Betty's Bakery

January Miscellaneous Transactions to be Recorded via General Journal Entry

INSTRUCTIONS: (1) Prepare General Journal entries for the following January miscellaneous business transactions; (2) be sure the Debit and Credit amounts equal; (3) post each debit and credit from each General Journal entry to the appropriate General Ledger Accounts.

Transaction Description

Record liability for unpaid/accrued Salary Expense of $1,500 at month-end.

Record liability for unpaid/accrued payroll taxes of $500 at month-end.

Record $750 increase to Reserve for Doubtful Accts and Bad Debt Expense.

Record $750 Depreciation Expense at month-end.

Record January amortization of Prepaid Insurance in the amount of $450.

Record Cost of Goods Sold of $2,000 for the month of January.

Record $125 of bank service charges and charge to Miscellaneous Expense.

Record $75 credit card fee deducted from Cash In Bank (Interest Expense).

Record liability for unpaid/accrued Interest Payable of $500 at month-end.

Record $40 of Interest (Misc. Income) added to checking account by bank.

$1,000 of Advertising Expense debited to Office Supplies Expense in error.

$300 Miscellaneous Expense charged to Equip & Fixtures (A/C 150) in error.

January Cost of Goods Sold was overstated by $500 due to error.

JE-01 above recorded in error…should have been $150, not $1,500.

Record January amortization of Prepaid Rent in the amount of $1,250.00

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