Journal Entries with Revenues, Expenses, and Dividends
Response to the following problem:
Make the journal entries necessary to record the following eight transactions.
a. Purchased inventory on account for $130,000.
b. Sold goods for $100,000 cash. The goods originally cost $65,000.
c. Paid $27,000 cash for employee wages.
d. Paid $12,500 cash for advertising.
e. Sold goods for $25,000 cash and $60,000 on account (a total of $85,000). The goods originally cost $57,000.
f. Collected cash of $47,000 from the $60,000 receivable on account; the remaining $13,000 is expected to be collected later.
g. Paid cash of $55,000 on the $130,000 payable on account; the remaining $75,000 is expected to be paid later.
h. Paid cash dividends of $8,500.