ACCT 312 Pretest Prepare the journal entries required for th

ACCT 312: Pretest Prepare the journal entries required for the following transactions. I. A sale of S500, on account (Perpetual method: COGS = S300). 2. A cash sale of $150 (Perpetual method: COGS $100). 3. Collected $300 of accounts receivable. 4. Received loan proceeds of $5,000. The loan must be repaid at the end of 30 days 5. Accrued interest of $50 on the note payable. Paid the accrued interest and principal (regarding #4 and #5).

Solution

Journal Entries S.no Accounting titles & Explanations Debit Credit 1) Accounts receivable 500 Sales 500 Cost of goods sold 300 Merchandise inventory 300 2) Cash 150 Sales 150 Cost of goods sold 100 Merchandise inventory 100 3) Cash 300 Accounts receivable 300 4) Cash 5000 notes payable 5000 5) interest expense 50 interes payable 50 6) Notes payable 5000 interest payable 50 cash 5050