Question

er 3 Homework Saved Help Save Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate com Ret 7 E3-10 Recording Journal Entries and Determining Net Income [LO 3-2, LO 3-3] Cintu is a large marketer and distributor of food service products serving, restaurants, hotels, schools, hospitals, and other The following transactions are typical of those that occurred in a recent year, but the amounts are simplified. a. Borrowed $101.000 from a bank, signing a short-term note payable. b. Provided $106,300 in service to customers, with $100,100 on account and the rest received in cash. c. Purchased equipment for $146,000 in cash. d. Incurred and paid employee wages of $2,450. e. Received $430 on account from a customer. f. Incurred and paid $4,850 cash for travel costs during the year. g. Paid $9,100 cash on accounts payable. h. Incurred $24,300 in utility expenses during the year, of which $18,800 was paid in cash and the rest owed on account. Required: 1. For each of the above transactions, prepare accrual basis journal entries. 2. Calculate the company's preliminary net income. Answer is not complete. < Prev 4 of 6 Next >

Answer 1

1. Journal Entries -

Journal Entries Date Accounts Title Debit Credit Cash $ 101,000 Notes Payable (Short Term) $ 101,000 (Being cash received against short term notes issued) a b Cash $ 6,200 Accounts Receivable $ 100,100 Service Revenue (Being Service Revenue Earned) $ 106,300 C Equipment $ 146,000 Cash (Being Equipment Purchased) $ 146,000 d $ 2,450 Wages Expense Cash (Being Wages Paid) $ 2,450 e Cash $ 430 Accounts Receivable (Being Cash Received on Account) $ 430 f Travel Expense $ 4,850 Cash (Being Tavel expense incurred and Paid) $ 4,850 Accounts Payable $ 9,100 Cash (Being Payment made on account) $ 9,100 h Utilities Expense $ 24,300 Cash $ 18,800 Accounts Payable $ 5,500 (Being Utilities Expense paid and Accrued)

2. Preliminary Net Income -

Cintu Preliminary Net Income Service Revenue $ 106,300 Expenses: Wages Expense Travel Expense Utilities Expense $ 2,450 $ 4,850 $ 24,300 $ 31,600 Net Income $ 74,700