PAMA COMPANY

JOURNAL ENTIES

AS AT 31 DECEMBER

Date Details Dr $ Cr $
March 21 Note receivable 3100
Account receivable 3100
Accepted $3100, 180
day 10%note
September 17 Accounts receivable 3255
Note receivable 3100
Interest revenue 155
To record salma
Hernandez dishonored
note
December 31 Bad debts expense 3255
Allowance for 3255
doubtful accounts
To write off salma
Hernandez accounts
against the allowance
for doubtful accounts

DESHINAN COMPANY

JOURNAL ENTRIES

AS FOR 2010 AND 2011

Date Details Dr $ Cr $
December, 13 2010 Note receivable 10000
Account receivable 10000
Accepted a $10000,45
day 8%note
December,31 2010 Interest receivable 40
Interest revenue 40
To record accrued
interest earned
January,27 2011 Cash 10100
Note receivable 10000
Interest receivable 60
Interest revenue 40
To record received
payment for clark note
March,3 2011 Note receivable 4000
Accounts receivable 4000
 Accepted a $4000, 10%
90 days note from
Shandi company
March,17 2011 Note receivable 2000
Account receivable 2000
To record accepted
$20000 of 90%note 30
days
April,16 2011 Accounts receivable 2015
Note receivable 2000
Interest receivable 15
To record Torres
dishonored note
May,1 2011 Bad debts expense 2015
Allowance for 2015
doubtful accounts
To write off Torres
account against the
allowance for doubtful
account
June, 1 2011 Cash 4100
Note receivable 4000
Interest receivable 100
Recorded shandi
payment

Date
April 8 Cash 8832
Omni credit expense 368
Sales 9200
To record sales less 4%
credit card expense
Cash of goods sold 6800
Inventory 6800
To record inventory of
goods sold
April 12 Accounts receivable 5265
Credit and expense 135
Sales 5400
To record less
2.5%continental card
expense
Cost of goods 3500
 Inventory 3500
To record cost of goods
sold
April 20 Cash 5265
Account receivable 5265
To record each
received continental
check

Date details Dr $ Cr$

January 1 Equipment (van) 26900
Sales tax 1950
Cash 24950
To record a new
delivery van estimated
to have five years life
and $3400 salvage
value
January 3 Van (equipment) 1550
Cash 1550
To record amount paid
to install starting rocks
in the van which
increased salvage value
by $200

Annual straight line depreciation = (cost – salvage value)/useful life

= [(26900+1550)-(3400+200)]/5

=$4970

4b

Date Details Dr $ Cr $
December 31 2010 Depreciation expense 4970
Account depreciation 4970
To record annual
depreciation on the
van
January 1 2011 Equipment 1970
Cash 1970
 To record payment of
receivable engine
May 10 Repair expenses 600
Cash 600
To report the van
repair expenses
December 31 Depreciation 3642
Accumulated 3642
depreciation
To record annual
straight line
depreciation on the
van

Book value =cost –depreciation

=28450-4970

Closing book value = $23480

cost =23480 + 1970

Cost = 25450

Annual straight-line depreciation = cost –salvage value/ usefullife

=25450-3600/6
= 3641.6

Annual straight line depreciation=$3642

Date Details Dr $ Cr $
January 5 Cash 17500
Accumulated 91000
depreciation loss 16500
Machine 125000
To record sale of
machine at $17500
Cash 34000
Accumulated 91000
depreciation machine 125000
Machine
To record sale of
machine at $34000
cash
 Cash 40000
Accumulated 91000
depreciation 6000
Gain 12500
Machine
To record machine sold
for $40000 cash

6
1. It matures on 30th January 2012
2. Interest =PRT
= 150000 x 9% x60/360
=2250
$2250 interest expense results from the rate in 2011
3. Interest = PRT

= 150000 x 9% x90/360
= 3375
$3375 interest expense results from the note in 2012
4. a/insurance of the rate

b/accrual of interest of the end of 2021 and

c/payment of the note at maturity

Date Details Dr $ Cr $
a Cash 150000
Note payable 150000
To record cash with 90
days ,9%
b Interest expense 2250
Interest payable 2250
To record accrual
interest
c Cash 153375
Note payable 153375
To record payment of
note at maturity
7

Gross PAYEE NSSF Medical Title welfare

pay insurance
100000 30%exceeding 5% 4% 10% 2%
0 410000 5/100*100000 4/100*100000 10/100*100000 2/100*100000
30/100(1000000 0 0 0 0
-410000)

202000 50000 40000 100000 20000

Details Dr $ Cr$
Salaries payable 588000
Cash 588000
To record cash payment

Date Details Dr $ Cr $
September 8 Cash 4800
Sales tax expense 200
Sales 5000
To record merchandise
sold for cash less 4%
Cost of goods 2900
Merchandise 2900
To record cost of
merchandise

Date Details Dr $ Cr$

September 15 Sales tax payable 200
Sales tax expense 200
To record remittance of
4% tax

Abbey investment

Date Details Dr $ Cr $
March 1 2011 Cash 88000
Capital 88000
To record investment
by Abbey
Dame investment

Date Details Dr $ Cr $
March 1 2011 Land 70000
Buildings 100000
Note payable 80000
Capital 90000
To record Dame
investment

Abbey withdrawals

Date details Dr $ Cr $
October 20 Withdrawals 32000
Cash 32000
To record Abbey
withdrawal of cash

Dame withdrawals

Date Details Dr $ Cr $
October 20 Withdrawals 25000
Cash 25000
To record Dame
withdrawal of cash