File 11 Calibri X cut Da Copy Format Printer ' ' 2 Wrap To A Metge de BIU Alignment Font Clipboard 39 D B Part One-Journal Entries Please record the necessary journal entries for the following transactions and events: On August 1st, Ash County Baseball Equipment, Inc. issued 200,000 shares of $1 par common stock. The shares were sold at an issue price of $18.50 per share. Cash (A+) 3,700,000 1-Aug Common stock-18.50 per share (Eq+) 200,000 PIC - common (Eq+) 3,500,000 common stock record On August 2nd, Ash County Baseball Equipment, Inc. purchased $250,000 worth of baseball bats from Hickory Sticks Incorporated. This sale was on account and there were no credit terms. 250,000 2-Aug 0 1 purchased inventory 3-Aug On August 3rd, Ash County Baseball Equipment, Inc. prepaid $24,000 for three months rent on their storage warehouse and $16,000 for six months worth of employee liability 2 insurance coverage. Both of these prepayment expenditures were made in cash. 3 prepaid rent 24,000 4 Cash 24,000 5 Account payable 16,000 6 6 months prepaid rent On August 4th, Ash County Baseball Equipment, Inc. signed a three-year, 6% notes payable 7 with Brett Bank and received $220,000 cash. Part One-Journal Entries Part Two - Adjusting Entries Part Three- Finans Enter D B A On August 4th, Ash County Baseball Equipment, Inc. signed a three-year, 6% notes payable 17 with Brett Bank and received $220,000 cash. 18 cash 220,000 4-Aug 19 notes payable 220,000 20 Signed a six year notes payable On August 5th, Ash County Baseball Equipment, Inc. purchased $150,000 worth of equipment from Offico, Inc. on account. Ash County booked this purchase under accounts 21 payable. 22 Murchadise inventory 150,000 5-Aug 23 Account payable 150,000 24 purchased inventory on account On August 6th, Ash County Baseball Equipment, Inc. sold merchandise inventory to the Dansbury Doubles baseball team. Ash County sold the merchandise for a sales price of $40,000 and the Dansbury Doubles baseball team paid in cash. The merchandise originally 25 cost Ash County Baseball Equipment, Inc. $28,000 to purchase. 26 Account Recievable 40,000 6-Aug 27 Sales Revenue 40,000 28 Sold Inventory 29 28,000 30 COGS 6-Aug 31 Merchandise Inventory 32 Recoreded COG on sale 28,000 On August 15th, Ash County Racehall B On August 15th, Ash County Baseball Equipment, Inc. sold merchandise inventory to the Saratoga Stud Muffins baseball team. Ash County billed Saratoga $90,000 and Saratoga will pay Ash County at a later date. This merchandise originally cost Ash County Baseball 33 Equipment, Inc. $62,000 to purchase. There were no credit terms on the sale. 34 Account recievable 90,000 15-Aug 35 Sales revenue 90,000 36 Sold inventory 37 38 COGS 62,000 5-Aug 39 Merchadise inventory 62,000 40 Recorded COGS on sale On August 20th, Ash County Baseball Equipment, Inc. paid $65,000 to Offico Inc. to pay off 41 a portion of the debt stemming from the August 5th equipment purchase. 42 cash 65,000 43 purchase equipment 65,000 44 purchase equipmwnt on account On August 25th, Ash County Baseball Equipment, Inc. received a $9,500 utility bill from 45 Regional Grid Utilities. Ash County will pay this bill during September. 46 Utilities expense 9,500 47 Utilities payable 9,500 48 purchases equipment in cash On August 31st, Ash County Baseball Equipment, Inc, declared a $.20 per share dividend on 49. its 200,000 outstanding shares of common stock. 50 Recievable 31-Aug 200,000 Part One-Journal Entries Part Two- Adjusting Entries Part Three- Financials 25-Aug Enter Type here to search O A B D 37 38 COGS 62,000 5-Aug 39 Merchadise inventory 62,000 40 Recorded COGS on sale On August 20th, Ash County Baseball Equipment, Inc. paid $65,000 to Offico Inc. to pay off 41 a portion of the debt stemming from the August 5th equipment purchase. 42 cash 65,000 43 purchase equipment 65,000 44 purchase equipmwnt on account On August 25th, Ash County Baseball Equipment, Inc. received a $9,500 utility bill from 45 Regional Grid Utilities. Ash County will pay this bill during September. 46 Utilities expense 25-Aug 9,500 47 Utilities payable 9,500 48 purchases equipment in cash On August 31st, Ash County Baseball Equipment, Inc. declared a $.20 per share dividend on 49 its 200,000 outstanding shares of common stock. 50 Recievable 31-Aug 200,000 51 200,000 52 record cash dividend 53 54 55 Dividend pay