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Argosy, Inc. has ten transactions during 2017 as follows:
Inventory purchases on credit for $2,800 (assume perpetual inventory system).
Merchandise sales to customers for $4,000 cash; $3,000 of related inventory cost.
Employees earn wages of $1,000, which are settled / paid during 2017.
Cash receipts from customers in the amount of $2,200 for credit sales made during 2016.
Payments to suppliers of $4,000 for credit purchases made during 2016.
Declaration and payment of cash dividends of $5,000.
Purchase of machinery for $8,000 with short-term notes payable.
Payment for short-term notes payable of $1,000, which includes $750 of interest from 2016.
Credit merchandise sales to customers for $6,000, with $3,900 of related inventory cost.
Payment of utility billings received in early 2017 for services received during 2016 for $1,200.
Required: Record the journal entries for these transactions (ignore dating the JE’s)
| Trans # | Account Description | Debit | Credit | B/S Effect | Perm/Temp |
| 1 | |||||
| 2 | |||||
| 3 | |||||
| 4 | |||||
| 5 | |||||
| 6 | |||||
| 7 | |||||
| 8 | |||||
| 9 | |||||
| 10 | |||||
.
Expert Answer
| 1 | Inventory | 2800 | |
| Accounts payable | 2800 | ||
| 2 | Cash | 4000 | |
| Sales revenue | 4000 | ||
| Cost of goods sold | 3000 | ||
| Inventory | 3000 | ||
| 3 | Wages expense | 1000 | |
| Cash | 1000 | ||
| 4 | Cash | 2200 | |
| Accounts receivable | 2200 | ||
| 5 | Accounts Payable | 4000 | |
| Cash | 4000 | ||
| 6 | Dividend | 5000 | |
| Cash | 5000 | ||
| 7 | Machinery | 8000 | |
| Notes payable | 8000 | ||
| 8 | Interest payable | 750 | |
| Notes payable | 250 | ||
| Cash | 1000 | ||
| 9 | Accounts receivable | 6000 | |
| Sales revenue | 6000 | ||
| Cost of goods sold | 3900 | ||
| Inventory | 3900 | ||
| 10 | Accounts payable | 1200 | |
| Cash | 1200 |
