Journal entries for the month of December 2013 for each of the following transactions and events are to be prepared in proper form including explanation. In addition, any adjusting journal entries required at the end of December 2013 should also be prepared. If a journal entry is not required for certain items noted below you are to provide an explanation as to why you did not make an entry. You should cross-reference each of your journal entries with the corresponding letter below that applies to the particular transaction or event you are journalizing.
Each journal entry is worth 1.5 marks (1/2 mark for fully correct debit entry, 1/ 2 mark for fully correct credit entry, 1/ 2 mark for reasonable explanation).
You are to assume that all journal entries made prior to December were properly prepared and that all adjustments needed on November 30 were properly prepared. All amounts are in Canadian dollars. The company uses the straight line method of depreciation.
The following general ledgers accounts should be used as required. You may not need to use all of the general ledgers accounts.
Accounts payable, accounts receivable, accumulated amortization building, accumulated amortization equipment, accumulated amortization land, amortization building, amortization equipment, amortization land, cash, cost of good sold, deferred (unearned) revenue, deposit on equipment, equipment, insurance expense, interest receivable, interest revenue, inventory tools for resale, investment in Cabana Bearing, loan payable, manufacturing supplies expense, manufacturing supplies inventory, note receivable, prepaid insurance, rent revenue, retained earnings, revenue sale of tools, share capital, utilities expense.
Please type your journal entries on the attached journal entry form to complete this assignment. Students must submit a hard copy of your journal entries to Stephanie Miller by noon, February 6, 2015 latest. Attach a cover sheet including your name and student ID number.
The following transactions occurred December 1, 2013
24,000 and now has a value of 32,000. The building’s cost of 88,800 is near its current value if sold. The building has an estimated useful life of 40 years with no residual value. It is currently 10 years old.
The following transaction occurred December 8, 2013
The following transactions occurred December 15, 2013
The following items were noted at December 31, 2013
The following item occurred on January 16, 2014