Category: Journal Entry Examples

Q25. Accounts payable On January 8, 20×1, Entity A paid $11,000 in cash to pay off the balance of its accounts payable to supplier M.

Q24. Goodwill Entity A acquired Entity S with the following information: (a) Fair value of the assets of Entity S = $900,000 (b) Fair value

Q23. Sale of equipment Entity A sold the following equipment. (a) Cost of equipment = $70,000 (b) Accumulated depreciation = $63,000 (c) Sale price of

Q22. Depreciation On January 1, 20×1, Entity A purchased equipment at $90,000. The equipment is expected to have $9,000 residual value at the end of

Q21. Purchase of equipment Entity A purchased equipment and issued a promissory note to pay $26,000 three months later. Prepare a journal entry to record

Q20. Allowance for doubtful accounts On December 31, 20×1, Entity A had $150,000 balance of accounts receivable. It is estimated that 3% of accounts receivable