Question

Sysco Corporation, formed in 1969, is the largest global distributor of food service products, serving over 500,000 restaurants, hotels, schools, hospitals, and other institutions. The following summarized transactions are typical of those that occurred in a recent year (dollars are in millions).

a. Purchased buildings costing $432 and equipment costing $254 for cash.
b. Borrowed $119 from a bank, signing a short-term note.
c. Provided $55,371 in service to customers during the year, with $28,558 on account and the rest received in cash.
d. Paid $132,074 cash on accounts payable.
e. Purchased $41,683 of inventory on account.
f. Paid payroll, $6,540 during the year.
g. Received $22,043 on account paid by customers.
h. Purchased and used fuel of $1,750 in delivery vehicles during the year (paid for in cash).
i. Declared $698 in dividends at the end of the year to be paid the following year.
j. Incurred $121 in utility usage during the year; paid $110 in cash and owed the rest on account.
Required: For each of the transactions,
prepare journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions.)
Required: For each of the transactions,
prepare journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions.)
View transaction list
Journal entry worksheet
< 1 2 3 4 5 6 7 8 9 10 >
Purchased buildings costing $432 and equipment costing $254 for cash.
Note: Enter debits before credits.
Transaction General Journal Debit Credit
Record entry Clear entry View general journal

Answer 1

The student asked how to prepare journal entries for a set of transactions for Sysco Corporation. Each transaction affects at least two accounts, following the double-entry accounting system. The entries impact assets, liabilities, and equity accounts and should be recorded separating debits and credits.

Step-by-step explanation:

The student's question revolves around how to record journal entries for various business transactions. To tackle this, we need to apply the principles of accounting and specifically the double-entry system where every transaction affects at least two accounts.

Journal Entry Examples

1. For purchasing buildings and equipment for cash:
   Debit: Buildings $432
   Debit: Equipment $254
   Credit: Cash $686
2. For borrowing money from a bank:
   Debit: Cash $119
   Credit: Notes Payable $119
3. For providing service to customers:
   Debit: Accounts Receivable $28,558
   Debit: Cash $26,813
   Credit: Revenue $55,371

The given transactions continue likewise, affecting different accounts such as Inventory, Payroll, Dividends, and Utilities. When recording these entries, clear distinctions are made between assets, liabilities, and equity accounts, following the accounting equation Assets = Liabilities + Equity.

Answer 2

Sysco Corporation

General Journal

Transaction a

Debit : Buildings $432

Debit : Equipment $254

Credit : Cash $686

Transaction b

Debit : Cash $119

Credit : Note Payable $119

Transaction c

Debit : Accounts Receivable $28,558

Debit : Cash $26,813

Credit : Service Revenue $55,371

Transaction d

Debit : Accounts Payable $132,074

Credit : Cash $132,074

Transaction e

Debit : Merchandise Inventory $41,683

Credit : Accounts Payable $41,683

Transaction f

Debit : Salaries expense $6,540

Credit : Cash $6,540

Transaction g

Debit : Cash $22,043

Credit : Accounts Receivable $22,043

Transaction h

Debit : Fuel expense $1,750

Credit : Cash $1,750

Transaction i

Debit : Dividends $698

Credit : Dividends for Shareholders $698

Transaction j

Debit : Utilities expense $121

Credit : Cash $110

Credit : Accounts payable $21

Step-by-step explanation:

When there is no immediate payment of cash for expenses incurred, raise a liability - accounts payable. Otherwise recognize cash.