Bruce Bonner began a web-based computer sales and service company on March 1, 20X8 called Bonner's...

 

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Bruce Bonner began a web-based computer sales and service company on March 1, 20X8 called Bonner's Toys. Bruce has decided to record all prepayments to assets, and all uneared revenues to liabilities. The company will use a periodic inventory system. Bonner Toy's completed the follow transactions for March 20X8 March 1 Bruce invested $11,000 cash along with $9,000 of computer equipment into his new business. The equipment is estimated to have a useful life of 2 years and have no residual value after that time.. Purchased 10 months of insurance for $1,000 cash, the insurance is effective immediately. Purchased $9,000 of merchandise inventory from Runners, terms 1/10 n20. Received March 3 purchase and paid cash of $200 for shipping. Sold merchandise to John Smith that cost $3,300 for $4,000, John paid $1,000 cash and put the balance on his account, terms n30 Paid freight of $275 to ship goods to John Smith Hired technician with salary of $650 to paid every other week Bought $200 of office supplies on account. Cheque # 100 for $100 was issued to pay for newspaper advertising Advertisement to appear April 2 in the local paper. Paid for merchandise purchased from Runners on March 3 March 1 March 3 March 5 March 7 March 8 March 9 March 11 March 19 March 19 March 22 March 23 March 25 Received $1,000 cash from a XYZ company for 5 months of advertising on Bonner's website. Contract for advertising to begin on April 1, 20X8 Paid technician $650 in salary for first two weeks of worki Bought office furniture for $10,000 paying cash of $1,800 and signing a 1 year note at 6% for the balance. March 26 John Smith paid his account in full. March 31 Bruce paid his personal property taxes with cash, amount $1,000 March 31 Received a bill from the utilities company for March utilities in the amount of $130. The amount is due April 4. Required: Prepare general journal entries to record the transactions Explanations are Bruce Bonner began a web-based computer sales and service company on March 1, 20X8 called Bonner's Toys. Bruce has decided to record all prepayments to assets, and all uneared revenues to liabilities. The company will use a periodic inventory system. Bonner Toy's completed the follow transactions for March 20X8 March 1 Bruce invested $11,000 cash along with $9,000 of computer equipment into his new business. The equipment is estimated to have a useful life of 2 years and have no residual value after that time.. Purchased 10 months of insurance for $1,000 cash, the insurance is effective immediately. Purchased $9,000 of merchandise inventory from Runners, terms 1/10 n20. Received March 3 purchase and paid cash of $200 for shipping. Sold merchandise to John Smith that cost $3,300 for $4,000, John paid $1,000 cash and put the balance on his account, terms n30 Paid freight of $275 to ship goods to John Smith Hired technician with salary of $650 to paid every other week Bought $200 of office supplies on account. Cheque # 100 for $100 was issued to pay for newspaper advertising Advertisement to appear April 2 in the local paper. Paid for merchandise purchased from Runners on March 3 March 1 March 3 March 5 March 7 March 8 March 9 March 11 March 19 March 19 March 22 March 23 March 25 Received $1,000 cash from a XYZ company for 5 months of advertising on Bonner's website. Contract for advertising to begin on April 1, 20X8 Paid technician $650 in salary for first two weeks of worki Bought office furniture for $10,000 paying cash of $1,800 and signing a 1 year note at 6% for the balance. March 26 John Smith paid his account in full. March 31 Bruce paid his personal property taxes with cash, amount $1,000 March 31 Received a bill from the utilities company for March utilities in the amount of $130. The amount is due April 4. Required: Prepare general journal entries to record the transactions Explanations are

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Date Accounts tile and Explanations 01Mar Cash Computer Equipment Capitalbruce To record invet in bu... View the full answer