Question

Journalize the following transactions:

Answer 1

Answer:

The Journal entries are as follows:

(i) On January 3,

Salaries expenses A/c Dr. $110,000

       To salaries payable                   $110,000

(To record the salaries expenses)

(ii) On January 3,

Merchandise inventory A/c Dr. $55,692

Raw material inventory A/c Dr. $37,128

           To accounts payable A/c             $92,820

(To record the merchandise and raw material)

Shipping cost A/c Dr. $550

      To bank A/c                  $550

(To record the shipping cost)

(iii) On January 3,

Accounts receivables A/c Dr. $22,000

          To sales                                        $22,000

(To record the sales on account)

cost of goods sold A/c Dr. $15,180

          To Merchandise inventory    $15,180

(To record the cost of goods sold)

(iv) Cash A/c Dr. $16,850

         To accounts receivables    $16,850

(To record the cash received)