59A
ALTERNATIVE SOLUTION
61A
JOURNALS
GENERAL JOURNAL
PURCHASES JOURNAL
SALES JOURNAL
CASH RECEIPTS JOURNAL
CASH DISBURSEMENTS JOURNAL
DATE Account Titles and Explanation REF. DEBIT CREDIT
2014
12 3 Allowance for Doubtful Accounts 113 3700
Accounts Receivable–Iwanaga Plumbing and Heating 112/190 3700
To record the write-off of an
account due to bankruptcy.
12 9 Payroll Tax Expense 730 3 5 0
FICA Taxes Payable 214 3 5 0
Inventory 120 3550
To record defective copper tubing returned
to supplier.
12 17 Notes Receivable 115 45200
Accounts Receivable–Bilder Construction 112/180 45200
Dividends Payable 250 8280
To record the declaration of a $1.80 per
share dividend to holders of record
on December 26, payable January 14, 2015
(6,300 shs – 1,700 shs = 4,600 shs ×$1.80 = $8,280)
GENERAL JOURNAL Page 9
DATE Account Titles and Explanation REF. DEBIT CREDIT
2014
12 26 Notes Receivable 115 14000
Accounts Receivable–Beverly’s Building Products 112/175 14000
12 31 Depreciation Expense 711 3 5 0
Accumulated Depreciation–Trucks 164 3 5 0
To record depreciation on lift sold
($7,900 – $900 = $7,000; $7,000 ÷ 10 yrs ×1/2= $350)
12 31 Supplies Expense 631 2870
Supplies 126 2870
To record office supplies used during
the year
($3,680 – $810 = $2,870)
GENERAL JOURNAL Page 10
(b)
DATE Account Titles and Explanation REF. DEBIT CREDIT
2014
12 31 Miscellaneous Expense 649 1164
Insurance Expense 722 4656
12 31 Salaries and Wages Expense 726 5800
FICA Taxes Payable 214 4 1 0
Federal Withholding Taxes Payable 216 9 8 0
State Withholding Taxes Payable 218 2 0 0
Salaries and Wages Payable 212 4210
To record wages earned but unpaid at
December 31, 2014.
12 31 Interest Expense 905 1536
Discount on Bonds Payable 273 1536
To record amortization of bond discount
for 2014.
($6,400 ×12/50)
GENERAL JOURNAL Page 11
(d)
(c)
65A
DATE Account Titles and Explanation REF. DEBIT CREDIT
2014
12 31 Interest Receivable 118 1465
Interest Revenue 820 1465
To record interest receivable at
December 31, 2014.
12 31 Utilities Expense 732 8 6 0
Accounts Payable–Northern Electric 201/# 5 9 0
Accounts Payable–City of Rockford 201/# 2 7 0
To record utilities bills unpaid at
December 31, 2014.
Office Equipment:
($32,800 – $2,000) ×1/7 = $4,400
$6,100 ×2/4 ×1/2 = 1,525
$5,925
Trucks:
GENERAL JOURNAL Page 12
(g)
(i)
DATE Account Titles and Explanation REF. DEBIT CREDIT
2014
12 31 Income Tax Expense 990 21100
Income Taxes Payable 215 21100
To record the balance of tax expense for
2014 as follows:
$ 50,000 @ 15% = $ 7,500
25,000 @ 25% = 6,250
179,480 @ 34% = 61,023
5% surtax on income over $100,000:
not to exceed $11,750 7,724
Total 82,497
CLOSING ENTRIES 12/31/14
12 31 Sales Revenue 401 564 0052
Interest Revenue 820 4615
GENERAL JOURNAL Page 13
67A
DATE Account Titles and Explanation REF. DEBIT CREDIT
2014
12 31 Income Summary 350 547 2684
Sales Returns and Allowances 412 1 4060
Sales Discounts 414 7 7181
Cost of Goods Sold 505 396 9262
Payroll Tax Expense 730 8 7211
Utilities Expense 732 1 7529
Interest Expense 905 4 0051
Loss on Disposal of Plant Assets 921 5 0 0
Income Tax Expense 999 9 3100
To close debit balance accounts to
Income Summary
GENERAL JOURNAL Page 14
PUR.
