How can I journalize these accounting problems?

Sigchi4life
Category:
Business & Finance

Question description

Needing some help journalizing transactions. I have gotten some of them but others I just cannot understand as well as for the adjustments that follow. Any help would be appreciated.

Sep 2 2012 - Company paid $6,000 rent expense for the retail store.
Sep 4 - Company sold 4 rugs for cash. The rugs cost $100 each and they were sold for $200 each. Its competitor sells the same rugs for $125
Sep 7 - Company purchased and received 500 rugs on account from IRC. Rugs cost $275 each. Terms are 3/10, n/45. Freight costs were $1000. Its competitor paid $290 for the same rugs. 
Sep 8 - Took out bank loan for $200,000. Loan is due Dec 31, 2015. Deposited funds into the business bank account. 
Sep 8 - Company sold 10 rugs on account to RHR. Sales price was $225 each, company cost was $95 each. Terms are 1/10, n/45.
Sep 10 - Company purchased 2 cash registers on account. Each cost $800 with resale value of $1,100 each. 
Sep 11 - Company returned 12 rugs purchased from IRC because they were defective.
Sep 13 - Business lunch paid with company cash for $125.
Sep 14 - BiWeekly salary of $1,200 paid for two weeks ended Sep 14 2012. 
Sep 15 - Owner purchased house for $350,000 and obtained a personal mortgage.
Sep 16 - Company paid for purchase from IRC.
Sep 20 - Owner won $150,000 from lottery ticket. Deposited $75,000 into the business bank account and used $75,000 to pay off the bank loan.
Sep 21 - Company received $1,000 from a customer for rugs. Unfortunately, the rugs have not arrived yet. Owner will deliver the rugs as soon as they arrive.
Sep 22 - Owner plans to purchase 2000 rugs for $150 each. 
Sep 24 - RHR complained that two of the rugs they received were not the right color. Company gave RHR a sales allowance in the amount of $250 and told RHR to keep the rugs.
Sep 28 - RHR paid their account
Sep 28 - Paid BiWeekly salary.
Sep 28 - Company paid for a 12 month insurance policy for $10,000. 
Sep 29 - $50,000 in receivables were collected that were outstanding as of Aug 31 2012. n/30
Sep 30 - Company paid $25,000 of the accounts payable, n/45

The following additional information exists:
1. Rugs for customer from Sep 21, 2012 arrived on Oct 10, 2012. Delivered to customer same day.
2. Received telephone bill dated Oct 21, 2012 for $500. Period of Sep 15-Oct 15.
3. Note payable is due June 30, 2013.
4. Owner counted inventory. Difference of $300. General ledger showed $300 more than what he had
5. Employee worked Sep 29 & 30 for year-end and will be paid for these days on Oct 12 pay cheque.
6. Salaries paid to employee for biWeekly pay of $1,200 in May 2012 were recorded in error to Advertising & Promotion.
7. Employee counted all office supplies on hand and found that $330 remained.
8. Insurance policy purchased on Sep 28 2012 is for period Oct 1, 2012- Sep 30, 2013.
9. Cash registers purchased have a useful life of 3 years. 
10. Store furniture and store equipment were purchased on Oct 1, 2007. Furniture have a useful life of 15 years and store equipment have a useful life of 10 years. Depreciation has not been recorded this year. 
11. $6,000 rent payment on Sep 2 included $1,000 for Sep 2012 rent, and the remainder was for Oct 2012 to Feb 2013.
12. There were no other owner contributions during the year other than the Sep 20 2012 item above. 

Tutor Answer

(Top Tutor) Daniel C.
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School: University of Maryland
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