Cash a -24 b -25 C d e f 19 h 1. The following events took...

 

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Cash a -24 b -25 C d e f 19 h 1. The following events took place for Tabby Corporation during the month of February. Record each transaction in the BSE template below. (20 points) a. On February 1, the firm pays a two-year insurance premium of $24 for coverage beginning February 1. b. On February 5, Tabby acquired merchandise inventory costing $100 paying 25% in cash and buying the remainder on account. c. During February Tabby sold merchandise to customers for $150. Of this amount, $10 was to customers who had advanced Tabby Corp. cash during January. Tabby makes the remaining sales on account. (note: record just the sale in this entry - COGS is in part d) d. The cost of the merchandise inventory sold in #c, above, was $95. e. During February, Tabby pays in cash selling and administrative expenses of $75. f. During February, Tabby collects cash om customers of $110. g. During February, Tabby pays $60 to suppliers of merchandise inventory for purchases previously made on account. h. On January 1, Tabby had taken out a $240, two-year loan from a local bank. The loan carried a 10% annual rate of interest. Interest payments were required at the end of each month. On February 28 Tabby paid interest for February. i. On February 28, Tabby recognizes insurance expense for the month on the policy purchased in part a. j. On February 28, Tabby recognizes depreciation expense of $15 for the month of February. Tabby uses an accumulated depreciation account. AR 140 -75 110 -110 -60 -2 Invent Prpd. ory Insur. PP&E 24 100 Assets -95 -1 AR: Accounts Receivable Prpd. Insur.: Prepaid Insurance Accum. Other Depr. Assets AP -15 AP: Accounts Payable CS: Common Stock 75 -60 Liabilities Unearn Other Reven. Payables CS Owners' Equity Retained Earnings -10 150 95 -75 -2 -1 -15 Cash a -24 b -25 C d e f 19 h 1. The following events took place for Tabby Corporation during the month of February. Record each transaction in the BSE template below. (20 points) a. On February 1, the firm pays a two-year insurance premium of $24 for coverage beginning February 1. b. On February 5, Tabby acquired merchandise inventory costing $100 paying 25% in cash and buying the remainder on account. c. During February Tabby sold merchandise to customers for $150. Of this amount, $10 was to customers who had advanced Tabby Corp. cash during January. Tabby makes the remaining sales on account. (note: record just the sale in this entry - COGS is in part d) d. The cost of the merchandise inventory sold in #c, above, was $95. e. During February, Tabby pays in cash selling and administrative expenses of $75. f. During February, Tabby collects cash om customers of $110. g. During February, Tabby pays $60 to suppliers of merchandise inventory for purchases previously made on account. h. On January 1, Tabby had taken out a $240, two-year loan from a local bank. The loan carried a 10% annual rate of interest. Interest payments were required at the end of each month. On February 28 Tabby paid interest for February. i. On February 28, Tabby recognizes insurance expense for the month on the policy purchased in part a. j. On February 28, Tabby recognizes depreciation expense of $15 for the month of February. Tabby uses an accumulated depreciation account. AR 140 -75 110 -110 -60 -2 Invent Prpd. ory Insur. PP&E 24 100 Assets -95 -1 AR: Accounts Receivable Prpd. Insur.: Prepaid Insurance Accum. Other Depr. Assets AP -15 AP: Accounts Payable CS: Common Stock 75 -60 Liabilities Unearn Other Reven. Payables CS Owners' Equity Retained Earnings -10 150 95 -75 -2 -1 -15

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