Q 1 Dec15. Sold 500 shares of Ramblewood Manufacturing Corporation common stock that had been held as a short-term investmnet. The stock sold for 14 3/4, less a commission of $147.75. The stock was originally purchased as a block of 1,000 shares at a total cost (including commission) of $9,250.00. Dr. cash 7227.25 Cr. sales 4625 Cr. Gain from sales 2602.25 Is this right? Q 2 Dec 15 Completed 3.25 hours of service and repair work and sold customer Mary Bermuda two snowmobile covers and four pairs of large snow mittens. Selling price of the merchandise is $414.40 labor is $62 per hour, plus sales tax (6%) on merchandise and labor. Mary charged the full amount to her account. Merchandise listed on the sales invoice: Item: Snowmobile cover Qty: 2 Net cost per unit: $58.80 Item: Snow Mittens Large Qty: 4 Net cost per unit: $22.40 Q 3 Issued check to Darbi Gibbins, the part-time repair and sales person for the business.Darbi is paid $11.50 per hour and worked 39.5 hours during the past two week period ended Dec 14.
Question 1 You pretty much have it! Dr Cash, Cr Short-term investments and Gain on short term 12/15 Cash (101) 7227.25 Gain on Short term investments (731) 2602.25 Short term Investments (103) 4625.00 12/15 Accounts Receivable (105) 652.85 Snow and Access Sales (401) 414.40 Service Fees Earned (411) 201.50 Sales Tax Payable (205) 36.95 Q3 Cr Salaries and Wages Expense Dr. Cash
Qn 1 Dr Cash $7,227.25 Cr Short-term investment $4,625 Cr Gain on sale of short-term investment $2602.25 Qn 2 Dr Saraland - Mary Bermuda $652.85 Cr Sales $414.40 Cr Services revenue $201.50 Cr Sales tax payable $36.95 Dr COGS $207.20 Cr Merchandise inventory $207.20 Qn 3 Dr Wages expense $454.25 Cr Cash $454.25
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