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Journal entries

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Woodscross LLC had the following events occur during the month of July.
1. Receivd $40,000 from investors for contributed capital
2. Borrowed $15,500 from the bank
3. Paid $4,100 for rent
4. Made sales on account for $12,500
5. Made cash sales to customers totaling $29,700
6. Repaid part of the bank loan for $6,000
7. Purchased new equipment for $5,000
8. Paid $13,000 for wages
9. Paid $1,900 for utilities

Prepare the nine journal entries using the following so that the formatting will be clear.

Debit account #1 name $xxx
Credit account #2 name $xxx

Make sure to include the words "debit" and "credit" before the account name for clarity.

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Woodscross LLC had the following events occur during the month of July.
1. Receivd $40,000 from investors for contributed capital
2. Borrowed $15,500 from the bank
3. Paid $4,100 for rent
4. Made sales on account for $12,500
5. Made cash sales to customers totaling $29,700
6. Repaid part of the bank loan for $6,000
7. Purchased new equipment for $5,000
8. Paid $13,000 for wages
9. Paid $1,900 for utilities

Prepare the nine journal entries using the following so that the formatting will be clear.

Debit account #1 name $xxx
Credit account #2 name $xxx

A debit to a liability, revenue, or equity account is a ...

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See Also This Related BrainMass Solution

Journal Entries and GASB: Government vs For-Profit Journal Entries

To make sure you are up to date on the special guidelines the GASB has declared, your manager asked you to research GASB Statement No. 56. He also asked you to show him, side by side, how government accounting journal entries might differ from for-profit journal entries in these similar events.

* When was GASB Statement No. 56 initiated?
* In your own words, what is the essence of the new ruling?
* Why did the GASB probably deem it as being necessary?
* How might GASB Statement No. 56 change the activities of any accountant performing governmental accounting?

Create journal entries for all of the following situations.

1. On 10/1/2010, a for-profit Company A provides $100,000 of service to Company B. Company B plans to pay their bill 90 days later.
Create the journal entry when the service is provided.
Create the journal entry when the cash is received.

2. On 12/1/2010, the city's recreation department receives a government grant of $100,000 specifically to use for next year's park upgrades, which will begin on 1/1/2011.
Create the journal entry made when the cash is received.
Create the journal entry to be made on 1/1/2011.

3. A for-profit retail store buys $200,000 of inventory on 9/1/2010.
Create the proper journal entry to show purchase of this inventory.

4. A local city park buys $200,000 of food merchandise for later resale. It uses the purchase method to account for inventory.
Create the proper journal entry for when this purchase is made.

5. A nonprofit organization receives a $250,000 donation on 12/1/2011, but the donor specifically wants it spent in 2012.
Create the journal entry or entries to show the proper recording of revenue (this may require more than on journal entry).
Create the subsequent journal entry to show spending of the funds.

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