Question

i need 10-11-12

bhoot Chapter 4 Worksheet 3 9. On April 1, 2018, Lancaster's Landscaping paid $36,000 for 12 months of rent to store their equipment. • State the journal entry to record the rent payment on 04/01/18. • State the adjusting journal entry to record the rent incurred on 12/31/18. 60 On June 1, 2018 Lannister's Landscaping borrowed $200,000 at 12% annual interest and signed a note. The first payment isn't due until the maturity date (01/01/2025). • State the journal entry to record the note on 06/01/18. • State the adjusting journal entry to record the interest incurred on 12/31/18 (IDOn July 1, 2018 Lannister's Landscaping purchased a plow truck for $175,000, paying S150,000 in cash and $25,000 on account. The company estimated annual depreciation to be $20,000. • State the journal entry to record the purchase of the truck on 07/01/18 • State the adjusting journal entry to record the depreciation incurred on 12/31/18 2. On December 31, 2018, declared $250,000 of cash dividends to be paid next month • State the journal entry to record the dividend. ACNT1010: FINANCIAL ACCOUNTING

Answer 1

10. Information given in the problem

Amount borrowed - $200,000, Interest rate at 12% annually, Date of borrowing- June, 1, 2018.

a. Journal entry to record the note on 6/1/2018.

DR CR

Cash/Bank Account 200000

To Note Payable 200000

b.Adjusting journal entry to record the interest incurred as on 12/31/2018.

Interest Expense 14000

To Interest Payable 14000

( On 1, June 2018 borrowed $200000 @ 12% interest, Interest = 200000*12%= 24000 annually.

From 1, June 2018 to 31, Dec 2018, Interest = (24000*7)/12 = 14000.)

11.Information given in the problem

On 1, July 2018 Purchased plow truck for $175000 by paying $150000 in cash and $25000 on account.

Estimated annual depreciation =20000.

a. Journal entry to record the purchase of the truck on 1, July 2018.

DR CR

Truck (Asset Account) 175000

To Cash 150000

To Accounts Payable    25000

b.Adjusting journal entry to record the depreciation incurred on 12/31/2018.

Depreciation expense 10000

To Accumulated depreciation 10000

(estimated annual depreciation = 20000,

From 1, July 2018 to 31, Dec 2018, depreciation= (20000*6)/12 = 10000.)

12.Information given in the problem

On 31, December 2018, declared cash dividend of $250000 to be paid next month.

Journal entry to record the dividend on 12/31/2018.

DR CR

Retained Earnings Account / Dividend 250000

To Dividend payable 250000

( When dividend is declared, retained earnings account is debited or dividend account is debited, if the dividend account is debited it is reduced from retained earnings at the end of the year and credited to dividend payable account as it is not yet paid.)