Question

please exaplain your answers and write by using journal entries

18. Alpha purchased equipment on credit but did not record it. No payments were made during the year and no AJE was recorded for the depreciation on the equipment. 19. Alpha failed to record an AJE for interest earned on a note receivable. The interest won't be received until next year. 20. Alpha received cash from a bank but erroneously recorded it as a cash sale instead of a loan that must be repaid next year (ignore interest). 21. Alpha paid cash for one year of rent in the third month of the year but erroneously recorded it as cash paid to satisfy an account payable. Alpha also failed to record the required AJE for the rent used during the year 22. Alpha recorded the credit purchase of supplies as a debit to Supplies and a credit to Cash. 23. Alpha made a cash sale but erroneously recorded it as cash received from a customer as payment to satisfy an existing account receivable. 24. Alpha failed to record the return of inventory to the vendor for cash. Assume the use of the periodic inventory system 25. Alpha failed to record the following AJE: The Sales account includes a $5,000 payment received in advance from a customer. By year end, only $3,000 of the merchandise had been delivered to the customer. 26. Alpha failed to record rent paid in advance to its landlord. By year end, all but one month of the rent had been used. [This omission includes both a transaction and an AJE. 27. Failed to record AJE: Salaries are paid every Friday for a 5-day work week. The normal payroll is $40,000. The year-end falls on a Tuesday this year.

Answer 1

No.	Dr/Cr	Particulars	Debit	Credit
18	Dr.	Equipment	XXX
	Cr.	Accounts Payable		XXX
		(Alpha purchased equipment on credit)
	Dr.	Depreciation expense A/c	XXX
	Cr.	Accumulated depreciation A/c		XXX
		(To record depreciaiton for the period)
19	Dr.	Interest receivable A/c	XXX
	Cr.	Interest Income A/c		XXX
		(Interest on notes receivable for the period)
20	Dr.	Cash Sale A/c	XXX
	Cr.	Loan Payable A/c		XXX
		(Adjustment entry to rectify sales and to record loan payable)
21	Dr.	Prepaid Rent A/c	XXX
	Cr.	Accounts Payable A/c		XXX
		(Adjustment entry to rectify Accounts Payable and to record Prepaid rent)
	Dr.	Rent A/c	XXX
	Cr.	Prepaid rent A/c		XXX
		(Adjustment entry to record rent expenses for the period)
22	Dr.	Cash A/c	XXX
	Cr.	Accounts Payable A/c		XXX
		(Adjustment entry to rectify cash and to record Accounts Payable)
23	Dr.	Accounts Receivable A/c	XXX
	Cr.	Sales A/c		XXX
		(Adjustment entry to rectify Accounts receivable and to record Sales)
24	Dr.	Sales returns A/c	XXX
	Cr.	Cash A/c		XXX
	Dr.	Inventory A/c	XXX
	Cr.	Cost of goods sold A/c		XXX
		(To record sales returns and restate the inventory)
25	Dr.	Cash A/c	5,000
	Cr.	Advance received A/c		5,000
		(To record advance received)
	Dr.	Advance received A/c	3,000
	Cr.	Sales A/c		3,000
26	Dr.	Prepaid rent A/c	XXX
	Cr.	Cash A/c		XXX
		(To record prepaid rent paid)
	Dr.	Rent A/c	XXX
	Cr.	Prepaid rent A/c		XXX
		(To record rent expense for the period)
27	Dr.	Salaries expense A/c	16,000
	Cr.	Salaries Payable A/c		16,000
		(To record salary for 2 days)
28	Dr.	Prepaid Rent A/c	1,600
	Cr.	Rent expense A/c		1,600
		(Excess one month rent to be shown as Prepaid)
29	Dr.	Office Supplies A/c	3,000
	Cr.	Inventory A/c		3,000
		(Assuming entire purchase is kept as inventory, office supplies used for period is shown as expense)
30	Dr.	Unearned revenue A/c	13,000
	Cr.	Revenue A/c		13,000
		(To record revenue)
31	Dr.	Interest expense A/c	800
	Cr.	Interest Payable A/c (20000*12%*3/9)		800
		(Interest expense for the period)
32	Dr.	Unearned revenue A/c	1,500
	Cr.	Rent revenue A/c		1,500
		(To record revenue for the period)
33	Dr.	Inventory A/c	XXX
	Cr.	Cash A/c		XXX
	Dr.	Accounts Payable A/c	XXX
	Cr.	Supplies A/c		XXX
		(To record inventory and return the adjustment entry posted)
34	Dr.	Accounts Receivable A/c	XXX
	Cr.	Sales A/c		XXX
		(Adjustment entry to rectify Accounts receivable and to record Sales)
35	Dr.	Cash A/c	XXX
	Cr.	Sales A/c		XXX
		(To record Cash sale)
36	Dr.	Accounts Payable A/c	XXX
	Cr.	Cash A/c		XXX
		(Adjustment entry to rectify Accounts Payable and Cash)
37	Dr.	Inventory A/c	XXX
	Cr.	Accounts Payable A/c		XXX
		(To record inventory purchased)
38	Dr.	Sales A/c	XXX
	Cr.	Accounts Receivable A/c		XXX
		(Adjustment entry to rectify)
39	Dr.	Accounts receivable A/c	XXX
	Cr.	Cash A/c		XXX
		(Adjustment entry to rectify)
40	Dr.	Depreciation expense A/c	XXX
	Cr.	Accumulated depreciation A/c		XXX
		(To record depreciaiton for the period)