ACCT 20100 Review Problem Journal Entries

Transaction 1 Mike Company had sales of goods totaling $15,000, receiving $10,000 in cash and $5,000 on account. The cost of goods sole was $5,000. Account Debit Credit

Transaction 1 Mike Company had sales of goods totaling $15,000, receiving $10,000 in cash and $5,000 on account. The cost of goods sole was $5,000. Account Debit Credit Cash $10,000 Accounts Receivable $ 5,000 Sales $15,000 Cost of Goods Sold $5,000 Inventory

Transaction 2 Mike Company purchased $15,000 of inventory. All purchases were on account. Account Debit Credit

Transaction 2 Mike Company purchased $15,000 of inventory. All purchases were on account. Account Debit Credit Inventory $15,000 Accounts Payable

Transaction 3 Mike Company paid salaries, including $1,000 for this month and $1,500 that was payable from last month. Account Debit Credit

Transaction 3 Mike Company paid salaries, including $1,000 for this month and $1,500 that was payable from last month. Account Debit Credit Salary Expense $1,000 Salaries Payable $1,500 Cash $2,500

Transaction 4 Mike Company purchased $500 of supplies. All of these purchases were on account. Account Debit Credit

Transaction 4 Mike Company purchased $500 of supplies. All of these purchases were on account. Account Debit Credit Supplies $500 Accounts Payable

Transaction 5 Mike Company collected $2,500 cash from customers who had been granted credit. The entire amount collected relates to sales from last month. Account Debit Credit

Transaction 5 Mike Company collected $2,500 cash from customers who had been granted credit. The entire amount collected relates to sales from last month. Account Debit Credit Cash $2,500 Accounts Receivable

Transaction 6 Mike Company paid utilities of $500. Account Debit Credit

Transaction 6 Mike Company paid utilities of $500. Account Debit Credit Utilities Expense $500 Cash

Transaction 7 Mike Company paid $3,000 to its suppliers related to previous purchases on account. Account Debit Credit

Transaction 7 Mike Company paid $3,000 to its suppliers related to previous purchases on account. Account Debit Credit Accounts Payable $3,000 Cash

Transaction 8 Mike Company paid $1,500 for this month’s rent. Account Debit Credit

Transaction 8 Mike Company paid $1,500 for this month’s rent. Account Debit Credit Rent Expense $1,500 Cash

Transaction 9 Mike Company incurred depreciation expense for the month of $2,000. Account Debit Credit

Transaction 9 Mike Company incurred depreciation expense for the month of $2,000. Account Debit Credit Depreciation Expense $2,000 Accumulated Depreciation

Transaction 10 After counting its supplies on hand, Mike Company determined that they had $1,000 in supplies on-hand as of the end of the month. Account Debit Credit

Transaction 10 After counting its supplies on hand, Mike Company determined that they had $1,000 in supplies on-hand as of the end of the month. Account Debit Credit Supplies Expense $1,500 Supplies

Transaction 11 $1,000 of prepaid insurance expired. Account Debit Credit

Transaction 11 $1,000 of prepaid insurance expired. Account Debit Credit Insurance Expense $1,000 Prepaid Insurance

Transaction 12 Mike Company paid $300 of interest on its long-term debt. Account Debit Credit

Transaction 12 Mike Company paid $300 of interest on its long-term debt. Account Debit Credit Interest Expense $300 Cash

Transaction 13 Mike Company incurred $1,000 of salaries expense, but will pay this amount next month. Account Debit Credit

Transaction 13 Mike Company incurred $1,000 of salaries expense, but will pay this amount next month. Account Debit Credit Salaries Expense $1,000 Salaries Payable

Transaction 14 Mike Company declared and paid $500 in dividends. Account Debit Credit

Transaction 14 Mike Company declared and paid $500 in dividends. Account Debit Credit Retained Earnings $500 Cash