PTS: 1 DIF: Challenging OBJ: LO: 2-02 NAT: BUSPROG: Analytic KEY: Application 8. On August 30th JumpStart pays numerous bills which include: Payment to the landlord for August rent - $2,300 Payment to the Gas & Electric Company for August’s bill $525 – Payment of employee wages for the last half of August $1,750 – Payment of shopping center’s parking lot cleaning fee $275 – Journalize payments as one compound journal entry. ANS: Aug 30 Rent Expense 2,300 Utilities Expense 525 Wages Expense 1,750 Maintenance Expense 275 Cash 4,850 PTS: 1 DIF: Challenging OBJ: LO: 2-02 NAT: BUSPROG: Analytic KEY: Bloom’s: Application 9. On October 30th Damien Lawson withdraws $3,330 from JumpStart for personal use. Journalize this event. ANS: Oct 30 Damien Lawson, Drawing 3,330 Cash 3,330 PTS: 1 DIF: Easy OBJ: LO: 2-02 NAT: BUSPROG: Analytic KEY: Bloom’s: Application 10. Prepare a journal entry for the purchase of a truck on April 4 for $85,700, paying $15,000 cash and the remainder on account. ANS: April 4 Truck 85,700 Cash 15,000 Accounts Payable 70,700 PTS: 1 DIF: Easy OBJ: LO: 2-02 NAT: BUSPROG: Analytic KEY: Bloom’s: Application 11. Prepare a journal entry on October 12 for the fees earned on account, $14,600. ANS: Oct 12 Accounts Receivable 14,600 Fees Earned 14,600 PTS: 1 DIF: Challenging OBJ: LO: 2-02 NAT: BUSPROG: Analytic KEY: Bloom’s: Application
PTS: 1 DIF: Challenging OBJ: LO: 2-02 NAT: BUSPROG: Analytic KEY: Application 8. On August 30th JumpStart pays numerous bills which include: Payment to the landlord for August rent - $2,300 Payment to the Gas & Electric Company for August’s bill – $525 Payment of employee wages for the last half of August – $1,750 Payment of shopping center’s parking lot cleaning fee – $275 Journalize payments as one compound journal entry. ANS: Aug 30 Rent Expense 2,300 Utilities Expense 525 Wages Expense 1,750 Maintenance Expense 275 Cash 4,850 PTS: 1 DIF: Challenging OBJ: LO: 2-02 NAT: BUSPROG: Analytic KEY: Bloom’s: Application 9. On October 30th Damien Lawson withdraws $3,330 from JumpStart for personal use. Journalize this event. ANS: Oct 30 Damien Lawson, Drawing 3,330 Cash 3,330 PTS: 1 DIF: Easy OBJ: LO: 2-02 NAT: BUSPROG: Analytic KEY: Bloom’s: Application 10. Prepare a journal entry for the purchase of a truck on April 4 for $85,700, paying $15,000 cash and the remainder on account. ANS: April 4 Truck 85,700 Cash 15,000 Accounts Payable 70,700 PTS: 1 DIF: Easy OBJ: LO: 2-02 NAT: BUSPROG: Analytic KEY: Bloom’s: Application 11. Prepare a journal entry on October 12 for the fees earned on account, $14,600. ANS: Oct 12 Accounts Receivable 14,600 Fees Earned 14,600 PTS: 1 DIF: Challenging OBJ: LO: 2-02 NAT: BUSPROG: Analytic KEY: Bloom’s: Application
Testbank-for-Financial-Accounting-13th-edition-by-Carl-S-Warren.docx