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Clifton Said:

Journal entries help needed?

We Answered:

Dec 26
Issued the following checks as payment in full for miscellaneous billing:
Check 40110 to Sierra truck service for gas and truck repairs totaling $194.25
Dr Upkeep of trucks $194.25
Cr Cash in bank $194.25

Check 40111 to Mountain Rider magazine for advertising to be featured in current and future issues. The invoice balance is for $1475
Dr Prepaid advertising $1,475
Cr Cash in bank $1,475

Check 40112 for $1026 to Reed and Heisinger Insurance Agency for additional insurance coverage on the new storage areas
Dr Insurance expense $1,026
Cr Cash in bank $1,026

Check 40113 for $323.50 to Cuppinger and Fillips Accountancy for accounting services received
Dr Accounting fee expenses $323.50
Cr Cash in bank $323.50

Dec. 26 received a new shipment of Trail-Tracker snowmobiles and accessories for inventory. Invoice from Trailer Tracker presents the total List Price of this purchase of $33600, credit terms of 2/10, n/30, and FOB destination shippint terms. All merchandise purchases are recorded Net.

Item: Trail Tracker Qty: 8 Net cost per unit: $4116

Dr Merchandise inventory $32,928
Cr Accounts payable $32,928

Dec 26
Purchased for a special order, ten Solo model trailers from Fastwinn, Inc. Credit terms offered are 2/10, n/30 and the trailers for this special order are delivered by Fastweinn. The total list price of this purchase is $5000

Item: Norton Trailer Solo Qty: 10 Net Cost per unit: $490.00

Dr Merchandise inventory $4,900
Cr AP $4,900

Dec 26
Borrowed an additional $20000 cash by issuing a 90 day, 8%, short-term note payable to a private lender
Dr Cash in bank $20,000
Cr Note payable $20,000