Bobcat Coffee had sales of goods totaling $200,000, receiving$150,000 in cash and $50,000 on...

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Accounting

Bobcat Coffee had sales of goods totaling $200,000, receiving$150,000 in cash and $50,000 on account. The cost of the goods soldwere $60,000.
Bobcat Coffee purchased $80,000 of inventory. All purchaseswere on account.
Bobcat Coffee paid salaries of $50,000. This was payment forsalaries of $35,000 and $15,000 that was payable from lastyear.
Bobcat Coffee purchased $7,000 of supplies. All of thesepurchases were on account.
Bobcat Coffee received $40,000 cash from customers who had beengranted credit. The entire amount collected relates to sales fromlast year.
Bobcat Coffee paid utilities for the current month of$5,000.
Bobcat Coffee paid $45,000 to its suppliers related to previouspurchases on account.
Bobcat Coffee paid $12,000 in rent for the year.
Bobcat Coffee incurred depreciation expense for the year on oldequipment $2,000.
After counting its supplies on hand, Bobcat Coffee determinedthat they had $6,000 in supplies on-hand. [Hint: What is the amountof supplies that has been used in the month? What journal entryneeds to be prepared?]
$9,000 of prepaid insurance expired.
Bobcat Coffee paid $300 of interest on its long-term debt.
Bobcat Coffee incurred $17,000 of salaries expense in December,but will pay this amount next month (January).
Bobcat Coffee declared and paid $4,000 in cash dividends.
Bobcat Coffee bought a new piece of equipment for $50,000.Bobcat coffee financed the equipment with a note from thebank.
The equipment purchased has a 10 year useful life and noexpected salvage value. Depreciation is calculated on astraight-line basis.
Bobcat Coffee pre sold $3,000 of coffee in December 20x4 to acustomer for a week-long conference scheduled for January 20X5. Thecustomer paid upfront for the large order a month ahead of time(December) to secure the order. The coffee was then delivered asplanned for the conference in January.
REQUIRED:
1. Prepare journal entries for all of the abovetransactions.

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Bobcat Coffee
Journal entries
Date	Account	Debit	Credit	Calculation
1a	Cash	$ 150,000
	Accounts Receivable	$ 50,000
	Sales		$ 200,000

1b	Cost of goods sold	$ 60,000
	Inventory		$ 60,000

2	Inventory	$ 80,000
	Accounts Payable		$ 80,000

3	Salaries expense	$ 35,000
	Salaries Payable	$ 15,000
	Cash		$ 50,000

4	Supplies	$ 7,000
	Accounts Payable		$ 7,000

5	Cash	$ 40,000
	Accounts Receivable		$ 40,000

6	Utilities expense	$ 5,000
	Cash		$ 5,000

7	Accounts Payable	$ 45,000
	Cash		$ 45,000

8	Rent expense	$ 12,000
	Cash		$ 12,000

9	Depreciation expense	$ 2,000
	Accumulated Depreciation		$ 2,000

10	Supplies expense	$ 1,000		=7,000-6,000
	Supplies		$ 1,000

11	Insurance expense	$ 9,000
	Prepaid Insurance		$ 9,000

12	Interest expense	$ 300
	Cash		$ 300

13	Salaries expense	$ 17,000
	Salaries Payable		$ 17,000

14	Dividends	$ 4,000
	Cash		$ 4,000

15	Equipment	$ 50,000
	Notes Payable		$ 50,000

16	Depreciation expense	$ 5,000		=50,000/10 yrs
	Accumulated Depreciation		$ 5,000
	*Assuming equipment is purchased at start of the year, so full year depr*

17	Cash	$ 3,000
	Unearned Revenue		$ 3,000

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Transcribed Image Text

In: AccountingBobcat Coffee had sales of goods totaling $200,000, receiving$150,000 in cash and $50,000 on account....Bobcat Coffee had sales of goods totaling $200,000, receiving$150,000 in cash and $50,000 on account. The cost of the goods soldwere $60,000.Bobcat Coffee purchased $80,000 of inventory. All purchaseswere on account.Bobcat Coffee paid salaries of $50,000. This was payment forsalaries of $35,000 and $15,000 that was payable from lastyear.Bobcat Coffee purchased $7,000 of supplies. All of thesepurchases were on account.Bobcat Coffee received $40,000 cash from customers who had beengranted credit. The entire amount collected relates to sales fromlast year.Bobcat Coffee paid utilities for the current month of$5,000.Bobcat Coffee paid $45,000 to its suppliers related to previouspurchases on account.Bobcat Coffee paid $12,000 in rent for the year.Bobcat Coffee incurred depreciation expense for the year on oldequipment $2,000.After counting its supplies on hand, Bobcat Coffee determinedthat they had $6,000 in supplies on-hand. [Hint: What is the amountof supplies that has been used in the month? What journal entryneeds to be prepared?]$9,000 of prepaid insurance expired.Bobcat Coffee paid $300 of interest on its long-term debt.Bobcat Coffee incurred $17,000 of salaries expense in December,but will pay this amount next month (January).Bobcat Coffee declared and paid $4,000 in cash dividends.Bobcat Coffee bought a new piece of equipment for $50,000.Bobcat coffee financed the equipment with a note from thebank.The equipment purchased has a 10 year useful life and noexpected salvage value. Depreciation is calculated on astraight-line basis.Bobcat Coffee pre sold $3,000 of coffee in December 20x4 to acustomer for a week-long conference scheduled for January 20X5. Thecustomer paid upfront for the large order a month ahead of time(December) to secure the order. The coffee was then delivered asplanned for the conference in January.REQUIRED:1. Prepare journal entries for all of the abovetransactions.