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