Question: Emerging Electronics Inc began business on February 1 2012 The

Emerging Electronics, Inc., began business on February 1, 2012. The following transactions occurred during its first two months of business, February and March:
February 1 Common stock was issued to investors in the amount of $305,000.
1 The company signed a long-term note with National Bank for $70,000.
8 The company purchased a building with cash for $125,000.
12 The company purchased equipment on account for $45,000.
20 The company purchased supplies worth $4,300 for cash.
28 The company paid for the equipment that was purchased on February 12.
29 The company purchased a two-year insurance policy that began on March 1 with cash for $5,000.
29 The company received the city utility bill for $475. The utility bill is always due the
12th of the following month and will be paid then.
March 1 The company purchased inventory on account for $65,000.
3 The company purchased some advertising in a local newspaper and on a local radio station for $3,500 cash.
12 February’s utility bill for $475 was paid (note that the bill was recorded as a payable in February).
31 The company paid employees for work done, $14,150 cash.
31 The company earned sales revenues of $125,000 for the month, of which $35,000 were on account. Cost of inventory sold was $31,250.
31 The company received the city utility bill for $425.

Give the journal entry for each transaction. Post each transaction to T-accounts. Prepare an unadjusted trial balance at March 31, 2012.

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  • CreatedSeptember 01, 2014
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