Indicate the journal entries for the items below based on the chart of accounts.
9/3 You ordered business cards and stationary from Marketing Media on account. The order totaled $250 and will be shipped FOB Destination. (Record all purchases of supplies in the Supplies on Hand account).
9/5 You went to the KEM Supply to purchase supplies for your business at a cost of $600. KEM opened a customer charge account for you. The payment terms on your account will be 2/10, net 30. The time period for determining the payment amount begins on the purchase date.
9/14 You paid KEM Supply by issuing check #102
9/16 Marketing Media delivered your business cards and stationary. Check #103 was issued to pay for the supplies.
Cash |
105 |
Petty Cash |
107 |
Accounts Receivable |
110 |
Supplies on Hand |
130 |
Prepaid Insurance |
140 |
Computer Equipment |
220 |
Accumulated Depreciation – Computer Equipment |
221 |
Cell Phone |
230 |
Accumulated Depreciation – Cell Phone |
231 |
Vehicles |
240 |
Accumulated Depreciation - Vehicles |
241 |
Accounts Payable |
310 |
Customer Deposits (Unearned Revenue) |
320 |
SUTA Payable |
330 |
FICA Payable |
332 |
FUTA Payable |
334 |
Federal Income Tax Payable |
336 |
State Income Tax Payable |
338 |
Current Maturities of Long-Term Debt |
375 |
Notes Payable (long-term) |
410 |
Interest Payable |
420 |
Salaries Payable |
425 |
Common Stock ($2 par value) |
520 |
Additional Paid-in Capital on Common Stock |
521 |
Retained Earnings |
550 |
Dividends |
560 |
Engagement fees |
605 |
Monthly Accounting Services Revenue |
610 |
Hourly Accounting Services Revenue |
620 |
Tax Services Revenues |
612 |
Sales Discounts |
614 |
Advertising & Promotion Expense |
725 |
Depreciation Expense |
727 |
Rent Expense |
730 |
Insurance Expense |
735 |
Supplies Expense |
740 |
Meals & Entertainment |
745 |
Taxes and Licenses |
767 |
Telephone Expense |
770 |
Utilities Expense |
775 |
Fuel Expense |
780 |
Interest Expense |
820 |
Payroll Tax Expense |
825 |
Salaries Expense |
830 |
9/3 ordered business card and stationery value $250
Business card and stationery Dr $250
Marketing Media $250
(Being order placed on account to marketing Media)
9/5 Purchase of supplies from KEM Supply valued $ 600 on a payment terms of 2/10, net 30
Supplies on Hand Dr $ 600
To KEM Supply $ 600
(Being purchase of supplies from KEM Supply)
9/14 Payment to KEM Supply within 10 days and therefore eligible for cash discount @ 2%
KEM Supply Dr $600
To Cash Discount $12
To Bank $588
(Being payment made within 10 days and cash discount received)
9/16 Payment made to Marketing Media through instrument no.#103
Marketing Media Dr $ 250
To Bank A/c $ 250
(Being payment made to Marketing Media)
Note: Payment terms 2/10 net 30 means if payment is made within 10 days due in 30 days then 2% cash discount wil be given otherwise payment due within 30 days.
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