The following is a list of transactions that have occurred during the month of August. Date Transaction
Question:
The following is a list of transactions that have occurred during the month of August.
Date | Transaction |
August 1 | Started the business with (ID x 120) in cash. |
August 1 | Borrowed (ID x 450) + $150,000 in the form of a note payable. |
August 2 | Purchased land with cash for (ID x 300). |
August 2 | Purchased building with cash for (ID x 150). |
August 3 | Purchased equipment on account for (ID x 200). |
August 4 | Purchased a 12-month insurance policy for $12,000. |
August 5 | Purchased $150,000 of Food and Beverage Inventory on account. |
August 10 | Paid $2,800 in cash for advertising |
August 15 | Paid a utility bill of $1,500 in cash |
August 18 | Received a $1,250 cash deposit for a future banquet |
August 22 | Paid $3,500 in cash for china that is expensed immediately |
August 28 | Paid $90,000 in wages in cash for August 1-28 work |
August 31 | Generated $150,000 in food revenue for the entire month. The guests paid cash. |
August 31 | Generated $30,000 in beverage revenue for the entire month. The guests paid cash. |
August 31 | You withdraw $1,200 from the business for personal use. |
Required:
1. Prepare journal entries in good form for the transactions above.
2. Post the journal entries into T-accounts (make sure you have a total amount for each account). There should be no hardcoded numbers on the T-accounts, only formulas.
3. Complete the unadjusted trial balance in good form as of August 31, 2020 (make sure you have headers and totals). There should be no hardcoded numbers on the trial balance, only formulas.
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine