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Accounting
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28 Nov 2019

47 Carion sells the following goods for cash during January:

5 Jan to Maurice K 386 68

19 Jan to Harris K 715 125

28 Jan to Merton K 430 75

What are the correct entries in Carion’s general ledger?

A Dr Sales K1, 799 Dr Sales tax K268 Cr Cash K2, 067

B Dr Cash K2, 067 Cr Sales K1, 799 Cr Sales tax K268

C Dr Sales K1, 531 Dr Sales tax K268 Cr Cash K1, 799

D Dr Cash K1, 799 Cr Sales K1, 531 Cr Sales tax K268

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Sixta Kovacek
Sixta KovacekLv2
15 Aug 2019
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Related questions

The following items were selected from among the transactions completed by Sherwood Co. during the current year:

Mar. 1 Purchased merchandise on account from Kirkwood Co., $366,000, terms n/30.
31 Issued a 30-day, 6% note for $366,000 to Kirkwood Co., on account.
Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31.
Jun. 1 Borrowed $198,000 from Triple Creek Bank, issuing a 45-day, 8% note.
Jul. 1 Purchased tools by issuing a $270,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%.
16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $198,000. (Journalize both the debit and credit to the notes payable account.)
Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16.
30 Paid Poulin Co. the amount due on the note of July 1.
Dec. 1 Purchased equipment from Greenwood Co. for $400,000, paying $108,000 cash and issuing a series of ten 8% notes for $29,200 each, coming due at 30-day intervals.
22 Settled a product liability lawsuit with a customer for $320,000, payable in January. Accrued the loss in a litigation claims payable account.
31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.
Required:
1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar.
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
a. Product warranty cost, $29,000.
b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.

Chart of Accounts

CHART OF ACCOUNTS
Sherwood Co.
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
127 Tools
128 Accumulated Depreciation-Tools
LIABILITIES
210 Accounts Payable-Kirkwood Co.
211 Accounts Payable-Greenwood Co.
212 Accounts Payable-Poulin Co.
213 Interest Payable
214 Notes Payable
215 Salaries Payable
216 Social Security Tax Payable
217 Medicare Tax Payable
218 Employees Federal Income Tax Payable
219 Employees State Income Tax Payable
220 Group Insurance Payable
221 Bond Deductions Payable
224 Federal Unemployment Tax Payable
225 State Unemployment Tax Payable
226 Vacation Pay Payable
227 Unfunded Pension Liability
228 Product Warranty Payable
229 Litigation Claims Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Salaries Expense
524 Depreciation Expense-Building
525 Delivery Expense
526 Repairs Expense
529 Selling Expenses
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Depreciation Expense-Tools
534 Insurance Expense
535 Supplies Expense
536 Payroll Tax Expense
537 Vacation Pay Expense
538 Pension Expense
539 Cash Short and Over
540 Product Warranty Expense
541 Miscellaneous Expense
710 Interest Expense
720 Litigation Loss

Journal

1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Scroll down to access page 12 of the journal. Round your answers to the nearest dollar.

PAGE 11

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
A. Product warranty cost, $29,000.
B. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.

PAGE 12

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

Adjusting Entries

2

3

4

5

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