I need help checking my journal entries. During the first quarter of 2022,...
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Accounting
I need help checking my journal entries.
During the first quarter of 2022, the following transactions occurred:
1. | On February 1, Sheffield collected fees of $10,800 in advance. The company will perform $900 of services each month from February 1, 2022, to January 31, 2018. | |
2. | On February 1, Sheffield purchased computer equipment for $7,875 plus sales taxes of $525. $2,625cash was paid with the rest on account. Check #455 was used. | |
3. | On March 1, Sheffield acquired a patent with a 10-year life for $8,400 cash. Check #456 was used. | |
4. | On March 28, Sheffield recorded the quarters sales in a single entry. During this period, Sheffieldhad total sales of $140,000 (not including the sales referred to in item 1 above). All of the sales were on account. | |
5. | On March 29, Sheffield collected $133,000 from customers on account. | |
6. | On March 29, Sheffield paid $16,100 on accounts payable. Check #457 was used. | |
7. | On March 29, Sheffield paid other operating expenses of $95,500. Check #458 was used. | |
8. | On March 31, Sheffield wrote off a receivable of $200 for a customer who declared bankruptcy. | |
9. | On March 31, Sheffield sold for $1,810 equipment that originally cost $12,000. It had an estimated life of 5 years and salvage of $1,000. Accumulated depreciation as of December 31, 2021, was $8,800 using the straight line method. (Hint: Record depreciation on the equipment sold, then record the sale.) |
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