# Journal Entries with Revenues, Expenses, and Dividends

Make the journal entries necessary to record the following eight transactions.
a. Purchased inventory on account for \$130,000.
b. Sold goods for \$100,000 cash. The goods originally cost \$65,000.
c. Paid \$27,000 cash for employee wages.
d. Paid \$12,500 cash for advertising.
e. Sold goods for \$25,000 cash and \$60,000 on account (a total of \$85,000). The goods originally cost \$57,000.
f. Collected cash of \$47,000 from the \$60,000 receivable on account; the remaining \$13,000 is expected to be collected later.
g. Paid cash of \$55,000 on the \$130,000 payable on account; the remaining \$75,000 is expected to be paid later.
h. Paid cash dividends of \$8,500.

Practice exercise 3-18
Posting with Revenues, Expenses, and Dividends
Refer to the journal entries made in Practice 3-17. Construct a T-account representing each account impacted by those eight transactions. Post all of the journal entries to these T-accounts.
Compute the ending balance in each account. Assume that the beginning balance in each T account is zero.

Practice exercise 3-19
Preparing a Trial Balance
Refer to the T-accounts constructed in Practice 3-16 and Practice 3-18. Using the ending balances in those T-accounts, construct a trial balance. Note: The only account that is common to these two sets of T-accounts is the cash account; add the two cash account balances together to get the total balance.