DATE ORDER ACCOUNT CREDITED ACCT. AMOUNT
2014 NO. NO.
12 2 315 Edward’s Plumbing Supplies, Inc. n/60 18 24 320
8 316 Phoenix Plastics 1/10, n/30 14 52 700
PURCHASES JOURNAL PAGE 12
69A
DATE INVOICE ACCOUNT DEBITED ACCT. ACCT. REC. DR
2014 NO. NO. SALES REV. CR INVENTORY CR
12 1 1201 Beverly’s Building Products 175 13 150 10 520
3 1202 Bilder Construction Co. 180 44 900 35 920
4 1203 Coconino Contractors, Inc. 160 10 300 8 240
SALES JOURNAL PAGE 12
COST OF GOODS
SOLD DR
SUNDRY ACCOUNTS
SALES ACCOUNTS SALES
DATE DESCRIPTION CASH DISCOUNTS REF RECEIVABLE REVENUE ACCT.
2014 DR DR CR CR NO. ✓DR CR
12 1
Swanson Brothers Construction
23569 481 133 24050
4 The Potts Company 49294 1006 122 50300
5 Rankin Plumbing Corp. 72863 1487 166 74350
505 ✔9834
120 ✔9834
12 Trudy’s Plumbing 28714 586 155 29300
18 Trudy’s Plumbing 28273 577 155 28850
CASH RECEIPTS JOURNAL Page 12
SUNDRY ACCOUNTS
ACCOUNTS
DATE CHECK PAYEE CASH REF PAYABLE INVENTORY
ACCT.
2014 NO. CR DR CR NO. ✔DR CR
12 2 1580 Oxenford Copperworks 26400 35 26400
216 ✔900
218 ✔190
9 1585 Scooter Gordon 600 610 ✔600
9 1586 Phoenix Plastics 6750 14 6750
10 1587 Smith Pipe Company 37719 39 38100 381
216 ✔1067
218 ✔225
26 1595 Dionne Schivone 83000 330 ✔83000
29 1596 Wayne McManus 2650 140 ✔2650
30 1597 Northern Star 500 610 ✔500
30 1598 Standard Oil Company 925 644 ✔925
30 1599 Chicago Trust Company 15000 135 ✔15000
CASH DISBURSEMENTS JOURNAL Page 18
73A
GENERAL LEDGER
BALANCE
39610
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
GENERAL LEDGER ACCOUNTS
ACCOUNT: Cash 101
BALANCE
DATE EXPLANATION REF. DEBIT CREDIT
2014
ACCOUNT: Petty Cash 105
BALANCE
253643
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
ACCOUNT: Accounts Receivable 112
75A
BALANCE
40000
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
ACCOUNT: Notes Receivable 115
GENERAL LEDGER ACCOUNTS
BALANCE
13520
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
ACCOUNT: Allowance for Doubtful Accounts 113
BALANCE
580
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
ACCOUNT: Interest Receivable 118
GENERAL LEDGER ACCOUNTS
BALANCE
3220
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
ACCOUNT: Prepaid Insurance 130
BALANCE
450960
531960
522126
525676
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
11/30 Balance ✔
12/11 CR 12 9834
12/15 J 9 3550
ACCOUNT: Inventory 120
BALANCE
1650
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
ACCOUNT: Supplies 126
77A
BALANCE
2800
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
ACCOUNT: Prepaid Rent 131
BALANCE
GENERAL LEDGER ACCOUNTS
DATE EXPLANATION REF. DEBIT CREDIT
2014
ACCOUNT: Other Assets 135
BALANCE
DATE EXPLANATION REF. DEBIT CREDIT
2014
ACCOUNT: Buildings 145
BALANCE
DATE EXPLANATION REF. DEBIT CREDIT
2014
ACCOUNT: Land 140
BALANCE
BALANCE
DATE EXPLANATION REF. DEBIT CREDIT
2014
GENERAL LEDGER ACCOUNTS
ACCOUNT: Accum. Depr.–Buildings 146
BALANCE
DATE EXPLANATION REF. DEBIT CREDIT
2014
ACCOUNT: Trucks 163
DATE EXPLANATION REF. DEBIT CREDIT
2014
ACCOUNT: Equipment 151
BALANCE
DATE EXPLANATION REF. DEBIT CREDIT
2014
GENERAL LEDGER ACCOUNTS
ACCOUNT: Accum. Depr.–Equip. 152
79A
BALANCE
DATE EXPLANATION REF. DEBIT CREDIT
2014
ACCOUNT: Accum. Depr.–Trucks 164
BALANCE
DATE EXPLANATION REF. DEBIT CREDIT
2014
ACCOUNT: Notes Payable 200
BALANCE
86352
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
ACCOUNT: Accounts Payable 201
BALANCE
1906
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
GENERAL LEDGER ACCOUNTS
ACCOUNT: Salaries and Wages Payable 212
BALANCE
781
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
ACCOUNT: FICA Taxes Payable 214
BALANCE
15789
DATE EXPLANATION REF. DEBIT CREDIT
2014
1/1 Balance ✔
ACCOUNT: Income Taxes Payable 215