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 Cash $10,000 Accounts Receivable $ 5,000 Sales Cost of Goods Sold Inventory Credit $15,000 $5,000 $5,000 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 Inventory Accounts Payable Debit Credit $15,000 $15,000 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 Salary Expense $1,000 Salaries Payable $1,500 Cash Credit $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 Supplies Accounts Payable Debit Credit $500 $500 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 Cash Accounts Receivable Debit Credit $2,500 $2,500 Transaction 6 Mike Company paid utilities of $500. Account Debit Credit Transaction 6 Mike Company paid utilities of $500. Account Utilities Expense Cash Debit Credit $500 $500 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 Accounts Payable Cash Debit Credit $3,000 $3,000 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 Rent Expense Cash Debit Credit $1,500 $1,500 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 Depreciation Expense Accumulated Depreciation Debit Credit $2,000 $2,000 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 Supplies Expense Supplies Debit Credit $1,500 $1,500 Transaction 11 $1,000 of prepaid insurance expired. Account Debit Credit Transaction 11 $1,000 of prepaid insurance expired. Account Insurance Expense Prepaid Insurance Debit Credit $1,000 $1,000 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 Interest Expense Cash Debit Credit $300 $300 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 Salaries Expense Salaries Payable Debit Credit $1,000 $1,000 Transaction 14 Mike Company declared and paid $500 in dividends. Account Debit Credit Transaction 14 Mike Company declared and paid $500 in dividends. Account Retained Earnings Cash Debit Credit $500 $500