Concept explainers
Exercise 2-50 Journalizing Transactions
Remington Communications has been providing cellular phone service for several years. During
November and December. the following transactions occurred:
Nov. 2 Remington received S2,400 for November phone service from Enrico Company. 10
6 Remington purchased S4,750 of supplies from Technology Associates on
10 Remington paid S5,250 to its hourly employees for their weekly wages.
15 Remington paid S4, 750 to Technology Associates in full settlement Of its payable.
28 Remington paid S2, 150 for utilities used during November.
30 Remington received a bill from Monticello Construction for Sl,230 for repairs made to
Remington’s loading dock on November I S. Remington plans to pay the bill in early December.
Dec. 10 Remington paid S I ,230 to Monticello Construction to settle the repair bill received on
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Chapter 2 Solutions
Cornerstones of Financial Accounting
- EXERCISE 14 Buchanan Company sells gift certificates redeemable only when merchandise is purchased. The certificates have an expiration date of two years after issuance. Upon redemption or expiration, Buchanan recognizes the unearned revenue as realized. Data for the year are as follows: Unearned revenue, January 1- P 750,000 Gift certificates sold – P 3,000,000 Gift certificates redeemed - P 2,750,000 Expired gift certificates – P 150,000 Cost of goods sold rate is 75%. REQUIRED: Prepare all journal entries to the foregoing.arrow_forwardQuestion Content Area On October 1, Black Company receives a 4% interest-bearing note from Reese Company to settle a $17,400 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a. $174 b. $181 c. $171 d. $184arrow_forwardXEXERCISE 11-14 On July 1, Klaus Co. acquired a new computer with a list price of $130,000. Klaus recerve i trade-in allowance of $20,000 on an old computer of a similar type, paid cash of $20,00 gave a series of five notes payable for the remainder. The following information about the al computer is obtained from the account in the office equipment ledger: cóst, $82,500; acum lated depreciation on December 31, the end of the preceding fiscal year, $62,500; ánnua preciation, $15,000. Journalize the entries to record: (a) the current depreciation of the u computer to the date of trade-in, (b) the transaction on July 1 for financial reporting purpo ENTRIES FOR GAIN ON TRADE OF PLANT ASSET Objective 7arrow_forward
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