Can somebody please check my journal entries?
Can somebody please check to see if my journal entries are correct based on the transactions? Journalize the transactions and prepare the trial balance.
1.In July 1, McLyod sold for 3500 equipment which originally cost 5000. Accumulated depreciation on this equipment at January 1 2009 was 1800; 2009 depreciation prior to the sale of the equipment as 450.
Cost of Equipment 5000
Less Acc Deprec. 2250 (1800+450)
Book Value 2750
Proceeds from sale 3500
Gain on disposal 750
July 1 Depreciation Expense 1800
Accumulated Depreciation 1800
July 1 Cash 3500
Accumulated Depreciation 2250
Equipment 5000
Gain on Disposal 750
2. McLyod estimates that uncollectible accounts receivable at year end is 4000
Bad debts Expense 4000
Allowance for Doubtful Accounts 4000
3. Note receivable worth 10,000 is a one year, 8% note dated April 1, 2009. No interest has been recorded
Interest Receivable 600
Interest Payable 600
4. The 3600 balance in insurance represents payment of a 6 month premium on Sept. 1 2009.
Insurance Expense 2400
Prepaid Insurance 2400
5. The building that costs 150,000 is being depreciated using the straight line method over 30 years.The salvage value is 30,000.
Depreciation expense 4000
Accumulated Depreciation-Building 4000
6. The equipment owned prior to this year that costs 60,000 is being depreciated using the straight line method over 5 years. The salvage value is 10% of cost.
Depreciation expense 10800
Accumulated Depreciation-Equipment 10800
7. The equipment purchased in May 1 that costs 13800 is being depreciated using the straight line method over 5 years, with a salvage value of 1800.
Depreciation Expense 300
Accumulated Depreciation-Equipment 300
8. Unpaid salaries at Dec. 31 2009 total 2200.
Salaries Expense 2200
Salaries Payable 2200
9. The unearned rent of 6000 was received on Dec. 1 for 3 months rent.
Unearned rent 6000
Rent Revenue 6000
10. Both the short term worth 11000 and long term worth 35000 notes payable are dated Jan. 1 and carry a 9% interest rate. All interest is payable in the next 12 months.
Interest expense (short term) 990
Interest Payable 990
Interest expense (long term) 3150
Interest Payable 3150
