Task: Recording Nonquantitative Journal Entries
Abercrombie & Fitch Co. is a specialty retailer of casual apparel. The company’s brand was established in 1892. It became a public company in 1996 and then was spun off from The Limited in 1998. The following is a series of accounts for Abercrombie. The accounts are listed alphabetically and numbered for identification. Following the accounts is a series of transactions.
For each transaction, indicate the account(s) that should be debited and credited by entering the appropriate account number(s) to the right of each transaction. If no journal entry is needed, write none after the transaction. The first transaction is given as an example.
Account No. Account Title Account No. Account Title
1 Accounts payable 8 Rent expense
2 Accounts receivable 9 Supplies expense
3 Cash 10 Supplies
4 Contributed capital 11 Unearned revenue
5 Equipment 12 Wages expense
6 Interest revenue 13 Wages payable
7 Prepaid rent
Transactions Debit Credit
a. Example: Incurred wages expense; paid cash. 12 3
b. Collected cash on account.
c. Used up supplies (cash register tapes, etc.) this period.
d. Sold gift certificates to customers; none redeemed this period.
e. Purchased equipment, paying part in cash and charging the balance on account.
f. Paid cash to suppliers on account.
g. Issued additional stock for cash.
h. Paid rent to landlords for next month’s use of mall space.
i. Earned and received cash for interest on investments.