees $15,000 wages for the first half of the month 19 Paid $75,000 to suppliers for previous inventory purchases 20 Delivered 300 widgets to the customer who prepaid in December Collected $90,000 on account from customers. 6 1 Paid employees $15,000 for wages due from January. 2 Made required payment on truck notus. 8 Purchased 20,000 widgets at a cost of $9 each on account. 11 Paid various utility bills of $2,100 for the month of February. 14 Sold 5,000 widgets to a customer for cash of $100,000. 15 Paid employees $15,000 wages for the first half of the month. 21 Learned that a customer has declared bankruptcy and determined that the $1,000 owed by the Feb 23 24 28 Collected $20,000 on account from customers customer to SCT should be written-off. Purchased 10,000 widgets at a cost of $8 each on account. Sold 13,000 units on account for $325,000.

Solution

Journal entry:

Date . Particulars. Dr . Cr.

Dec 31 . Salaries account Dr. $15000

To Salaries payable account. $15000

(Being accrued salaries recorded)

Note: Salaries expense is an income statement account that reduces the net income for the period. Salaries payable is a balance sheet short term liabilities account.

When payment is made on Jan 3:

Jan3. Salaries payable account Dr. $15000

To Cash account . $15000

(Being wages were paid)

Assumption: Assumed that salaries were accrued in one month and paid in the next/following month.