week 5 problems 2023 Business Finance
2023 Exercise 9 2 Bliesmer Company incurred the following costs Indicate to which account Bliesmer would debit each of the costs
Exercise 9-2
Bliesmer Company incurred the following costs. Indicate to which account Bliesmer would debit each of the costs.
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No. |
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Transactions |
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Account |
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1. |
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Sales tax on factory machinery purchased |
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$ 5,000 |
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2. |
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Painting of and lettering on truck immediately upon purchase |
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700 |
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3. |
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Installation and testing of factory machinery |
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2,000 |
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4. |
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Real estate broker’s commission on land purchased |
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3,500 |
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5. |
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Insurance premium paid for first year’s insurance on new truck |
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1,100 |
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6. |
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Cost of landscaping on property purchased |
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7,200 |
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7. |
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Cost of paving parking lot for new building constructed |
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17,900 |
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8. |
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Cost of clearing, draining, and filling land |
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12,600 |
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9. |
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Architect’s fees on self-constructed building |
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10,000 |
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Exercise 9-10
Francis Company owns equipment that cost $50,000 when purchased on January 1, 2011. It has been depreciated using the straight-line method based on estimated salvage value of $8,000 and an estimated useful life of 5 years.
Prepare Francis Company’s journal entries to record the sale of the equipment in these four independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 125.)
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(a) |
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Sold for $28,000 on January 1, 2014. |
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(b) |
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Sold for $28,000 on May 1, 2014. |
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(c) |
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Sold for $11,000 on January 1, 2014. |
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(d) |
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Sold for $11,000 on October 1, 2014. |
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No. |
Account Titles and Explanation |
Debit |
Credit |
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(a) |
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(b) |
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(To record depreciation) |
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(To record sale of equipment) |
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(c) |
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(d) |
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(To record depreciation) |
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(To record sale of equipment) |
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Problem 9-1A
Ripley Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.
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Debits |
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1. |
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Cost of filling and grading the land |
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$ 6,000 |
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2. |
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Full payment to building contractor |
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780,000 |
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3. |
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Real estate taxes on land paid for the current year |
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5,000 |
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4. |
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Cost of real estate purchased as a plant site (land $100,000 and building $45,000) |
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145,000 |
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5. |
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Excavation costs for new building |
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35,000 |
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6. |
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Architect’s fees on building plans |
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10,000 |
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7. |
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Accrued real estate taxes paid at time of purchase of real estate |
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2,000 |
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8. |
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Cost of parking lots and driveways |
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14,000 |
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9. |
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Cost of demolishing building to make land suitable for construction of new building |
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15,000 |
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$1,012,000 |
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Credits |
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10. |
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Proceeds from salvage of demolished building |
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$ 3,600 |
Analyze the foregoing transactions using the following column headings. Insert the amounts in the appropriate columns. (If an amount reduces the account balance then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)
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Item |
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Land |
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Buildings |
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Other Accounts |
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1. |
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$ |
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$ |
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$ |
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2. |
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3. |
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4. |
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5. |
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6. |
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7. |
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8. |
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9. |
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10. |
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$ |
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$ |
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Exercise 10-1
Padillio Company had the following transactions involving notes payable.
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July 1, 2014 |
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Borrows $60,000 from Fourth National Bank by signing a 9-month, 8% note. |
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Nov. 1, 2014 |
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Borrows $50,000 from Livingston State Bank by signing a 3-month, 9% note. |
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Dec. 31, 2014 |
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Prepares adjusting entries. |
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Feb. 1, 2015 |
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Pays principal and interest to Livingston State Bank. |
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Apr. 1, 2015 |
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Pays principal and interest to Fourth National Bank. |
Prepare journal entries for each of the transactions. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Date |
Account Titles and Explanation |
Debit |
Credit |
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July 1, 2014 |
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Nov. 1, 2014 |
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Dec. 31, 2014 |
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(Adjusting entry for Fourth National Bank note.) |
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Dec. 31, 2014 |
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(Adjusting entry for Livingstone State Bank note.) |
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Feb. 1, 2015 |
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Apr. 1, 2015 |
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Exercise 10-3
In providing accounting services to small businesses, you encounter the following situations pertaining to cash sales.
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1. |
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Jackson Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $30,000 and sales taxes $1,650. |
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2. |
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Pearson Company does not segregate sales and sales taxes. Its register total for April 15 is $20,330, which includes a 7% sales tax. |
Prepare the entry to record the sales transactions and related taxes for each client. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Date |
Account Titles and Explanation |
Debit |
Credit |
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JACKSON COMPANY |
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Apr. 10 |
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PEARSON COMPANY |
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Apr. 15 |
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Exercise 10-6
According to the accountant of Ulster Inc., its payroll taxes for the week were as follows: $137.68 for FICA taxes, $13.77 for federal unemployment taxes, and $92.93 for state unemployment taxes.
Journalize the entry to record the accrual of the payroll taxes. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2. Round answers to 2 decimal places, e.g. 10.50.)
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Account Titles and Explanation |
Debit |
Credit |
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