Prepare journal entries to record the following transactions which are independent of each other. 1. a. On January 1, 2020, Shoppers Inc. issued a 9-month, 6%, $20,000 note in exchange for equipment. 6% is a prevailing interest rate on the market. 2. Ikeo Inc. sold $100,000 of gift cards during the last two weeks of December 2020. 3. Ulta Inc. allows each employee to earn 15 paid vacation days each year with full pay. Unused vacation time can be carried over to the next year. By the end of 2020, three employees carried over to 2021 a total of 20 vacation days, which representec 2020 salary of $6,000. Note: You may create a table as follows to organize your journal entries. Date Account titles Debit Credit 1 Cash 10,000 Sales Revenue 10,000

Prepare journal entries to record the following transactions which are independent of each other. 1. a. On January 1, 2020, Shoppers Inc. issued a 9-month, 6%, $20,000 note in exchange for equipment. 6% is a prevailing interest rate on the market. 2. Ikeo Inc. sold $100,000 of gift cards during the last two weeks of December 2020. 3. Ulta Inc. allows each employee to earn 15 paid vacation days each year with full pay. Unused vacation time can be carried over to the next year. By the end of 2020, three employees carried over to 2021 a total of 20 vacation days, which representec 2020 salary of $6,000. Note: You may create a table as follows to organize your journal entries. Date Account titles Debit Credit 1 Cash 10,000 Sales Revenue 10,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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