1. ACCT Review Problem
Journal Entries

2. 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

3. 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

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

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

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

7. 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

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

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

10. 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

11. 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

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

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

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

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

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

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

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

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

20. 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

21. 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

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

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

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

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

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

27. 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

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

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