Refer to the previous information about the Holistic Health
1) Use the Excel workbook “Checks” that provides the check copies are for items purchased during 2019.
Determine the appropriate account name to debit for each good or service purchased.
• State the proper account name to record the purchase on the Excel workbook
“Account Names”.
• Do not record the journal entry.
• The debit will be the account name you decide and the credit account will always be cash.
Use only the following account names:
Automobiles
Computer Equipment
Furniture and Fixtures
Equipment
Leasehold Improvements
Other Current Assets
Intangible Assets
Research and Development Expense
Operating Expenses
• Record all types of current assets in the summary “other current assets” account
• Record all types of intangible assets in the summary “intangible assets” account
• Record all types of operating expenses in summary “operating expenses” account
Additional Information related to purchases during 2019:
Holistic contractually agreed to pay India Organic Health (their inventory supplier) to perform two years of product research and development beginning on January 2019. The contribution to research and development gives the company the right to purchase products developed in the next two years at the current sales price.
During 2019, Holistic purchased a 2017 Toyota Camry for a total amount of $21,624.88.
The company paid $5,000 cash and financed the balance with a 3-year note with Toyota Motors.
See the “NP amortization schedule” workbook for the terms of the notes payable.
During 2019, Holistic purchased a customer list of 25,000 potential customers. The company plans to market to these customers over the next five years.